Blast (BLAST)

Layer 2 Scaling and Transaction Efficiency

Blast is an Ethereum Layer 2 (L2) solution that improves Ethereum's scalability by increasing transaction speed and lowering costs. It uses optimistic rollups to handle transactions off the main Ethereum chain, making it faster and cheaper for users and developers.

Native Yield Generation

Blast uniquely offers native yield on ETH and stablecoins, providing users with automatic rewards—around 4% yield on ETH and 5-8% on stablecoins. This yield comes from ETH staking and Real-World Asset (RWA) protocols integrated into the network.

Developer Incentives and Revenue Sharing

Blast shares gas fee revenue with decentralized applications (dapps) programmatically. Developers can keep this revenue or use it to reduce gas fees for their users, enabling new business models and encouraging dapp growth.

Ecosystem and Use Cases

Blast supports decentralized finance (DeFi), NFTs, gaming, SocialFi, and tokenization of real-world assets. Its native yield and revenue-sharing features help build a vibrant ecosystem where users earn passive income and developers get financial incentives.

Community and Governance

BLAST tokens are used for governance, staking, and transactions within the ecosystem, allowing holders to participate in decisions about protocol upgrades and yield strategies.

Cross-Chain and Asset Integration

Blast facilitates bridging assets between different blockchains, enhancing interoperability and allowing users to move assets seamlessly across networks.

Pros of Blast

• Native Yield: Blast offers native yield on Ethereum (ETH) and stablecoins, providing 3.4% yield for ETH and up to 8% for stablecoins without requiring active staking.
• High Transaction Speed: It processes thousands of transactions per second, much faster than Ethereum’s mainnet, leading to quicker confirmations and smoother user experience.
• Auto Rebasing: ETH and Blast’s stablecoin USDB balances automatically adjust to reflect earned yield, simplifying rewards for users and developers.
• Developer Support: The Big Bang program funds and mentors developers, encouraging innovation and growth in the Web3 ecosystem.
• Community Focus: 50% of tokens are allocated for community initiatives, including a large airdrop, promoting user engagement and ecosystem expansion.
• EVM Compatibility: Blast is compatible with Ethereum smart contracts, allowing easy deployment of existing decentralized apps without major changes.
• Deflationary Mechanisms: Token burning strategies help increase scarcity and potentially boost token value over time.
• Integration of Real-World Assets: Blast supports bridging real-world assets to blockchain, expanding use cases beyond typical crypto applications.

Cons of Blast

• Price Volatility: BLAST token price has experienced significant declines (over 97% from all-time high), reflecting market pessimism and high risk.
• Sustainability Concerns: Critics worry that aggressive incentive programs may cause short-term inflated activity rather than long-term organic growth.
• Controversy and Criticism: Some community members have raised doubts about the project’s trustworthiness and staking program setup.
• Complex Tokenomics: Detailed tokenomics and long-term sustainability plans are not fully transparent, which may concern some users.
• Market Underperformance: BLAST has underperformed compared to the broader crypto market and similar smart contract platforms recently.
• High Risk: The project is considered high-risk due to market uncertainty and price fluctuations.

This summary highlights Blast’s unique features like native yield and fast transactions, alongside challenges such as price volatility and community skepticism.

Founders of Blast

Blast was founded by Tieshun Roquerre, also known as "Pacman." He is well-known as the founder of the popular NFT marketplace Blur. Pacman has a strong background in decentralized finance (DeFi) and NFT marketplaces, making him a prominent figure in the crypto space.

Investors in Blast

Blast has attracted investment from several notable sources:

• Core Contributors: 25.5% of the total token supply (25.5 billion tokens) is allocated to core contributors who have played key roles in developing the Blast ecosystem.
• Network Investors: 16.5% of the tokens (16.5 billion) are reserved for investors who have supported Blast’s initiatives.
• Prominent Firms: Blast has received significant investment from well-known firms such as Paradigm and Standard Crypto.
• Funding Rounds: The project has raised funds through venture rounds, with Standard Crypto being one of the most recent investors.
• Presales: Some ecosystem projects like BlastUP have raised over $5 million in presales, attracting early-stage investors interested in the Blast network.

These investors help support Blast’s growth as an Ethereum Layer 2 solution offering native yield features and a growing ecosystem.

Halal Status of Blast

Blast is a Layer 2 Ethereum blockchain platform designed to generate yields through staking and serve as a scaling solution. Its halal status depends on whether the project aligns with Islamic finance principles, such as avoiding interest (riba), excessive uncertainty (gharar), and unethical activities.

Reasoning

• Many scholars agree that crypto projects can be halal if the underlying project is halal and provides real-world utility.
• Blast’s staking mechanism, which generates yield by supporting the network, is similar to Proof of Stake systems considered halal by some scholars.
• The project is still in early phases with some details undisclosed, so full halal certification depends on transparency and compliance with Shariah principles.
• Overall, if Blast’s tokenomics and use cases avoid prohibited elements like riba and excessive speculation, it can be considered halal.

Answer: Yes, Blast can be halal if it meets Islamic finance criteria, especially regarding its staking and utility functions.