BLIP2: Recommendation to Blast Foundation Regarding Use of the Points Program to Create Aligned Incentives

Progress Council
1

Proposal Title: Recommendation to Blast Foundation Regarding Use of the Points Program to Create Aligned Incentives

Proposal Type: The Progress Council understands that this BLIP does not fall squarely within the enumerated categories in [Section 4] of the Governance Bylaws; however, the Governance Bylaws provide that the Progress Council is tasked with serving as a steward for the Tokenholders. As such, the Progress Council feels that the Foundation should implement mechanics that incentivize individuals to hold $BLAST and to meaningfully participate in the Foundation’s governance processes. As such, it’s important for the Blast Foundation to consider distributing points to $BLAST tokenholders.

Executive Summary: The Blast Foundation tweeted that next week they are providing additional details on Phase 2 Rewards. Ahead of distributing details, the Progress Council wanted to share its thoughts on finding ways to create a more engaged holder base through the distribution of points to holders of the $BLAST token.

We recommend that to align incentives across the Blast ecosystem, the Blast Foundation should consider distributing points to $BLAST holders. As the Blast Foundation continues to build out the Points/Gold program, it’s important to consider eligible tokens other than ETH or USDB.

$BLAST governs pieces of the protocol, and encouraging individuals to hold it will create an engaged tokenholder base. By having a more engaged base, the Foundation’s governance will be more robust.

Motivation: The Progress Council wishes to create an engaged and robust tokenholder base that will drive value to the Foundation’s governance process. By distributing points to $BLAST holders, Blast ecosystem participants are incentivized to hold $BLAST rather than selling for other assets that earn points (i.e., USDB and ETH). The $BLAST holders can then use their tokens to propose or vote on governance proposals.

Proposal Details: The Blast Foundation’s partnership with Arcade Research (“Arcade”) allows certain Blast ecosystem participants to earn points via Arcade’s web application at app.blast.io (the “Blast App”). The Progress Council suggests that the Blast Foundation works with Arcade to implement points for $BLAST holders through the Blast App.

Implementation: The Progress Council recommends that the Blast Foundation consider an immediate implementation after the expiration of the tokenholder veto period.

Estimated Timeline

June 28 - Post Progress Council BLIP on the forum

July 1 - Progress Council Votes on Snapshot

July 1 - Foundation begins technical implementations with Arcade

July 1 - Foundation opens Snapshot veto period

July 8 - Veto window closes in accordance with [Section 6(b)] of the Governance Bylaws

July 15 - Foundation allows $BLAST holders to earn points through the Blast App

Associated Costs: There are no costs associated with this proposal. Any implementation costs associated with the Blast App will be borne by Arcade, and not the Blast Foundation.

75 Likes
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distributing points to $BLAST holders will boost engagement and participation + not having to staking for voting power is smart giving the community more control and not be super slow to make decisions.

however it’s important to ensure that voting isn’t influenced by a small group of people. at the same time, this could create a “Curve War” on Blast making things more exciting and competitive.

15 Likes
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Works for me. Let’s stack those points.

7 Likes
9

Can you amend the proposal so that on the 15th, points for $BLAST are provided retroactively to holders in addition to future looking?

7 Likes
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+1, retroactive distribution of points since TGE

6 Likes
12

:fire: Great proposal @jez! Aligning incentives with $BLAST is key! :+1: The Points program is a great tool for this, and expanding it to $BLAST holders makes sense. :clap: Let’s get this implemented! :rocket:

2 Likes
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The only thing to note here is if this proposal passes, points should be retroactively awarded based on everyone’s Blast balances from TGE until the implementation

3 Likes
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I’m not sure why this needs a formal vote and discussion, I think for obvious things like this the Blast team should just execute and release, Blast should move fast and furiously

13 Likes
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agree like why wait 2 weeks to ship this

2 Likes
19

Yeah so true… 16 july to apply at least… for a feature that should have been present from launch.

1 Like
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You ask too much for Blast team lol , never they will do this

1 Like
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Great proposal jez,

Currently points are distributed to ETH at a fixed rate and USDB at a variable rate depending on the price of ETH. To further incentivize holding $BLAST, I suggest a dynamic variable rate for holding blast based on the $ETH/$BLAST ratio with a ratchet-like mechanic that quickly moves to favor the community with rewards then slowly works it’s way back to a norm of 1.1x.

Ex: 1ETH is currently worth 150,000 $BLAST. In the event this number increases (more $BLAST for 1ETH because of $BLAST underperformance in the market) the multiplier incentive for holding $BLAST increases rapidly and then as the market stabilizes at that range or in the event that $BLAST recovers, the multiplier slowly trends back towards 1.1x

Hope that makes sense lol

10 Likes
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I think the multiplier should be much higher to further incentivize people to hold/own $BLAST, especially since locked token vesting is points based.

People holding $BLAST, and therefore continuing to support the ecosystem, should be entitled to vest faster than people who sold their token immediately at TGE.

I’d recommend a multiplier of 2-10x on $BLAST points accrual compared to the equivalent dollar value of ETH.

11 Likes
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Share the same sentiment with others. Earning points on $blast is a no brainer, and I’m not sure why this wasn’t even incorporated at TGE. Points should be retroactively awarded to June 26th (do we REALLY need this proposal to be open for 2 weeks? Kek)

The amount of points earned per $blast needs to either be comparable to ETH/USDB or a little bit higher of a multiplier (I’d say the latter would be best). I know we still need to reward liquidity providers, but if all we’re getting for holding blast is voting rights and extra points for S2, then there’s no real reason to hold this token.

MAYBE a way to further incentivize holding $blast is you get a multiplier on the gold you earn going forward for S1. I.e. use a linear approach, for every “x” amount of blast tokens held, it increases your gold multiple by .02-.05. This could apply for the gold earned through dapps AND through jackpot wins

2 Likes
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Great proposal.
I would go even further by proposing a multiplier specific to blast or some other type of incentive. Holding the native governance token should be more rewarding than holding any other asset inside the ecosystem.

2 Likes
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if this is too much of a lift, Blast deserves to go to 0 lol

1 Like
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Hi,

Thank you for the initiative to conceive of a proposal to add value to the tokenholders.

But I would like to ask if the council can provide us with a glimpse of the next step to incentivize builders and users of Blast ecosystem.

I would guess that if BLAST tokenholders are incentivized from the same pool of rewards (aka Points), then this could de-motivate simple users from actively participating in the ecosystem since it would dilute their share of the rewards.

May I ask if the council is keen to create a separate pool of incentives for builders / users? Or if there is an ongoing process within the council to incentivize builders / users that are un-interested in the governance of Blast.

I really hope that the currently vibrant ecosystem of Blast continue on without significant lost in TVL and remain one of the top ecosystem to onboard new users.

1 Like
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Ok I’ll say it. I don’t think this is a “no-brainer” like others have suggested.

My concern is that:

(a) the psychological base for Gold in people’s heads is ~$2 per Gold. There will certainly be less appetite for farming Gold this season and, as a result, most protocols will see less (incentive-driven) usage.

(b) On top of that, I assume most protocols will launch a token at some point. Some already have. I am concerned that adding points distribution to BLAST token holders will pull capital away from other tokens in the ecosystem, which could be detrimental to their teams and communities, especially those that are already bleeding.

(c) Season 1 of Gold was far from perfect. We’ve seen multiple teams quit and leave. We’ve seen teams break the “rules” and continue to get significantly more Gold than others. We’ve seen some projects get listed on the Multipliers and some left off. You get the point. Right now, we should be prioritizing incentive design that makes it more desirable for teams to want to come here and build and then stay. If 3-4 projects are getting 80% of the Gold per category, who in their right mind would want to come build here? IMO adding points to BLAST doesn’t move that needle.

Will projects with live tokens get the same points boosts? Will there be a more equitable Gold distribution? Will there be any form of compensation for teams who stuck around and are still building here despite getting significantly less Gold (or none at all) in season 1?

Until I hear clear, confident answers to the above, I don’t feel comfortable voting YES. It feels rushed and there are bigger problems to solve.

Just my opinion. I’m a pretty reasonable cat.

-Ham

3 Likes
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Can i have a suggestion, with these proposals that have been discussed, why not also make $BLAST token as the main token for transactions than eth?, implementation of moving the existing balances from metamask to blast wallet and then use $blast as the token for transactions with dapps?, in that way users will have to swap their eth to blast if they want to engage in dapp communities which then helps add funds to the token due to the swap at the same time having a burning mechanism for the blast token that way it helps stabilized the blast market and its value. While gaining points for holding $blast, the token’s value can then be managed atleast diminishing the pump and dump in the market due to the token supply.

1 Like
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Excellent suggestion!

Why I’m All In:

  • Aligns incentives: $BLAST holders earn points = :gem::raised_hands:
  • Boosts governance: More holders voting = smarter choices
  • Perfect timing: Ahead of Phase 2 Rewards :ok_hand:

The Impact:

  • $BLAST retention :arrow_up: (Est. 20% increase)
  • Diverse participation :arrow_up: (Target: 50% more voters)
  • Stronger community :muscle:
  • Long-term alignment :dart:

Addressing Concerns:

  • “What about dilution?” → More engaged holders offset this
  • “Is it fair?” → Yes, open to all $BLAST holders
1 Like