Executive Summary: As builders and users of the Blast ecosystem who have collectively spent thousands of hours engaging with and providing liquidity on Blast, we seek a proposal for feedback on behalf of all Blast users who want to prevent a monopoly from forming, discouraging consumer-beneficial competition and alternatives due to asymmetric reward incentives.
Motivation: We are considering submitting a BLIP for Blast Token holders to vote on eliminating “Loyalty” as a metric on dApps to prevent monopolies from forming, which would impact the growth of the Blast Ecosystem.
Proposal Details: Eliminate loyalty-related penalties across the dApp ecosystem: Forcing users to use a single dApp eliminates competition, especially when a dApp, such as Blur, is a native Blast product managed by a similar team.
We propose eliminating loyalty as an acceptable dApp variable for allocating incentives and giving Blast users the freedom to use multiple products without worrying about potential penalties and disqualifications from incentive rewards.
According to the latest announcement, Blast’s vision is to build the Fullstack Chain. If loyalty acts as a barrier for brands and developers and incentivizes favoritism for any individual product, then a competitive environment that pushes innovation to the on-chain economy and Blast will never be formed, and the victims would be its own users facing monopolistic practices.
Implementation: We propose that any dApp featuring a ‘Loyalty’ metric that reduces user incentives or rewards if they engage with other dApps have their Gold distribution rewards heavily reduced or set to zero for upcoming distributions.
Strongly support and I’ve spoken out about this previously
For context:
Mintify was one of only two NFT exchanges on Blast for months. They held the entire NFT ecosystem on their shoulders
Blur launched and then penalized people for listing on Mintify/Element with their “loyalty” variable
Loyalty makes sense on ETH Mainnet since Blur has to compete with Magic Eden, OpenSea, etc. But makes no sense on Blast because we all win if the Blast ecosystem is competitive and open
Tend to agree. The first NFT marketplace I used on Blast was Mintify.
As time moved on, I was using Blur more (even though not a farmer) mainly because of the visibility it got I guess.
“Eliminating Loyalty” might need a bit rework/wordsmith. Loyalty points have been around forever, from Subway sandwiches and SportClip haircuts to credit card miles and bonuses. There will always be Loyalty Points everywhere.
That said, your last statement under Implementation (reduces/negatively impacts, etc) is worded well and drives the point across loud and clear. Good luck.
[Edit] One last question, who will be the judge and jury for ongoing oversight. Or the criteria-builders and enforcers?
@Mintify I see where you are going, and here are my additional thoughts.
The Blast ecosystem holds immense promise. It’s a vibrant space brimming with innovative dApps, passionate builders, and a community eager to explore the future of DeFi. However, a recent development casts a shadow over this bright future: the introduction of “loyalty” as a metric for allocating incentives.
This proposal, while seemingly innocuous, carries the potential to stifle competition and inadvertently create a monopolistic environment, ultimately harming the very users and builders it aims to serve.
The Looming Threat of Monopoly
The concept of “loyalty” as a reward factor within a decentralized ecosystem is inherently problematic. It incentivizes users to exclusively engage with a single dApp, creating a “walled garden” effect. This can lead to:
Reduced Innovation: When competition is stifled, there is less pressure for dApps to constantly improve and innovate. This can result in stagnant development and a lack of compelling features that truly benefit users.
Limited Choice: Users are forced to choose between a limited set of options, reducing their ability to find the products and services that best suit their needs. This can lead to a feeling of being trapped within an ecosystem, with little opportunity to explore alternatives.
Asymmetric Power Dynamics: The dApp that controls the loyalty metric gains an unfair advantage, potentially manipulating the market and holding users hostage to their terms. This can lead to a concentration of power within the ecosystem, undermining the very principles of decentralization.
The Case for a Fair and Open Ecosystem
The Blast community thrives on the principles of decentralization and open access. By promoting a diverse and competitive landscape, we foster:
Innovation Driven by Competition: When dApps are constantly vying for users, they’re forced to deliver the best possible products and services. This healthy competition drives innovation and leads to a more robust and user-friendly ecosystem.
User Empowerment: Users should have the freedom to explore different dApps without fearing penalties or being locked into a single platform. This empowers users to make informed decisions and choose the best tools for their needs.
Balanced Power Dynamics: By eliminating loyalty as a reward factor, we ensure that no single dApp gains an unfair advantage. This fosters a level playing field where all builders can compete on merit and innovation.
Moving Forward
We believe this proposal represents a critical step towards creating a truly thriving Blast ecosystem. By fostering a competitive environment where innovation flourishes, user choice is paramount, and power is distributed, we can build a truly decentralized and sustainable future for DeFi. Let’s work together to ensure that Blast lives up to its promise as the “Fullstack Chain,” where everyone benefits from a healthy and vibrant ecosystem.
It’s time to break down the walls and build a Blast ecosystem that thrives on innovation, user empowerment, and a truly open and competitive spirit.
Edit 1, meh not necessary to re-iterate the points in a forum.
i don’t think it’s in our best interest to declare war or upset who literally built the blockchain and the token we’re voting with.
Especially in the first week.
It’s sad in this situation for some dapps (yours), but as a $BLAST holders we can’t support something that may go against our bags.
absolutely agree on this proposal of it goes through.
loyalty slashing (if it is) should not be a thing.
users should not be penalized for using different products or apps using blast L2.
agreed on this.
