Metaverse: The crypto-currency creator of the Bored Ape Yacht Club has established itself on the Ethereum blockchain!

Yuga Labs, the web3 company behind Tired Ape Yacht Club, disrupted the entire Ethereum blockchain as a flood of users rushed to purchase NFTs representing virtual land spaces in its upcoming metaverse project, Otherside. A total of 55,000 Otherdeeds were sold at a flat price of 305 ApeCoin, or approximately $ 5,800 at the time of purchase (via CoinTelegraph), raising approximately $ 320 million to what is believed to be the “largest that NFT strike in history ”.

Other titles are made in ApeCoin, BAYC’s native currency, but still require Ethereum for gas fees. The gas fee is the cost associated with an Ethereum blockchain transaction. Fees often go up as the network is congested because it takes more work to process a transaction.

Such a number of transactions during the Otherdeed mint caused a rise in fuel bills. As CoinTelegraph noted, Reddit user u/johnfintech pointed out that some buyers shell out between 2.6 ETH ($ 6,500) and 5 ETH ($ 14,000) in gas cost alone, or more in cost in an Otherdeed NFT (and in some cases more than double). At the time the virtual titles were sold, buyers paid a total of about $ 123 million just to implement their transactions on the Ethereum blockchain (via Bloomberg).

Yuga Labs posted an apology on Twitter shortly after the mint ended. “We are sorry to have turned off the Ethereum lights for a while,” Yuga Labs said. “It seems very clear that ApeCoin needs to migrate its own chain to measure correctly. We want to encourage DAO [organisation autonome décentralisée] to begin to think in that direction. ApeCoin DAO, the decision -making entity within the ApeCoin community, exists separately from Yuga Labs. DAO decisions are made by the Ape Foundation Board, which includes Alexis Ohanian, co-founder of Reddit, and Yat Siu, co-founder of Animoca.

We regret turning off the Ethereum lights for a while. It seems very clear that ApeCoin needs to migrate through its own chain in order to measure well. We would like to encourage DAO to start thinking in this direction.

This disruption slows transactions on Ethereum -related services, such as Uniswap, and causes Etherscan, Ethereum’s transaction tracking tool, to crash. Several users also reported losing thousands of dollars in gas bills on failed transactions. Yuga Labs has promised to reimburse users for gas bills related to failed transactions, but it’s unclear what the refund process will look like. The Verge contacted Yuga Labs for comment, but did not receive an immediate response.

As a post a few days before the strike learned, the initial purpose of the Yuga Lab was to avoid a “devastating” gas war, or a sudden increase in gas costs due to in high demand. He said he would move away from the popular Dutch auction minting style, where an NFT is put up for sale at a specific price ceiling and then gradually reduce over time. He chose a different approach, sold the NFT at a specific price and chose to gradually allow the amount of money to increase over time:

Instead of using a fake Dutch auction, Otherdeed will use the following mechanism: the sale price will remain fixed for the duration of the sale, and at the start of the sale there is a deliberately lower limit per wallet on the number of NFT to be hit (note that it is not a “hit once”, but a “hit in total”). Once the first wave of relatively weak gas transactions is submitted and the network begins to calm down, the wallet -level strike limit will be increased to allow a second wave of strikes – those satisfied will remain seated during this wave. , while those with a lot of ApeCoin to spend will hit.

The chaos of a coin changer has prompted 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, suggests that Yuga Labs optimize its contracts to reduce gas costs and be adjust its coinage mechanism.

Of course, throttle optimization is only part of the equation.

You need better coinage mechanism design (allowlist, dutch auction) + gas optimization.

The money spent on fuel is more money that goes to the builders. This is done through Mint design and smart contract.

In March, Yuga Labs raised $ 450 million in funding to build Otherside, a decentralized metaverse with elements of gamification. While this should include Yuga Labs ’NFT brands, such as the recently acquired CryptoPunks and Meebits, the company aims to expand support for NFTs from other entities. We don’t know yet about Otherside’s future, but it’s clear that hasn’t stopped the enthusiastic community from investing in the project.

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Thomas Estimbre
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