Clarifications on Blast’s Operations and Yields

Tieshun Roquerre, also known as Pacman, the founder of Ethereum Layer 2 project Blast, has responded to various concerns and criticisms about the platform, including accusations of it being a Ponzi scheme. He emphasized that Blast’s high yields are sourced from legitimate platforms such as Lido and MakerDAO.

Blast’s Strategy and Paradigm’s Role

Following the launch, Roquerre disclosed that investor Paradigm had suggested changes to Blast’s go-to-market strategy. He insisted that Paradigm had “zero involvement” in Blast’s launch strategy but had recommended post-launch strategy alterations.

Invite Rewards and Community Growth

Addressing the invite rewards system, Roquerre explained it as a strategic initiative to encourage community growth, rather than a marketing gimmick. He rebuffed comparisons to pyramid schemes, asserting the system’s purpose in rewarding users for contributing to the ecosystem’s expansion.

Blast’s Security Measures

In response to security concerns, Blast clarified its use of a multisig wallet controlled by five people. The project employs a nuanced multisig model, ensuring each signing key is kept in cold storage and managed by geographically distributed, technically adept signers.

Rapid Growth of Blast

Since its announcement, Blast has attracted over $400 million in bridged assets. The platform, not yet live, has seen significant interest from investors, evidenced by substantial deposits, including a single deposit of 10,000 ETH.

Concerns Over Blast’s Model

Despite its popularity, Blast has faced skepticism over its model, with some traders labeling it as a potential Ponzi scheme due to its referral system and promise of high, “risk-free” yields. Critics have also questioned the security of its transaction execution process, which requires signatures from three out of five anonymous keyholders.

Roquerre’s Defense of Blast’s Model

Roquerre defended Blast’s approach, highlighting that it democratizes access to higher yields and operates transparently. He also pointed out the inherent risks in staking and investment, countering claims that staking is entirely “risk-free.”