Proposal for enhanced Incentives + Blur Points: “Project Uplift”
TL;DR: Enhance Blur’s incentives + points system to reward traders for profitable sales. Resulting in positive price trends & higher revenue for the Blur team.
This proposal aims to revamp the incentive structure of the Blur NFT marketplace, fostering a mutually beneficial ecosystem for all stakeholders including Blur, investors, whales, traders, and listed projects. By addressing current challenges and introducing a revised incentive system, the objective is to position Blur as the preferred platform while empowering projects to thrive.
Currently, the incentive scheme of Blur encourages liquidity and trading volume, which is commendable. However, an unintended consequence arises when traders engage in a cycle of undercutting to accumulate blur points, leading to a downward price spiral. This not only affects traders but also the projects, asset holders, and Blur’s reputation.
Solution and Incentive Refinement:
The solution proposed is straightforward yet impactful: adjust incentives to reward traders for profitable sales. By motivating traders to prioritize profit-oriented trades, even those with modest gains, a positive feedback loop of price appreciation can be established.
This refined incentive structure yields benefits for all parties involved:
- Blur: Upon fee activation, the elevated asset prices result in higher transaction fees, contributing to Blur’s revenue growth.
- Traders: Traders stand to gain both in terms of accumulating Blur points and realizing improved trading profits.
- Asset Holders: The enhanced value of their assets translates to higher returns, bolstering their investments.
- Projects: Increased trading volume naturally drives up the floor price of projects, fostering a healthier market environment.
Furthermore, the proposed shift in incentives focuses on cultivating a “Price Go Up” mindset. Points would be awarded exclusively for bids/buys and listings/sales that surpass the preceding sale price. This approach encourages a consistent increase in fee revenue, replacing the current downward price pressure with an upward trend.
The “Project Uplift” proposal seeks to enhance the NFT marketplace by refining Blur’s incentive structure. By introducing a small change, the negative price spiral can be replaced with a positive trajectory. This transformation benefits all stakeholders by fostering value growth for projects, asset holders, traders, and Blur itself. By embracing this proposal, Blur can solidify its stature as a premier NFT platform while nurturing a sustainable and thriving ecosystem.