Blast Layer-2 network launch draws both interest and criticism over potential yield model

The launch of the Blast Layer-2 network by Pacman, the founder of the Blur (BLUR) NFT marketplace, has garnered both interest and criticism, particularly regarding its potential yield model.

Differentiated Approach: Blast is positioned as an Ethereum Virtual Machine (EVM)-compatible, optimistic rollup layer-2 network. The protocol aims to provide users and developers with a higher baseline yield without altering the familiar experience for crypto-native users.

Yield Incentives: Blast offers users a 4% yield for ETH and 5% for stablecoins like USDC. The protocol emphasizes the ability for users to earn "native yields."

Mainnet Launch: While the mainnet launch is scheduled for February 2024, users can start earning Blast Points by inviting others to join the protocol.

Funding and Partnerships: Blast successfully raised $20 million in a funding round led by venture capital firms Paradigm and Standard Crypto.

The launch has had a positive impact on the price of BLUR, with an increase of more than 5% in the last 24 hours.

Criticism and Concerns:

Ponzi-Like Structure Allegations: Some crypto stakeholders have criticized Blast for its alleged Ponzi-like structure. Crypto entrepreneur T3chman and Tytan, co-founder of NFTY Finance, likened Blast to a pyramid scheme.

Invite System Concerns: Concerns have been raised about Blast's invite system, with some community members highlighting its resemblance to a pyramid scheme.

Deposits and Exit Strategy: Adam Cochran, a partner at Cinneamhain Ventures, criticized Blast for being a platform with one-way deposits, and he raised concerns about the absence of a current exit strategy.

Closed Contract Ownership: Crypto developer Sisyphus pointed out that the Blast 'bridge' remains a closed contract owned by a 5-person multisig without an existing Layer-2.

Reliance on Token Emissions: A contributor to Mantle Network noted that the Blast Layer-2 network might heavily rely on BLAST padded emissions to retain total value-locked post-launch.

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