Split Capital Proposes New Fee Structure to Blur

Split Capital, a liquid token hedge fund, announced on Monday that it has submitted a governance proposal to Blur, urging the NFT marketplace to implement a new trading fee structure of 0.5% while also eliminating the enforcement of a 0.5% creator royalty.

> "To date, the Blur NFT marketplace protocol has had 0% marketplace fees while enforcing 0.5% minimum creator royalties," the proposal states. "We propose to remove enforced creator royalties and add a 0.5% protocol fee on every trade."

In late 2022, Blur surpassed OpenSea to become the largest NFT marketplace by trading volume, offering generous token rewards to active traders and maintaining 0% marketplace fees. This aggressive strategy disrupted the NFT market and negatively impacted OpenSea, which has since attempted to adopt a similar model by lowering fees and reducing creator compensation.

Split Capital's proposal also suggests the establishment of a fee council to modify the protocol fee as needed, stating, "We also propose the creation of a fee council that can change the protocol fee rate to be able to make quick adjustments based on market circumstances and the competitive landscape."

New Token Structure

Shortly after Split Capital announced the proposal on X, Blur's BLUR token saw a surge of over 15%, reaching approximately $0.29 as of 1:51 p.m. ET, according to The Block Price Page.

Additionally, Split Capital is proposing changes to Blur's tokenomics, suggesting a dual-token system to better manage utility and governance. "We propose to change the BLUR tokenomics to use two tokens to manage Blur’s utility and governance," the hedge fund stated. They propose designating BLUR as the utility token and veBLUR as a governance token in the form of an NFT.