Note: This article comes from @0xFengwuxiang’s Twitter account, and is edited by Mars Finance as follows:

Why is Blast a feast for big investors and doomsday for small investors?

The whole network is cheering for Blast. I will only talk about Balst for small users. The TVL mining of Blast is essentially the same as LSD projects such as EigenLayer. Your TVL contribution is proportional to your score. Then it depends on your ability to attract people and the number of cards drawn by the team's luck.

Judging from the TVL and the amount of airdrops, I think Blast is not a form of profiteering, but a form of Defi Farming, which is not friendly to small investors.

First of all, in terms of TVL, Blast now has 250 million TVL, and it is expected to reach 1 billion. Assuming that the total value of Blast's final airdrop is close to ARB, we can calculate its total airdrop value of 1 billion.

ARB's TVL exceeded 2 billion at the time, and the final airdrop value was about 1.3 billion.

OK, first of all, we know that Blast will give a large share to Blur this time, let's count it as 30%. Then the remaining 70% will be divided equally between the developer and the user who provided the TVL. Of course, it is also possible that the developer will directly take 50% of the total share. It is not certain here. However, no matter how it is calculated, the total share of the airdrop that the depositor will get is 30%, which is about 300 million.

Here I still count Blast's share as a top L2 close to ARB's level. You should know that ARB has a very strong ecological construction and a large number of users. Blast currently has only one bridge, and it took three months from the mainnet launch in February to the coin issuance, and the ecological construction is unknown.

That is to say, Blast, you may only get 30%+ of the airdrop income for your final 1 billion TVL. If the token is issued in May and saved for half a year, from the perspective of Defi, an annualized return of 70%+ is indeed acceptable.

But in terms of the cost-effectiveness of airdrops, I can only say it is very low.

The reward model of traditional public chains is to limit the income of top investors. For example, if you provide 1 million TVL and 10,000 transactions, the maximum income per order is about 20,000. In Blast, you can get more than 600,000.

Retail investors can get thousands of U by providing a TVL of 100U and 30 TXs.

The TVL difference is 10,000 times, but the return difference is only 20X, so it’s fair!

Therefore, the distribution logic of traditional public chains is to favor small households, restrict large households, and make it easier for them to get rich quickly.

Blast, on the other hand, releases a large amount of airdrops to large investors (without a cap). After studying the rules, it is difficult for small investors to have any big chances to achieve excess returns. Many large investors have KOLs and influence, and can form a stronger team and attract more people, thereby occupying more points. Because the right to speak is also a Matthew effect.

I can only say that this is a game of the Matthew effect, the rich get richer and the poor cannot cross classes.

As for why I don’t participate? I don’t like to lock up liquidity for too long, and I’m not sure if the market will crash again if I hold the APY.

Most importantly, I am a gambler and I like Alpha returns.