• Blur is a nonfungible token (NFT) marketplace that has seen a spike in trading volumes and total sell-side liquidity since conducting an airdrop on Feb. 14.
• Blur’s incentive program and advanced NFT trading features are causing users to shift away from OpenSea, the leading marketplace.
• OpenSea recently discontinued its marketplace fee of 2.5% per sale, suggesting that Blur’s growth threatens it, and both platforms have locked horns on the critical issue of creator royalties.
Blur’s Liquidity Heists
Blur is a nonfungible token (NFT) marketplace that has seen its trading volumes and total sell-side liquidity skyrocket since conducting an airdrop on Feb. 14. The team allocated 12% toward an early user airdrop in the first season that ran from the marketplace’s gated launch in March 2022 through February 2023. As analytics from data scientist Hildobby show, Blur is eating into the market share of OpenSea and other aggregators like X2Y2 due to its incentive program and advanced NFT trading features which are causing users to shift away from the leading marketplace.
OpenSea Feels The Heat
OpenSea has felt this pressure as they were willing to let go of significant chunk of earnings — around $336.8 million for one year — by discontinuing their 2.5% per sale fee in response to Blur’s success, suggesting that Blur’s growth threatens it significantly enough for them to make such move. Both platforms have locked horns on the critical issue recently of creator royalties, with Pacman—the founder of Blur—stating OpenSea started the spat first and that Blur was forced to retaliate with restrictive features like limited royalties if collections were also listed on OpenSea too; however he ideally wants creators to be able to earn royalties on both platforms so this could change soon if OpenSea succumbs to competition instead of fighting it off.
The BLUR Token
To incentivize creators and users, Blur introduced their own BLUR token which was used as way to compensate creators for missed earnings they would have made had they been allowed full creator royalties while listing their collections before this feature was available on platform; essentially acting as reward or recompense for those who had been loyal enough not switch over yet despite lack of support at time when royalty payment system wasn’t yet enforced or implemented into Marketplace’s protocols pre-Season 2 launch date .
Decentralized Governance
The success of projects like Blurs depends heavily upon how well upcoming governance proposals work out; as these will decide how much money can be earned via fees & royalties which are integral part any successful decentralized Marketplace protocol’s design architecture & infrastructure . This means policies will likely need update more frequently than usual keeping up with changing trends within greater industry & market conditions based upon feedback received from larger community consensus thus allowing developers present solutions respective problems under any given circumstances , creating sense dynamism within overall process or set procedures being followed ensure smooth functioning & continued operations project itself .
Conclusion
In conclusion , though blur has made great strides towards taking some open sea’s market share , future success still depends upon outcome upcoming decentralized governance proposals being put forth by team & how well these are adopted accepted by overall community – thus only time will tell how far ahead lead will become whether two projects can eventually reconcile differences come together create bigger better ecosystem everyone benefit from !