Posted:
- Blast garnered large consideration over the previous couple of weeks.
- Criticisms of it being a Ponzi scheme have surfaced.
Blast protocol, over the previous couple of weeks, has taken the crypto world by storm. In a brief time period, Blast has managed to make important progress throughout varied sectors.
What’s Blast?
Blast is a Layer 2 answer the place customers deposit crypto, like staked Ethereum and stablecoins, to earn returns.
In simply 4 days, the Blast mainnet contract attracted $415 million in Complete Worth Locked (TVL). Many joined to get the Blast L2 airdrop by their factors system.
In response to ASXN’s analysis, they simplify issues: 50% of the airdrop goes to builders, and 50% to Early Entry Customers.
The Early Entry Person airdrop is break up between Blast deposits and Blur stakers.
Nonetheless, it is a easy view. Staking and deposit quantities change, they usually don’t think about how factors are distributed, doubtless following an influence regulation. Their evaluation estimates that with $412 million TVL, $50 million of BLAST tokens might be earned.
However the actual distribution will rely upon how factors are given out.
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The Blast mainnet contract has sucked up $415M in TVL in simply 4 days, with many contributors in search of to earn the Blast L2 airdrop by way of their factors mechanism.
Let’s attempt to get a ballpark estimate of the return on deposited capital into Blast & from staking Blur: pic.twitter.com/GnzrLRwJt0
— ASXN (@asxn_r) November 24, 2023
If it appears to be like like a duck, swims like a duck, then it most likely is…
Nonetheless, many members within the crypto neighborhood have been accusing Blast of being an elaborate Ponzi scheme on account of its incentive program and excessive rewards.
The invite system, the place customers get factors for inviting others, is inflicting controversy. Some say it appears to be like like a pyramid scheme.
Critics observe there’s no clear approach for customers to exit, which might be an issue for withdrawing funds or becoming a member of on-chain actions.
Grasp-Piece or Grasp-Ponzi…
Let’s expose the TRUTH about @Blast_L2 :
(🧵👇) pic.twitter.com/6u9iwV2LiD
— Landon Sousa | Avem (@avemfn) November 23, 2023
The CEO of Blast responded to those criticisms, addressing rewards and the invite system in a latest tweet. Although some say Blast looks as if a pyramid scheme, the CEO has clarified that the yield comes from Lido and MakerDAO.
Life like or not, here’s LDO’s market cap in BTC’s terms
Lido will get its yield from ETH staking, part of Ethereum’s Proof-of-Stake mechanism. MakerDAO’s yield comes from on-chain T-Payments, essential to the US economic system.
I’ve seen quite a lot of misunderstandings about Blast spreading round. Whereas many of those are humorous memes, it is essential to set the report straight on a couple of factors:
— Pacman | Blur + Blast (@PacmanBlur) November 24, 2023
Solely time will inform whether or not Blast may have a long-lasting influence on the L2 sector. Nonetheless, the protocol may act as a constructive commercial for the rewards on MakerDAO and Lido.