In the world of cryptocurrency, the design of the token economic model is crucial to the sustainable development of the ecosystem. As the core of the Blur platform, the BLUR token is designed to incentivize user participation and promote the long-term growth of the platform. This article will delve into the economic model of the BLUR token and its impact on the community.
Basic information about BLUR token
According to Blur’s official documentation, BLUR tokens are issued by the foundation and are utility tokens. The BLUR token gives the community control over the Decentralized Autonomous Organization (DAO), and currency holders can manage the accumulation and distribution of value in the Blur protocol through voting or delegated voting. The total issuance of BLUR tokens is 3 billion, which will all be released within 4 to 5 years.
Token Distribution Details The distribution strategy of BLUR tokens is as follows:
51% allocated to Blur community members
29% allocated to past and future core contributors, with a 4-year release cycle
19% is allocated to investors with a release period of 4 years
1% is allocated to advisory members, with a release period of 4 years
Such a distribution strategy not only incentivizes community participation, but also ensures the long-term commitment of core contributors and advisors, thereby promoting the stable development of the platform.
Release speed and cliff period
The release speed of BLUR tokens is designed very carefully, as follows:
Release 40% of the total supply in the first year
Release 30% of the total supply in the second year
Release 20% of the total supply in the third year
Release 10% of the total supply in the fourth year
Additionally, BLUR tokens allocated to core contributors and launch partners will vest according to the same schedule, with an added 4-month cliff period. Advisors' BLUR allocations vest in 48 to 60 months, with a cliff period of 4 to 16 months. Such a design can not only avoid market fluctuations caused by the rapid release of tokens, but also promote long-term holding and participation.
Airdrops and community incentives
In the BLUR token issuance, 12% of the tokens were released to the community in the first round of airdrops, and an additional 39% of the tokens were distributed to the community through contributor grants, community initiatives, and incentive programs. Of this 39%, 10% has been allocated to the incentive budget for the next release incentive. If all incentive budgets are used, more incentive budgets will be available for allocation through voting.
BLUR’s airdrop strategy not only triggered enthusiastic responses from users, but also demonstrated a clear wealth effect. According to data from defillama, before the first round of airdrops, some users thought that Blur was only airdropping this round, which led to an outflow of ETH from the Blur Bid bidding pool. However, when the second round of airdrops was officially launched, there was a significant inflow of ETH into the pool, and the current equivalent value of the pool reached US$40 million.
DAO Governance and Community Participation
The largest group of BLUR tokens is distributed to the community, which is in line with the Blur Foundation's philosophy of operating on a DAO control protocol. This design avoids to a certain extent the problem of centralized governance in which some projects are called DAO but actually have voting rights controlled by a few people. In addition, the vesting period and cliff time of tokens distributed by core contributors and consultants are increased to benefit community members, further enhancing the community's sense of participation and belonging.
Community decision-making on the agreement rate: It is worth noting that Blur officially plans to launch a proposal for the agreement rate (up to 2.5%) in 180 days, and it will be decided by the community at that time. This move not only reflects the importance of community opinions, but also further strengthens the practice of DAO governance. Community members can flexibly adjust the agreement rates according to their own needs and market conditions, thereby achieving a better ecological balance.
in conclusion
The economic model of BLUR token guides platform liquidity through continuous incentives, avoiding the problem of platform liquidity decay after the one-time release of incentives. Through multiple and multi-stage incentives, BLUR not only develops users' long-term usage habits, but also enhances the platform's stickiness and influence. In the future, with continued community participation and governance, the BLUR token will play an increasingly important role in the cryptocurrency market.