Yuga Labs, the web3 company behind Bored Ape Yacht Club, disrupted the entire Ethereum blockchain when a rush of users rushed to buy NFTs representing virtual land in their next metaverse project, Other side. A total of 55,000 Otherdeeds sold at a fixed price of 305 ApeCoin, or around $5,800 at time of purchase (via CoinTelegraph), raising around $320 million in what was considered the “largest NFT mint in history”.
Other scripts are minted in BAYC’s native ApeCoin, but they still require Ethereum for gas fees. A gas fee is the cost associated with a transaction on the Ethereum blockchain. Fees generally increase as the network becomes congested, as it becomes more work to process a transaction.
Such a large volume of transactions during Otherdeed’s minting caused gas rates to skyrocket. as pointed out CoinTelegraph, Reddit user u/johnfintech noted that some buyers paid between 2.6 ETH ($6,500) and 5 ETH ($14,000) in gas fees alone, more than the cost of an Otherdeed NFT (and in some cases more). double the cost). When virtual title deeds ran out, buyers paid a total of around $123 million just to execute their transactions on the Ethereum blockchain (via Bloomberg).
Yuga Labs issued an apology On twitter shortly after the mint was over. “We are sorry to have turned off the lights on Ethereum for a while,” Yuga Labs said. “It seems very clear that ApeCoin will need to migrate to its own chain to scale properly. We would like to encourage the DAO [decentralized autonomous organization] start thinking in this direction. The ApeCoin DAO, the entity responsible for making decisions within the ApeCoin community, exists separately from Yuga Labs. Decisions for the DAO are carried out by the Ape Foundation Board, comprised of Reddit co-founder Alexis Ohanian, the Animoca co-founder, Yat Siu, and others.
We are sorry to have turned off the lights on Ethereum for a while. It seems very clear that ApeCoin will need to migrate to its own chain to scale properly. We would like to encourage the DAO to start thinking in this direction.
— Yuga Laboratories (@yugalabs) May 1, 2022
The outage slowed down transactions on Ethereum-linked services such as Uniswap and caused Ethereum’s transaction tracker Etherscan to crash. A number from users he also reported losing thousands of dollars in gas fees on failed transactions. yuga labs fiance to reimburse users for gas fees associated with failed transactions, but it is unclear what the reimbursement process will look like. the edge He reached out to Yuga Labs with a request for comment but did not immediately hear back.
As described in a post days before the mint, Yuga Lab’s original goal was to prevent an “apocalyptic” gas war, or a sudden increase in gas rates due to high demand. He said he would abandon the popular Dutch auction style of minting, in which an NFT goes on sale at a certain maximum price and then gradually reduces over time. Instead, he employed an alternative method, selling NFTs at a fixed price and opting to gradually allow more mints to be produced over time:
Instead of resorting to a fake Dutch auction, the Otherdeed mint will employ 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 amount of NFTs that can be minted (note that this is not “minted at once”, but rather “minted in total”). Once the initial wave of relatively low gas transactions has occurred, and the network begins to calm down, the wallet-level minting limit will be increased to allow for a second minting wave: those who are satiated will be left out of this wave, while those with the most ApeCoin to spend will be minted.
The mess of a mint prompted some users to propose 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, suggested that Yuga Labs optimizes your contracts to reduce gas rates and adjust your mint mechanism.
Of course, gas optimizations are only part of the equation.
Needs better mint mechanism design (allow list, dutch auction) + gas optimizations.
The money spent on gasoline is money that could go to the builders. This is done through both the mint design and the smart contract.
In March, Yuga Labs raised $450 million in funding to build the Other side, a decentralized metaverse with gamification elements. While it is supposed to encompass Yuga Lab’s NFT brands such as recently acquired CryptoPunks and Meebits, the company is aiming to extend support to NFTs from other entities. Much is still unknown about the outlook Other sidebut that clearly hasn’t stopped its enthusiastic community from investing in the project.