The highly anticipated native token of the NFT marketplace Blur, BLUR, was listed on major exchanges and airdrop claims opened on February 15 at 2:30 AM UTC. This marked the conclusion of a much-hyped airdrop event that had captivated the NFT community.
As a key driver behind the recent uptick in the NFT market, Blur has positioned itself as a serious competitor to the industry leader, OpenSea. During last year's NFT royalty debates, Blur strategically positioned itself by allowing optional royalties—enabling users to set their own royalty rates—while incentivizing royalty payments through token airdrops. For instance, buyers who set royalties above 0.5% received additional airdrop rewards. These moves helped Blur temporarily surpass OpenSea in trading volume.
The airdrop did not disappoint; it created significant wealth effects. According to Twitter users, the largest recipient received 3.2 million BLUR tokens, with approximately 25 individual wallets each receiving over a million BLUR, creating instant millionaires.
Amid the celebratory atmosphere, Blur seized the moment to escalate the royalty competition. The day after the token launch, Blur announced a new royalty policy, which included a recommendation for NFT creators to block OpenSea. Under the new rules, any NFT project that does not use OpenSea will have full royalties enforced on Blur. This is a clear strategic move against its largest competitor, initiating a new chapter in the royalty battle.
Breaking Down Blur’s New Royalty Policy
Blur’s updated approach offers four distinct options for creators:
- If a collection does not use a blocklist to prohibit zero-royalty or optional-royalty marketplaces, Blur will enforce a minimum 0.5% royalty. This provides a baseline protection for creators, whereas OpenSea remains optional.
If a collection uses a blocklist, it cannot receive bids on Blur but can still be traded via the Seaport protocol. These collections can earn royalties on both OpenSea and Blur, but Blur will only enforce the minimum 0.5% rate. This has already been confirmed with projects like A KID Called BEAST and Sewer Pass, which saw their royalties reduced to the minimum.
However, Blur’s use of Seaport as a backdoor for new collections means that while all collections were previously eligible for "full royalties" on both platforms, they now receive only the minimum 0.5% on Blur. Many creators were not informed of this change in advance, making it a silent but significant shift.
- The third option is the one Blur actively recommends: creators block OpenSea. By doing so, they can earn full royalties on Blur but cannot list on OpenSea. This tactic mirrors the strategy OpenSea originally used against Blur, turning the tables on the marketplace giant.
- The final proposal is a mutual de-escalation: both platforms remove their blocklists. Blur positions this as a peace offering, advocating for a creator-first approach where royalties are protected across all platforms.
From Passive to Aggressive: Blur’s Strategic Pivot
Historically, Blur adopted a more conciliatory stance toward OpenSea, seeking to resolve conflicts despite being blacklisted. Even as Blur’s trading volume and user engagement neared OpenSea’s, the prevalence of wash trading and a smaller user base prevented it from overtaking the established leader.
However, as Blur cemented its position as a top NFT marketplace and anticipation grew around its token—especially as OpenSea continued to delay launching its own—expectations for BLUR’s value soared. Three rounds of airdrops significantly increased user engagement, with large holders (whales) dominating activity and briefly boosting NFT trading volume. This surge likely gave Blur the confidence to adopt a more aggressive strategy.
A Calculated Strategy for Market Dominance
Blur’s new royalty policy is a carefully orchestrated move:
- First, Blur leveraged OpenSea’s own Seaport protocol to develop a new marketplace, solving the problem of new projects being unable to trade on Blur.
- Second, although optional royalties reduced earnings for some creators, Blur compensated them through airdrops. For example, the NFT project CirrusNFT reported missing out on $13,700 in royalties but received $18,500 worth of BLUR tokens from the creator airdrop, offsetting the loss.
- Finally, Blur delivered the decisive blow: guaranteeing a minimum 0.5% royalty in all cases, and offering full royalties to those who block OpenSea.
This three-pronged approach effectively appeals to both creators and traders. By using airdrops to drive engagement, Blur has enhanced liquidity and trading volume across the NFT market, capturing significant market share from OpenSea and other competitors.
Market Response and Competitive Landscape
Short-term data indicates that Blur’s trading volume has surpassed OpenSea’s since the beginning of February. Recently, NFT trading volume surged to 30,409.79 ETH, a three-month high. Blur also recorded 32,773 NFT sales and 9,689 unique users, both three-month peaks. Its bid pool lock-up value reached $84 million, an all-time high.
With Blur Season 2 on the horizon, many wonder if rewards will be as substantial as the first season. While the long-term sustainability of Blur’s popularity post-airdrop remains unclear, its recent strategic moves have solidified its competitive advantage.
Blur has openly declared war, and if OpenSea responds dynamically, the NFT market is set for intensified competition and innovation.
Frequently Asked Questions
What is Blur’s new royalty policy?
Blur’s updated policy offers creators four options, ranging from enforcing a minimum 0.5% royalty to recommending that creators block OpenSea to earn full royalties. The policy is designed to give creators more control while incentivizing loyalty to Blur.
How does Blur compensate creators for lost royalties?
Blur uses token airdrops to offset lost royalty income. For example, some creators received BLUR tokens equivalent to or greater than the royalties they missed, making participation financially viable.
Can NFTs blocked on OpenSea still be traded on Blur?
Yes, using the Seaport protocol, blocked NFTs can still be traded on Blur, though they may not be eligible for full royalty benefits unless OpenSea is explicitly blocked by the creator.
Why is Blur encouraging creators to block OpenSea?
This strategy mirrors OpenSea’s earlier tactics against Blur. By encouraging creators to block OpenSea, Blur aims to redirect market activity and volume to its own platform, strengthening its position.
What impact has Blur had on NFT market volume?
Blur has significantly increased trading activity, recently reaching a three-month high in sales volume and unique users. Its aggressive airdrop campaigns and royalty incentives have driven this growth.
What can we expect in Blur Season 2?
While specific rewards are not yet disclosed, Season 2 will likely continue incentivizing user engagement through tokens and royalties. For the latest updates and strategies, 👉 explore more on advanced NFT platforms.