Blur Founder Addresses Rumors Surrounding Blast, Community Lashes Out

Bits Logics Team . 26th Nov 2023
  • Blur and Blast founder Pacman responded to several speculations about Blast.
  • He explained that the yield Blast provides comes initially from Lido and MakerDAO.
  • Despite the lengthy explanation, the crypto community was still not pleased with the Blur founder’s response.

In response to several speculations, Blur and Blast founder Pacman took to Twitter to “set the record” straight. The founder of Blur points out a meme circulating across several digital public spaces that highlights Blast as a “Ponzi.” To be specific, he begins to explain and help the crypto community understand Blast.

At first, Blur’s founder stated that the memes revolving around calling Blast a Ponzi are understandable, as the yield that Blast provides users can feel “too good to be true.” He further explained that the yield Blast provides comes initially from Lido and MakerDAO.

Lido yield comes from ETH staking yield, which is part of Ethereum’s Proof-of-Stake consensus mechanism. Meanwhile, the yield for ETH in this case is coming from Ethereum itself. When it comes to MakeDAO, the yield comes from on-chain Treasury Bills (T-Bills).

Blur’s founder further highlighted, “These yields are not unsustainable. They are a core component of the on-chain and off-chain economies.” “The reason the yield feels too good to be true in Blast is because Blast makes this yield the default for everyone. It gives users yield that was hiding in plain sight. In effect, democratizing higher yields”

Another concern Blur’s founder observed that the community had was about Paradigm being responsible for Blast’s launch. However, he clarified, “Paradigm had zero involvement in Blast’s GTM. Candidly, they probably would have asked me to change a lot about Blast’s launch if they had been involved.”

In regards to Blast’s invite rewards, which the community compared to a pyramid scheme, Pacman highlighted, “Invite systems have been around for a long time.  I don’t like marketing mechanics just for the sake of “growth.” Given that, you may wonder why Blast has an invite mechanism.”

“Stepping back a bit, Blast would be nothing without its community. Our goal as the first contributors to Blast is to grow the on-chain economy with the highest-yield L2 possible. It’s going to take a village to enable that vision.”
Despite the detailed explanation, the community was still not pleased. Several crypto community members flooded the comment section, still claiming it was a Ponzi. In fact, one user also stated, “you managed to address things without addressing anything.”