The Bored Ape Yacht Club Creator’s Metaverse Mint Rocks Ethereum Blockchain

Yuga Labs, the web3 company behind the Bored 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, Another side. A total of 55,000 other works were sold at a flat rate of 305 ApeCoin, or about $ 5,800 at the time of purchase (via Corner Telegraph), raised about $ 320 million in what is considered “the largest NFT money in history.”

Other works were done with BAYC’s native ApeCoin, however still need ethereum for gas fees. Gas tax is the cost associated with an Ethereum blockchain transaction. Fees will usually increase as the network becomes narrower, as it becomes more difficult to process a transaction.

Such a number of transactions during the Otherdeed currency caused a rise in gas fees. As mentioned Corner TelegraphReddit user you/johnfintech points out that some buyers get anywhere from 2.6 ETH ($ 6,500) to 5 ETH ($ 14,000) in gas fee alone – more than the cost of an NFT Otherdeed ( and in some cases, more than double the cost). By the time the virtual title deeds were sold, buyers had paid a total of about $ 123 million just to implement their businesses on the Ethereum blockchain (via Bloomberg).

Yuga Labs issued an apology on Twitter shortly after the end of the mint. “We are sorry to have turned off the Ethereum lights for a while,” Yuga Labs said. “It seems very clear that ApeCoin needs to move its own chain to measure correctly. We want to encourage DAO [decentralized autonomous organization] to begin to think in this direction. The ApeCoin DAO, the entity responsible for making decisions within the ApeCoin community, exists separately from Yuga Labs. DAO decisions are made by the Ape Foundation Board of Directors comprised of Reddit co-founder Alexis Ohanian, Animoca co-founder Yat Siu and others.

The disruption slowed transactions on Ethereum -related services, such as Uniswap, and caused Ethereum’s transaction tracker, Etherscan, to crash. A number on users also said he lost thousands of dollars in gas costs in failed trades. Yuga Laboratories gisaad to reimburse consumers for gas bills related to failed transactions, but it is unclear what the reimbursement process will look like. The edge Yuga Labs was contacted with a request for comment, but did not immediately respond.

As described in a post a few days before the Mint, the Yuga Lab’s primary purpose was to avoid a “devastating” gas war, or a sudden rise in gas prices due to high need. He said he would abandon the popular Dutch style of printing at auction, where an NFT was offered to be sold at a certain ceiling price and then gradually downgraded over time. Instead, he used an alternative method, selling NFT at a fixed price and choosing to gradually allow more mints to occur over time:

Instead of resorting to a fake Dutch auction, Otherdeed Mint will use the following mechanism: the sale price will remain stable over time, and at the start of the sale there will be an intentionally lower limit per purse in quantity. of NFTs that can be hit (note that these are not ‘one hit’, but ‘total hits’). Once the initial wave of relatively low 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 who are fed will pass through this wave, while those have more ApeCoin to spend, monetize.

The mint hotel chaos has prompted some users to suggest ways to improve the process in the future. Will Papper, the co-founder of Syndicate DAO, a platform that allows users to create web3 investment clubs, suggested that Yuga Labs optimized its contracts to reduce gas charges and adjusted its mint mechanism.

In March, Yuga Labs raised $ 450 million in funding to build the Another side, a decentralized metaverse with elements of gamification. While this should include Yuga Lab’s NFT brands, such as the newly acquired CryptoPunks and Meebits, the company aims to expand support for NFTs from other entities. Much more is not known about the future Another sidebut clearly that hasn’t stopped the enthusiastic community from investing in the project.

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