BLUR & Blast Founder Responds to Rumors of Ponzi Scheme

BLUR founder Packman clarifies recent yield surge, attributing it to on and off-chain economics, dismissing Ponzi scheme concerns.

The BLUR token has ignited the altcoin market, experiencing an impressive 100% gain in the past week following its recent listing on the Binance crypto exchange. Despite the meme-filled enthusiasm within the crypto community, rumors have emerged, speculating about BLUR’s potential association with a ponzi scheme.

Blur founder Clears the Air
In response to circulating memes and misconceptions about Blast, BLUR founder Packman took to social media to set the record straight on certain key points. One prevalent meme suggests that Blast operates as a Ponzi scheme due to the seemingly attractive yield it offers. Packman explains that Blast’s yield is sourced, initially, from Lido and MakerDAO.

The yield from Lido, according to Packman, originates from Ethereum staking yield, an integral part of Ethereum’s Proof-of-Stake consensus mechanism. On the other hand, MakerDAO yield comes from on-chain T-Bills, which are 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 seem too good to be true, as per 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.

FUD Around Blast Invite Rewards
In response to circulating FUD (Fear, Uncertainty, Doubt) regarding Blast’s invite rewards, BLUR founder Packman clarified that the invite system is not a new mechanism but a well-established concept that has been in use for a considerable period.

Explaining the rationale behind Blast’s invite mechanism, Packman emphasized the pivotal role of the community in the project’s success. Acknowledging that Blast’s vision heavily relies on community contribution, Packman highlighted that the goal is to foster the on-chain economy with the highest-yield Layer 2 (L2) possible, and achieving this ambitious vision requires collective effort.

In Packman’s view, contributing to an L2 can take various forms, including being a developer of the underlying protocol, creating applications on top of the L2, or being a user of the L2. Drawing an analogy, he likened the community to the people in a city, emphasizing that users who help make 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.

As of press time, BLUR is trading at $0.60 with a market cap of $691 million. There’s been a heavy accumulation of BLUR by whales recently. This can further take the BLUR price to $1.