Yuga Labs, the web 3 company behind Bored Ape Yacht Club, has disrupted the entire Ethereum blockchain as an influx of users hastened to purchase NFTs that are virtual plots of land in its upcoming metaverse project, the other side. A total of 55,000 Otherdeeds were sold at a fixed price of 305 ApeCoin, or about $5,800 at the time of purchase (via Queen Telegraph), raising about $320 million in what was considered the “largest NFT mint in history”.
Other coins are minted in BAYC’s original ApeCoin, but Still requires Ethereum for gas fees. Gas fee is the cost associated with a transaction on the Ethereum blockchain. The fee usually increases as the network congests because it becomes more work to process the transaction.
Such a large volume of transactions during the other Mint period caused gas charges to rise. As noted before Queen TelegraphReddit user u/johnfintech notes that some buyers have shelled out anywhere from 2.6 ETH ($6,500) to 5 ETH ($14,000) in gas fees alone — more than Otherdeed NFT’s cost (and in some cases, more than twice the cost). By the time the virtual land bond was sold, buyers had paid a total of about $123 million just to carry out their transactions on the Ethereum blockchain (via Bloomberg).
Yuga Labs has issued an apology on Twitter Soon after the mint expired. “We are sorry to turn off the lights on Ethereum for a while,” said Yuga Labs. “It seems quite clear that ApeCoin will need to migrate to its own chain in order to scale properly. We would like to encourage DAO [decentralized autonomous organization] to start thinking in that direction.” The ApeCoin DAO, the decision-making entity within the ApeCoin community, exists separately from Yuga Labs. DAO decisions are implemented by the Ape Foundation Board of Directors, which consists of Reddit co-founder Alexis Ohanian, and co-founder Alexis Ohanian. For Animoca Yat Siu, et al.
We are sorry to turn off the lights on Ethereum for a while. It seems quite obvious that ApeCoin will need to migrate to its own chain in order to scale properly. We would like to encourage the DAO to start thinking in this direction.
– Yoga Labs (yugalabs) May 1, 2022
The disruption slowed transactions on Ethereum-related services, such as Uniswap, and caused the Ethereum transaction tracker, Etherscan, to crash. number From users It also reported a loss of thousands of dollars for gas fees in failed deals. Yoga Labs a promise To compensate users for gas fees associated with failed transactions, but it is unclear what the refund process will look like. the edge I reached out to Yuga Labs asking for comment but they were not immediately answered.
As explained in a post days before the coinage, Yoga Lab’s original goal was to avoid the “horrific” gas war, or the sudden rise in gas fees due to high demand. It said it would abandon the popular Dutch mint auction style, in which NFTs are offered for sale at a certain cap price and then gradually reduced over time. I used an alternative approach instead, which is to sell NFTs at a fixed price and choose to gradually allow more mint to occur over time:
Rather than resorting to a fake Dutch auction, the other mint will use the following mechanic: the sale price will remain fixed for the duration, and at the start of the sale there will be an intentionally low limit per wallet on the number of NFTs that may be minted (note that these are not “one time minted” ‘ but ‘minted in total’). Once the initial wave of relatively low gas transactions is sent out, and the network starts to calm down, the wallet-wide minting limit will be increased to allow for a second wave of minting – those who feel full will sit outside this wave, while those with more ApeCoin to spend the mint will.
The mint mess has led some users to suggest ways to improve the process in the future. Will Papper, co-founder of Syndicate DAO, a platform that allows users to create web3 investment clubs, suggest it Yuga Labs is improving its contracts to lower gas fees and adjust the minting mechanism.
Of course, gas improvements are only one part of the equation.
You need better mint design (allow list, Dutch auction) + gas improvements.
The money spent on gas is the money that can go to the builders. This happens through the mint design + smart contract.
– Will Papper @ (@WillPapper) May 1, 2022
In March, Yuga Labs raised $450 million in financing to build the other sideDecentralized metaverse with manipulative elements. While it is meant to include Yuga Lab’s NFT brands, such as the newly acquired CryptoPunks and Meebits, the company has goals to expand support to NFTs from other entities. Much is still unknown about the future the other sideHowever, this clearly did not stop the enthusiastic community from investing in the project.