BLUR Founder Addresses Concerns over Security and Ponzi Scheme, BLUR Token Drops 13%

BLUR Founder Addresses Concerns over Security and Ponzi Scheme, BLUR Token Drops 13%

| Updated
by Bhushan Akolkar · 3 min read
BLUR Founder Addresses Concerns over Security and Ponzi Scheme, BLUR Token Drops 13%
Photo: Depositphotos

BLUR founder addressed concerns over the seemingly attractive yield for Blast adding that they are not unsustainable but just fundamental components of both on-chain and off-chain economies.

Last week, the BLUR token witnessed a solid run-up soon after its listing on the crypto exchange Binance. Amid the meme-filled excitement within the crypto community, rumors have circulated, suggesting a potential association between BLUR and a Ponzi scheme.

BLUR Token

In response to the circulating memes and misconceptions about Blast, BLUR founder Packman took to social media to clarify key points. One prevalent meme implies that Blast operates as a Ponzi scheme due to its seemingly attractive yield. Packman explains that Blast’s yield is sourced, initially, from Lido and MakerDAO.

The yield from Lido, Packman elaborates, comes from Ethereum staking yield, an integral part of Ethereum’s Proof-of-Stake consensus mechanism. Additionally, MakerDAO derives its yield from on-chain T-Bills, representing debt obligations from the US government.

Packman emphasizes that these yields are not unsustainable and are fundamental components of both on-chain and off-chain economies. The reason Blast’s yield may appear too good to be true, according to Packman, is that Blast makes this yield the default for all users, effectively democratizing higher yield.

Addressing another meme, Packman dismisses the notion that Paradigm played a role in Blast’s launch, stating unequivocally that Paradigm had zero involvement in Blast’s go-to-market (GTM) strategy. While acknowledging Paradigm’s expertise in research and technical L2 design (going live in February), Packman emphasizes that they do not consult with Paradigm on GTM, keeping those aspects internalized.

Packman acknowledges that Paradigm has provided post-launch suggestions, which are actively under consideration. He praises Paradigm as a research powerhouse and appreciates the collaborative relationship, where trusted entrepreneurs make final decisions, highlighting one of the reasons he enjoys working with the Paradigm team.

Details About the Blast Invite Rewards

Responding to circulating FUD (Fear, Uncertainty, Doubt) surrounding Blast’s invite rewards, BLUR founder Packman provided clarification, asserting that the invite system is not a novel mechanism but a well-established concept with a considerable history of usage.

In elucidating the rationale behind Blast’s invite mechanism, Packman underscored the pivotal role of the community in the project’s success. Recognizing that Blast’s vision is heavily reliant on community contribution, Packman emphasized that the goal is to nurture the on-chain economy with the highest-yield Layer 2 (L2) possible, necessitating a collective effort to achieve this ambitious vision.

According to Packman, contributing to an L2 can manifest in various ways, such as being a developer of the underlying protocol, creating applications on top of the L2, or being a user of the L2. Using an analogy, he likened the community to the people in a city, highlighting that users who actively contribute to making Blast a thriving L2 by bringing in friends are providing genuine value to the ecosystem and, therefore, deserve to be rewarded. This, Packman stated, is the fundamental reason why invite rewards exist within the Blast platform.

the party for the BLUR investors seems to be ending as the token price has tanked 14% over the last 24 hours. At press time, BLUR is trading at $0.5215.

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