New Governance Proposal Suggests Turning On Blur Fee Switch
Split Capital introduced a governance proposal to enable a "fee switch" on the Blur NFT Marketplace, potentially adding a new revenue opportunity.
The Deets
- Fee Structure: Proposal suggests adding a 0.5% protocol fee on each trade on Blur.
- Tokenomics Update: Introduces two tokens—$BLUR for utility and $veBLUR for governance.
- Incentives: Season 4 rewards 30 million $BLUR to active traders; $veBLUR holders would gain voting rewards.
- Collection Voting: $veBLUR holders could vote on collection-specific multipliers to direct rewards.
The Bulk
The proposal from Split Capital would mark a notable shift in the Blur NFT Marketplace’s operations, where trades have previously incurred 0% fees. By implementing a 0.5% protocol fee on each trade, the proposal aims to enhance platform sustainability while directing fees to vote-escrowed BLUR (veBLUR) token holders, rewarding long-term participants.
The proposed system revamps Blur’s tokenomics by introducing $BLUR for utility and $veBLUR for governance. While $BLUR tokens fuel the platform's incentives, $veBLUR would empower holders to vote on key decisions, including trading fee allocation and collection rewards.
Additionally, in this scenario, $veBLUR holders would be avle to vote to adjust collection multiples for specific NFT projects, like Azuki or Bored Ape Yacht Club. These voting powers allow holders to influence reward distribution, driving liquidity to collections they favor and enhancing market depth.
❗Why It Matters
Turning on the "fee switch" has long been a topic of debate for protocols with governance tokens and this does not mark the first instance in which the fee switch was suggested for Blur, aiming to provide a more substantiative utility to the Blur token.
🔜 What’s Next?
With Season 4 underway, Blur's community is encouraged to engage in ongoing discussions around the proposal prior to it moving towards an official DAO vote.
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