Blur's point doubling period has been extended, and many NFT enthusiasts are dissapointed.
Basically, I too have a negative opinion of this decision.
Let me clarify the issue and explain the choices we have to make. twitter.com/blur_io/status/164...
First, wash trade for BLUR tokens and the resulting destruction of the floor is a major problem.
BLUR Farmers easily cut their losses due to token incentives.
Even if they lose some money, the tokens may allow them to recover.
(like this Leelee...)
The Farmers gradually devalue the floor, and the holder, seeing this, becomes anxious and sells the NFT to the Farmers.
Or, they line up that NFT on the floor and exit.
The investor cannot catch the falling knife.
The floor tends to be destroyed.
The biggest problem of all is that the project is getting very little in the way of royalties.
No matter how much the farmer trades, the project does not receive enough revenue.
Many projects will suffer from financial difficulties.
Are there any countermeasures?
The most fundamental and simple measure is to reactivate royalties.
NFTs, which require royalties, do not fit the economic rationale for farmers.
They can't trade them frequently, because they have to pay extra costs.
Also, resuming the collection of royalties would allow the business to continue to grow.
In many cases, however, smart contract migration is required to collect royalties.
Migration is a big decision for the community and may be difficult to agree upon.
Our #CNP has received community agreement for the contract migration.
In fact, 99% of holders are in favor of resuming royalty collection!
We feel this is astonishing.
But we also think it is reasonable for those who believe in the project.
I see several projects have already decided to migrate their contracts.
No one knows yet what decision is preferable.
But we are up for the challenge.
If we don't, it could break the project and the community.
When times are tough, gather the strength of your community.
I am confident that CNP will get us through these tough times.
The contract migration is scheduled for the end of April.
We will make an announcement as soon as the details are finalized.
The future is bright.
From Twitter
Disclaimer: The content above is only the author's opinion which does not represent any position of Followin, and is not intended as, and shall not be understood or construed as, investment advice from Followin.
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