New Proposal Urges Blur to Turn On Fee Switch
Arca, an investment and research firm, pitched a two-tiered solution to add utility to $BLUR: a 1% base trading fee and a tiered fee structure for Blur's marketplace.
- Blur's tokenomics originally froze governance voting for 180 days after its 02/23 release.
- $BLUR, despite gaining NFT market dominance, lacks token utility beyond governance voting.
- Arca's proposed fees would fund daily buybacks and $BLUR token burns.
- The tiered fee structure offers discounts based on a user's $BLUR holdings.
While Blur quickly gained a majority of the NFT trading volume market share and buzzed with major success in the beginning of the year, some shine has worn off the marketplace and its native token. This success was, in part, due to distributing $BLUR tokens to users providing liquidity.
But now, almost a year in, and with the initial freeze on governance voting lifted, Blur faces a challenge with regards to its $BLUR token, which is merely a governance token at this time. With some uncertainty regarding its season ends and a narrow use-case, many have had little incentive to hold the $BLUR token.
Arca's Blur Improvement Proposal includes two changes to change that incentive. Firstly, the introduction of a 1% base trading fee for the Blur marketplace. This fee would then be used for daily buybacks and subsequent burning of the $BLUR token. Blur competitor LooksRare has recently instituted a buy back program for its $LOOKS token.
Second, to ensure Blur retains its market share and not deter users with the new fee, Arca suggests a tiered fee structure. This structure would give users holding $BLUR tokens a discount on the marketplace's 1% fee.
The larger intent behind Arca's proposal is not just the implementation of these changes but to instigate a discussion about the future of the platform and the $BLUR token's utility. They aim to gather feedback and potentially modify the proposal based on inputs from all Blur stakeholders.
❗Why It Matters
The Arca proposal has the potential to reshape the Blur platform's landscape, offering increased utility for $BLUR token holders and potentially reinvigorating the token farmers who have been mired in uncertainty and falling prices over the course of the last year.
📊 By the Numbers
$BLUR is up nearly 5% in the last 24 hours to $0.16, but still remains 97% off its all-time highs.
🎤 Investor Insights
Our main objective is to reignite discussions about the $BLUR token's future utility and address the challenges facing its market position.Sasha Fleyshman
🔜 What's Next?
Arca's proposal sets the stage for critical discussions regarding the utility and future of the $BLUR token. Feedback from stakeholders, including token holders, liquidity providers, the Blur Foundation, and NFT collection teams, will be essential in refining and implementing this proposition which was formally recognized by Blur last night.
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