S4mmy.eth Profile picture
Mar 31 18 tweets 7 min read Twitter logo Read on Twitter
The Blur x DeGods partnership could single-handedly catalyze the next wave of adoption for NFTs.

Here's why you should pay attention.🧵(1/16) Image
Blur has been divisive.

The initial airdrop & liquidity injection was praised.

But the tide changed after incentives drove counterproductive airdrop farming behaviour.

Daily bidding pool liquidity is in decline.

Farmers are realizing Season 2 ≠ Season 1 profitability.

/2 Image
20% of Blur's volume comes from only 15 wallets.

This isn't anything new.

It's a typical Market Maker (MM) model.

MMs provide liquidity & depth to markets.

They profit from the difference in the bid-ask spread.

But the airdrop is skewing it.


Whales are taking net losses in the hopes the airdrop will compensate them.

The largest Market Maker is Machi.

He's already taken 4.6k ETH ($8.4m) in losses from his BAYC, Gitcoin & Punk activity.

It's unlikely the $BLUR spot value will compensate.


But this could change once the $BLUR token becomes a productive asset.

Not only could a MM receive a token, but could also receive distributions from marketplace fees.

But Blur doesn't have fees!

It needed to gain market share from Opensea to become viable (hence loyalty).

/5 Image
The initial VC funds don't put money into a company without the prospects of future returns.

They will receive 19% of the token allocation which vests in six months - their exit.

The $BLUR token is purely governance (at the moment).

But what decisions could be made?

/6 Image
The recent regulatory impost makes it difficult for tokens NOT to be classified as a security.

But if decisions are determined by a decentralized governance framework then there could be a vote to turn fees on & distribute w/o this concern.

But the product needs to be good.

/7 Image
That's where partners like DeGods come in.

Have knowledgeable partners onboarded to iterate their product.

Create an optimal decision-making tool that contains all the news, research and data in one place.

One that also supports creators.

/8 Source: Bloomberg Terminal ...
The bulk (51%) of the distribution is going to the community.

The core users of the product.

But making decentralized decisions can be inefficient.

There needs to be a delegate/committee.

Some interesting suggestions are being put forward.

/9 Image
But incentives drive market behaviour.

That's why Blur has set up an "Incentive Committee" to consider this.

If we assume participants are profit maximizers then we can predict & adjust behaviour accordingly.

Incentivizing liquidity for an illiquid asset class should be the focus.

Enabling holders to exit positions efficiently for fair value will help adoption.

Bur market depth is shallow: 72kΞ.

That's 0.5% of the 16mΞ TVL on Ethereum.

Single NFT traders can move the market.

/11 ImageImage
Whales that provide the liquidity will become the Market Makers.

The more tokens they accrue the more they will be able to direct incentives.

Committees will need to regulate this.

Stepped rewards based on the depth of the market would be beneficial.

/12 Image
Leveraging the DeGods appeal to onboard new participants (eventually) will be useful.

Get them onto a superior platform to Opensea.

A platform that involves its users, aligns incentives & has a decentralized focus.

After all, volume is on Blur, but the # traders are low.

/13 Source: https://dune.com/hi...
Do I think the DeGods x Blur partnership will actually change much overnight?


Progress will also be determined by macro, real utility & improved user experience/interface.

But the collaborative approach is beneficial.

Silos will just drive wedges in the ecosystem.

There will be several big players in the market.

LooksRare has already integrated fiat on/off ramps with Moonpay.

Any decentralized protocol with optimized incentives & an easy-to-use product is good for progress.

Opensea will always struggle with user/investor conflicts.

/15 Image
I hope the DeGods x Blur partnership encourages further collaboration in the NFT space.

The PVP silo approach is a hindrance to progress.

Forward-looking innovative change should be incentivized.

After all, a rising tide lifts all boats.


Keen to hear your thoughts on the partnership!👇

If you found this🧵useful please hit RT on the first tweet to spread awareness.

Thanks for reading. 🙏

• • •

Missing some Tweet in this thread? You can try to force a refresh

Keep Current with S4mmy.eth

S4mmy.eth Profile picture

Stay in touch and get notified when new unrolls are available from this author!

Read all threads

This Thread may be Removed Anytime!


Twitter may remove this content at anytime! Save it as PDF for later use!

Try unrolling a thread yourself!

how to unroll video
  1. Follow @ThreadReaderApp to mention us!

  2. From a Twitter thread mention us with a keyword "unroll"
@threadreaderapp unroll

Practice here first or read more on our help page!

More from @S4mmyEth

Apr 2
Artificial Intelligence (AI) is predicted to replace 300 million jobs.

Let's use the tech to expedite the real utility & adoption of NFTs.

Here are some ideas.🧵(1/11) Image
My recent thread reiterated the importance of collaboration.

Share ideas & leverage tools to drive the space forward faster.

Projects require a lean structure to sustain their runway.

Why not leverage the FREE AI tools at our disposal to do so?


🟡Writing Basic Code

Chat GPT4 Prompt:

Write me some Solidity code for an Ethereum NFT project containing 5000 items in the collection.

Output: Basic code that can be tailored based on the prompt.

/3 Image
Read 13 tweets
Mar 20
Microsoft (MS) partnered with OpenAI as their exclusive cloud provider through Azure.

They've announced they are integrating a crypto wallet into the MS Edge browser.

Colossal levels of untapped value are unlocked when you combine this tech.🧵(1/14) Image
Before I explain, it's important to outline Microsoft's prior acquisitions.

'16 Linkedin ($21b)
'21 OpenAI (Estimated >$10b)
'22 Blizzard Activision ($69b)
'23 Crypto Integration

🔹Social Media


What does this mean?

There are:

🔹875m users on Linkedin.
🔹100m users on ChatGPT (OpenAI).
🔹45m monthly active users on Blizzard.

The crypto wallet integration into their Edge browser will permeate all of these networks.

Recruitment fees.
Chatbot payment plans.
Gaming currency.

It's huge.

Read 15 tweets
Mar 20
The Arbitrum airdrop is due to land this Thursday.

Using $MATIC as a benchmark we could see an initial $ARB price pump to $14.

Simple supply & demand.

Here's how.🧵(1/18)
Arbitrum is a layer 2 scaling solution for Ethereum.

It leverages the decentralization of Ethereum to ensure the underlying infrastructure is secure.

Polygon does the same, but with an Ethereum Virtual Machine (EVM) compatible side chain.

It's a useful benchmark.

Let's establish the supply/demand of each token to forecast its price.

Max supply is only relevant if the token is fully vested/unlocked & is available on the market.

They both have a max supply of 10b tokens.

But $MATIC is fully vested, with minimal locked for staking.

Read 19 tweets
Feb 22
The Coinbase NFT integration with ChainLink is rumored to be dropping tomorrow.

What does this mean for the NFT space?

Read this. 🧵(1/10) Image
Coinbase NFT was an anti-climax last year.

This is their redeeming moment.

A raft of new liquidity could enter NFTs.

The Blur airdrop has injected some liquidity back into the market.

But without new money, it's a zero-sum game.

Why is this different?

/2 Image
ChainLink is an Oracle.

Oracles connect on-chain code & off-chain infrastructure to support dApps.

It enables more accurate pricing for developers to build out their solutions.

More advanced derivative protocols perhaps?

Some applications.👇

/3 Source: ChainLink
Read 11 tweets
Feb 17
Opensea just dropped their response to BLUR's royalty policy.

Unsure about what's driving the dispute?

Don't worry I've got you. 🫵 🧵(1/14)
We all know about the BLUR airdrop farming that's prevalent.

Traders are raking in 70x their wash traded capital.


Project founders are feeling caught in the middle with their collections as cheap wash-traded assets.

It can't feel good.

Do these marketplaces even care about supporting artists?

Perhaps their focus is on an IPO or other liquidity event?


Read 15 tweets
Feb 17
Life as a degen.

Story time.

It all started with a fascination for the bright lights from the terminal.

The flickering candlesticks frequently alternate between red and green.

I didn't understand. But had an insatiable appetite for the truth.

The rabbit hole began.

I soon realized that 'chart-up' is good.

The chart turns red and cascades down, it's not so good.

I managed to accumulate enough pocket money to gather 0.1 ETH for my first play.

I hit big.

I was up 10x. An ETH integer. No Gwei, pure ETH.

The addiction had set in.

The market matured and the tools became more advanced.

The NFTs were coming thick and fast. Saturation was an understatement.

More offers than there were bids.

The undercutting had set in. A blood bath.

There were screams from the Discord trenches:

"Delist, Delist!"

Read 10 tweets

Did Thread Reader help you today?

Support us! We are indie developers!

This site is made by just two indie developers on a laptop doing marketing, support and development! Read more about the story.

Become a Premium Member ($3/month or $30/year) and get exclusive features!

Become Premium

Don't want to be a Premium member but still want to support us?

Make a small donation by buying us coffee ($5) or help with server cost ($10)

Donate via Paypal

Or Donate anonymously using crypto!


0xfe58350B80634f60Fa6Dc149a72b4DFbc17D341E copy


3ATGMxNzCUFzxpMCHL5sWSt4DVtS8UqXpi copy

Thank you for your support!

Follow Us on Twitter!