Ban District One from Gold distribution

Gold Feedback
1

This is a delicate subject, and as a blast user and holder, I dont want to make a move that would harm our ecosystem. Nevertheless, something must be done in respect to malicious actors. In this small text, I intend to present some reasons why Blast should not consider District One for gold distributions. Please, give me your feedback.

In a tweet, I exhibited several red flags concerning District One:

  1. The site was built without proper security so that bots can take advantage and drain people’s funds.
  2. District One constant miscommunication or no communication at its twitter.
  3. Non existence of a support system for users.
  4. District One sent gold to its own wallet before the airdrop.
  5. District One changes the rules about its meme coin contest without any warning at its site (one day of gold distribution was simply cancelled), with only an announcement on twitter without enough time to get to all users.
  6. District One changes it previous announced mini eth jackpot, that was going to be given to the top performing coins of its meme lab, but they decided to change and give to all people who minted their free NFT (they even expressly invited sibyls to mint too).
  7. District One does not answer any social network.
  8. District One Meme Lab allowed for bots to drain the coins produced at the platform. They made a supposed “fix” but bots keep draining all the funds.

These are important red flags concerning an app that is going to distribute gold because distributing gold is a way of legitimating an app. If a user sees an app is distributing gold, this means that Blast thinks that app is legit. If. Blast thinks so, the user tends to think so too. And it is not interesting for Blast to legitimate an app with so many problems. My main point is that when an investor, like me and my team, who invested 2.5 eth in 2 coin launches in the platform, and we have our money stolen everyday, without any support or significant action from the app, we dont only distrust the app, but we distrust the entire chain.

If you want to know more about what happened and is happening right now on District One, with bots draining the funds, please, check it out below. There could be an overwellming amount of information, but it is very informative about what is happening on District One:

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100% Agree. This was by far my worst experience in Blast. For epoch 2 they switched it up and gave a 70/30 split to hosts. Then they got rid of that for epoch 3 and started the meme thing which diverted gold from the platform we all had been heavily engaged with. On top of switching the game up it is very much my suspicion that they used alt accounts to game the gold distribution through meme for themselves.

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Thank you so much for answering, Kuruptshun. I felt the same, as I was being scammed. The worst thing, I think, is that it makes blast as a whole to be tainted. After this D1 experience, I moved more than 1 eth from blast to ethereum again, and moved it to my ledger. I think I will never see blast apps again with such trust. This is what I thought that blast should ban D1 from gold, as a way to tell the blast community it is seeing what is happening and disagrees with D1 behavior in the gold and the bot crisis.

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As a blast and D1 holder, I do not agree with the proposal. It’s an interesting idea, that is, when it was on hype everything was fine, but today you say it is necessary to deprive the project of gold distribution, sorry, but what should those who have already invested in this blast ecosystem project do? I believe that there are only 2 options possible here: 1) Blast needs to distribute the gold to the victims and close access to gold for the project 2) Don’t change anything and make the gold as it was before. Otherwise, you reduce blast to zero value and make it even worse for blast and D1 holders.

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Thank you so much for your opinion to my suggestion. I am very grateful. It is good to be able to talk with people who disagree with you in a respectful manner. But let me start by telling you how I agree with you: I really agree with you that ban D1 from gold distribution can harm D1 users, but I would say that if D1 gets gold, this could harm users even more. For example, I invested 2.5 eth in launching 2 meme coins on district one. Because they changed the gold competition without warning at the site, I invested a large amount of money for me on the last meme coin (a bit more than 1 eth), and there was no gold as a reward. If there was no gold from the beginning, I would never have invested 1 eth and lost large part of it in the token launch. So I believe that the many changes D1 is used to make in its gold distributions can harm more than not having gold. If D1 is now telling the truth, it will distribute 42 eth among the community who mint Momentos. But you should know that these 42 eth were supposed to be given to the top performing coins on meme lab, and I worked for 2 weeks in the most of me to develop the coin and be able to participate in what they called Mini Eth Jackpot. I spent more money to develop the coin in order for it to be one of the top performing ones. But what happened? D1 decided to change again, and to be a top performing coin was not important anymore, so all my work for the gold and eth promised - and all my money spent - was for nothing. A company like this cannot have gold to distribute, given it has already shown an unsuccessful history.

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Well, then the captains should be deprived of gold because the price of their ships fell 4-5 times, someone bought 10-50 ships each and lost 10 Ethereum. Fantasy, too, let’s deprive everyone of gold of them, many lost the same way, but almost everything fell and what to do now? If d1 does not receive gold, then what do you propose to do with the shares of d1 rooms in this case? Ethers were also invested in them. Why does the blast stop producing d1 gold and does not make any compensation in the form of gold? If there is no compensation then there is no need to change anything, then you need to issue gold d1. And the community itself will be able to decide to buy or sell within the d1 project. Deprivation of gold for d1 without compensation - to me this looks like deception of the blast community. I will be strictly critical of blast in this case.

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I wrote to support in discord OpenLeverage and they always answered me. The price of all projects has dropped significantly, this is the market. I can’t agree with many things. I understand that my disappointment is exactly the same, but absolutely all projects fell, including the main blast token itself.

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So, you are alluding to different reasons than the reason that is making me defend that gold should not be distributed to District One. The reason why I think gold should not be distributed to District One is that they committed FRAUD or something very similar, according to different laws around the world.

Thus, if the price of an asset changes not because of fraud, but due to market fluctuations, this is very different. When we buy a digital asset, erc20 or nft, we know that it is a very volatile market, and we can have winning and losses. This is normal on crypyto world, and no project should be deprived of gold JUST because their asset price decreased. In fact, concerning District One, I even dont know OLE price and everything I am talking here does not concern the increase or decrease of any asset price.

I am talking about suspicious behavior and fraudulent actions, and the relation with legitimacy by Blast. Blast cannot legitimate these kinds behaviors because it would be harming not just D1 users, but all the users in the ecosystem, given it would provide less trust for the apps with gold.

In this case, what would I propose? First, I must say that I am not part of the team, so my proposals are not binding. Having said that, I would say they have 42 eth to giveaway and they have their own token, OLE, to send as a reward to users. They dont need gold to reward users. They can do it for themselves. But will they do it? This, I dont know; and I also do not have trust in them enough to stick around and see what they are going to do.

I think the main part of your second argument is this one:

I am not sure if I quite followed your reasoning.
Can you make it more explicit for me?

Gold is meant to be given by Blast to apps, not to people. For its turn, apps must give all gold to people. So here we have 2 different distributions with 2 sets of different reasons.

  1. Gold from Blast to apps - reasons - legitimate an app, bring more active users to the ecosystem, bring more eth bridged into Blast through the apps, etc…
  2. Gold from apps to users: reward users for actions inside the app.

So when you tell me that Blast should compensate people, I think you mix 1 and 2. Blast does not have the reasons it has to keep distributing gold to District One, given a blockchain should not legitimate bad behavior from apps. But I would say that District One should compensate its users, given D1 many distribution changes (of gold and eth) without the proper notification at the site and also the bot problem they up to now didnt deal properly affected the users in a bad way. We should ask compensation not from Blast because it was not Blast who caused these problems, but District One itself. And things get even worst, look:

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I used many apps constantly during this time before the TGE, like: District One, Spacebar, Blastr, Mintify, Blur, Particle, Thruster, Blasterswap, Wasabi, Juice, Brahma, and maybe some others I cannot remember the name now. I bought a fair number of NFTs from lots of projects. I understand market prices fluctuates, and I am not asking to not distribute gold to any of them (except for D1), even the ones I disagree with their distribution system, as Blastr (which gives a lot of rewards for huge projects, and doesnt care much about small users). I think it is their decision how to build a system to gold distribution, even if this system is not the best for me. I fight for their right of doing so, even when I disagree with the actual system developed. Nevertheless, my reasons concerning District One are legal ones: they deceived their users.