Reinstating $BLUR Rewards to Market Makers and Liquidity Providers from the Community Treasury

Introduction
The role of market makers, or Blur farmers, has been crucial in establishing and maintaining a robust, liquid marketplace on Blur. In the past, incentivizing these contributors with $BLUR rewards has correlated with increased platform activity and enhanced market liquidity. This proposal aims to reintroduce such incentives in response to declining platform metrics.

Situation Analysis
In previous seasons, $BLUR rewards to Blur farmers resulted in notable increases in Total Value Locked (TVL) and user engagement. Currently, the platform’s TVL is approaching all-time lows, which can be directly linked to the absence of incentives for Blur farmers in Season 4.


(source)

In addition to a decreasing TVL, the platform is seeing a decrease in both weekly volume share and weekly trade share over the past 6 months. (source)

Proposal
Allocate a portion of the Blur community treasury to reinstate $BLUR rewards for market makers. This allocation would be tied to the current point and loyalty system ensuring that rewards are earned and directly contribute to platform growth.

Justification:
Enhanced liquidity ensures a stable and reliable trading experience, critical for user retention and growth. Immediate action is necessary to prevent further decline in TVL and market share, ensuring the platform’s competitiveness and relevance in the NFT market.

Impact Assessment
Historical data suggests that incentivizing market makers has led to peaks in TVL and market activity. Reintroducing $BLUR rewards could potentially reverse the recent downtrend, revitalizing the platform’s economic environment and benefitting all holders by increasing the underlying value and utility of $BLUR.

Conclusion
This proposal seeks to leverage the community treasury to safeguard and stimulate the Blur ecosystem through strategic incentives. By supporting market makers, we aim to enhance market efficiency and drive long-term value appreciation for $BLUR holders.

ESK

Imagine if you focused 1% of the energy you use towards being an addicted blur farmed towards not rugging/stealing from the projects you make.

Perfect example of a proposal made by someone who doesn´t care about the platform itself, but extracting as much as possibly. Who in gods earth wants to incentivize again for people to take losses just to farm points?.

Unlike you, not everyone is willing to create cashgrab projects just to finance another month of farming :smiley:

okay luu, thanks for your feedback!