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The Blast layer-2 network is attracting increasing attention from the community, while critics call the project a pyramid scheme.
Blast is an ethereum-based layer 2 network launched by Tieshun Roquerre, aka Pacman, who is also behind the Blur nft marketplace.
Blast offers a native return model for ethereum and stablecoins, charging 3.4% and 8% respectively. However, up to a certain point, users were not even given the opportunity to withdraw funds, leading critics to call Blast a pyramid scheme.
Blast handles staking for its users, making it a natively yield-enabled Layer 2. As the network operates, it automatically links assets to the ethereum mainnet, where they are staked and begin earning interest.
The return on Blast users' deposits is guaranteed by staking eth on the Lido liquid staking protocol. For those who deposit stablecoins, the income is generated by the MakerDAO defi protocol. In this case, the income is accumulated in the project's stablecoin – USDB. Interest rates are cumulative, i.e. they are applied to the balance over time, not to the initial deposit. The model is based on the risk-free rate (RFR) return structure.
Explosive points and explosive gold
Blast Points and Blast Gold are added to deposits in Blast. Points accumulate on their own, but are additionally awarded for deposits, user invitations, and multipliers, which can be obtained for testing the first projects on the Blast blockchain.
Blast Gold distributes financial projects from the ecosystem to users to provide liquidity, and the amount of deposited funds has a more significant influence. The points and gold awarded to users were converted into BLAST tokens as part of the June 26 airdrop.
Blast offers two ways to earn points. First, users receive spins, for which they are awarded a random amount of points. Usually, it ranges from 100 to 2000. In rare cases, it can be more if the investor gets a super spin, which multiplies the amount of points earned by 2 to 9 times.
Secondly, users receive a percentage of the points earned by the investors they refer. Traders who register with the referral link will receive 16% of the points they earn, and their referrals will receive another 8%.
The explosion reaches layer 2
Blast quickly surpassed many existing layer 2 protocols. In just four months, Blast managed to attract several million user deposits. The network went live in late February and already has approximately 280,000 monthly active users.
Blast quickly surpassed many existing layer-2 solutions in terms of the number of bridge deposits. By the time the platform launched its token on the exchange, it had attracted a total value locked (TVL) of user assets of over $2 billion.
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Fraud allegations
As part of the airdrop campaign, 17 billion tokens were distributed (17% of the total issuance). Of this amount, 7 billion tokens went to holders of Blast Points earned for providing initial liquidity in the form of eth or USDB stablecoins.
The other 7 billion BLAST were distributed among users who receive Blast Gold as a reward for interacting with decentralized applications (dapps). Three billion coins were earmarked for the Blur Foundation, which will then be distributed to the Blur nft marketplace community, including through airdrops.
However, shortly after the airdrop was launched, the crypto community accused Blast of fraud.
For example, user Christian2022.eth claimed that Blast is a scam and that its founder is a serial fraudster. According to him, Pacman was convinced of the fraudulent nature of the platform from his own experience. The investor complained that he did not receive enough tokens during the airdrop.
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Many people also drew attention to the active distribution of phishing links on the network, which the attackers promoted under the guise of Blast resources. x users were the most affected by the scammers. Fake ads appeared on social networks, the authors of which claimed that the airdrop had supposedly already started. The attackers suggested that those who wanted to receive coins should visit a third-party site.
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What's next
The developers plan to deploy their application and crypto wallet infrastructure on the Blast network, which, in theory, will compete with the MetaMask wallet.
Blast developers compare the competition's approach to that of the Android operating system, suggesting that layer 2 solutions are too focused on optimizing their network and rely on third parties to create an ecosystem. Blast, on the other hand, plans to fully optimize both the infrastructure and the application set.
According to the developers, the incentive system of the first phase of Blast targets categories of blockchain applications that already meet market demands: decentralized exchanges (DEXs), including those supporting derivatives or lending protocols.
The developers claim that the profitability calculation system will attract even more users to the project. The incentive system already worked for Blur when it quickly surpassed arch-rival OpenSea, and Rokerr is determined to try and make Blast the leader among layer-2 networks.
Why is everyone talking about Blast?
Blast attracts the attention of a wide audience due to its innovative features and additional earning opportunities. The project is an innovative layer 2 solution for ethereum, which has huge development potential. Its ability to offer returns for freezing funds attracts many users and investors.
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