Cryptocurrency-oriented social network, Blockster, has announced the launch of a liquidity provider rewards program for its token, BXR.
Based on the announcement, the project will make available 2 million BXR to users who lend liquidity to their BXR/ETH market on Uniswap. The tokens will be earned by users who stake their tokens in the BXR/ETH liquidity pool on Uniswap, one of the biggest marketplaces for DeFi projects.
According to the Chief Executive Officer and Founder, Adam Todd, “Blockster is going to be the central platform where you find everything crypto.” Also, he noted that the all-in-one-crypto project will help harmonize the fragmented crypto network and providing a platform for advertising crypto products. This is unlike on regular social media, where crypto advertisements are blocked.
Per the company’s projections, Todd’s conservative estimates put the BXR token at $40 in 3 years, an average of 4 million registered users, and 8 million monthly visitors to the platform.
The BXR is the utility token of the platform. It is the unit of currency for advertising by partners on the platform. Likewise, it is useful for staking, governance, p2p transactions, tipping, and more. Users who stake their tokens get a 20% share of the ad revenue.
How the Liquidity Reward Will Work
The total token supply of BXR is about 100 million tokens and is held by Blockster holdings. Of this number, 2 million tokens will be distributed via the BXR rewards. This will be based on the percentage of liquidity introduced by each user to the BXR/ETH market on Uniswap.
The program will run actively for a year. In that time, 166,000 BXR will be distributed every month to the users staking their ETH and BXR. Stakers will earn rewards daily and can withdraw their BXR/ETH pool tokens at any time.
Users who provide more liquidity, and do so for longer in the Uniswap pools will enjoy more rewards and receive more BXR on the project