Blur announces zero transaction fees for NFT trading and lending, netizens ask: "How do you make money then?"

The NFT trading marketplace Blur, under the mechanism of providing liquidity airdrop rewards, has generated a significant amount of trading volume and liquidity. This system has its pros and cons for users engaging in liquidity mining. Blur also led to the claim by the well-known "big brother" Huang Licheng that he is exiting the NFT market. Yesterday, Blur announced the launch of the sustainable lending protocol Blend, along with a series of fee-free policies. However, this has also raised questions among netizens: How do you make money then?

Blur Calls Out: NFT Trading, Lending Without Fees

Blur announced on 5/2 that its protocol does not charge any transaction fees. This includes Blur's NFT marketplace and Blur's lending protocol Blend.

It also notes that interest on the lending portion still needs to be paid, but the interest will be fully given to the lender.

PSA

Blur fees by protocol:

Blur Marketplace: 0% fees for traders

Blur Lending (Blend): 0% fees for borrowers and lenders

Note that borrowers still pay interest on loans based on what lenders offer. 100% of that goes to the lender.

— Blur (@blur_io) May 2, 2023

With No Charges at All, How Does Blur Make Money?

"How do you make money then?" a netizen asked. After all, the team's operations also require funding.

Blur responded that they do not charge any fees. Holders of the BLUR token can change key parameters of the NFT marketplace and lending protocol, including fee parameters, after 180 days. Blur indicates that the BLUR token serves as a governance utility that can, through resolutions in the future, allow Blur to collect fees.

In addition to Blur's explanation, it is also necessary to consider that zero transaction fees are a competitive advantage for Blur in the market. Changing the fee structure may be disadvantageous to product competitiveness. Blur also collaborates with market maker Wintermute, which provides a source of income in the secondary market token sales. Blur may also participate in the lending market and collect interest.

Further consideration: Some have discussed that if Uniswap were to start charging fees, it might lose its competitiveness.

In the traditional world, free products are often accompanied by advertisements, while in the Web3 world, the cost of free products is also supplemented through token flows and financing.

Blur does not charge any fees. BLUR holders can change key parameters of the marketplace and lending protocol after 180 days, including fee parameters.

— Blur (@blur_io) May 2, 2023