On Tuesday, the ascendant Blur NFT marketplace revealed that soon it would airdrop an additional $300 million worth of tokens to its devoted users — just days after claiming OpenSea’s title as the top Ethereum NFT trading platform based on volume.
Blur has launched its “Season 2” and will release 300 million of its BLUR tokens for users. Currently, the price of the token is $0.99, as data from CoinGecko shows.
Last week, the long-awaited launch of the BLUR token marked the completion of Blur’s “Season 1.” To show appreciation for their traders’ support, Blur distributed special “care packages” to those who made the switch from rival NFT marketplaces, listed NFTs as soon as its October launch arrived, or used Blur to put in bids on various NFTs.
According to the marketplace, “Season 2” will involve tokens being given to traders in a more gamified approach. Users of Blur will be assigned a “loyalty score” depending on how engaged they are with the platform. A 100% loyalty score will be awarded to traders who don’t use any other NFT platform.
The amount of BLUR tokens a user gains from an upcoming airdrop is contingent upon their loyalty score coupled with the total number of NFTs they list.
This new loyalty program suggests that even the tiniest actions may make a difference in increasing your chances of getting more BLUR. On Tuesday, the company hinted that even tweeting quotes from their Twitter updates about Season 2 might actually raise a user’s loyalty score.
However, no details are given as to what strategies Blur utilizes to connect data between different websites, such as Twitter and the platform itself.
The Tuesday announcement marks the most recent clash in an ongoing battle between NFT platforms for acquiring and retaining customers. OpenSea, which had long been regarded as the leading Ethereum-based NFT marketplace with its $13.3 billion trading volume, lost users in recent months due to Blur’s alluring token-backed rewards program. Both companies have enticed people to refrain from using their competitors by providing exclusive benefits.
Last week, OpenSea made the bold move of eliminating its 2.5% marketplace fees – which was their main revenue source – temporarily in response to Blur’s rapid success. Additionally, they reduced creator royalty protections that had been previously considered the gold standard for NFT models; these protections guaranteed creators a 5-10% commission on secondary sales. This is how NFT projects are able to consistently make money following an original sale period.
The long-term effects of Blur’s incentive program are yet to be seen, but its immediate influence on rivals like OpenSea is sure to bolster current trends.
Although Blur has certainly seen a spike in trading volumes compared to OpenSea, the majority of this action is attributable to whale traders attempting to manipulate Blur’s rewards program and amass as many BLUR tokens as they can.
Still, the success of the rewards program depends on the worth of Blur’s native token. Within 24 hours, BLUR has declined by an alarming 24%, dropping from its original price point of $1.28.