What is Blast (BLAST)?

Deep Dive

1. Purpose & Value Proposition

Blast was created to solve a key limitation of most Layer 2s: idle capital. While other chains offer no default return, Blast automatically generates yield for users holding ETH or stablecoins like USDC. This yield comes from two sources: ETH staking rewards on Ethereum's base layer and returns from Real-World Asset (RWA) protocols, such as MakerDAO's Treasury bills (Crypto.com). The value proposition is turning the blockchain itself into a yield-bearing environment, simplifying passive income for users and creating new economic models for developers.

2. Technology & Architecture

Technically, Blast is an EVM-compatible optimistic rollup. This means it bundles transactions off-chain before submitting a summary to Ethereum, ensuring lower fees and higher speed while relying on Ethereum's robust security for finality. Its key innovation is integrating yield generation directly into the chain's architecture. User balances in WETH or Blast's native stablecoin, USDB, automatically and continuously compound this yield without requiring any active staking or management from the user.

3. Tokenomics & Governance

The BLAST token has a total supply of 100 billion. Half (50%) is allocated for community initiatives, with the remainder distributed to core contributors, investors, and a foundation (Crypto.com). The token facilitates governance, allowing holders to vote on protocol upgrades and treasury management. The community is engaged through a points system where users earn "Blast Points" for bridging assets and "Blast Gold" is awarded to developers to distribute within their dapps, creating a flywheel for ecosystem growth.

Conclusion

Fundamentally, Blast is an attempt to redefine a Layer 2's core utility by embedding native yield, aiming to attract and retain capital through automated returns. Can its unique economic model sustain a vibrant developer ecosystem against established competitors?