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

Yuga Labs, the web3 company behind Bored Ape Yacht Club, disrupted the entire Ethereum blockchain as a stream of users rushed to purchase NFTs representing virtual plots of land in its upcoming metaverse project, Otherside. 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 CoinTelegraph), raising about $ 320 million in what is believed to be the “biggest NFT attack in history”.

Other titles are minted in ApeCoin, BAYC’s original currency, but still require Ethereum for gas charges. A gas fee is the cost associated with a transaction on the Ethereum blockchain. Fees generally increase as the network becomes congested because it requires more work to process a transaction.

Such a volume of transactions under the Otherdeed coin caused gasoline fees to skyrocket. As noted by CoinTelegraph, Reddit user u / johnfintech pointed out that some buyers paid between 2.6 ETH ($ 6,500) and 5 ETH ($ 14,000) in gas costs alone, or more than the price of an Otherdeed NFT (and in some cases more than double ). At the time the virtual deeds were sold, buyers paid a total of about $ 123 million just to execute their trades on the Ethereum blockchain (via Bloomberg).

Yuga Labs posted an apology on Twitter shortly after the coin ended. “We’re sad to have turned off the lights on Ethereum for a while,” Yuga Labs said. “It clearly seems that ApeCoin will have to migrate to its own chain to scale properly. We would like to encourage DAO [organisation autonome décentralisée] to start thinking in that direction. ApeCoin DAO, the decision-making entity in 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’m sorry we’ve turned off the lights on Ethereum for a while. It seems quite clear that ApeCoin will have to migrate to its own chain to scale properly. We would like to encourage the DAO to start thinking in this direction.

This disruption slowed down transactions on Ethereum-related services, such as Uniswap, and caused Etherscan, the Ethereum transaction tracking tool, to crash. A number of users have also reported that they have lost thousands of dollars in gas taxes in failed transactions. Yuga Labs has promised to reimburse users for gas charges associated with failed transactions, but it is unclear what the refund process will look like. The Verge contacted Yuga Labs for comment but did not receive an immediate response.

As mentioned in a post a few days before the strike, Yuga Lab’s original goal was to avoid a “doomsday” gas war or a sudden increase in gas costs due to high demand. He said he would move away from the popular Dutch auction style, where an NFT is put up for sale at a certain ceiling price and then gradually reduced over time. She chose another method, selling the NFTs at a fixed price and gradually choosing to let the number of currencies increase over time:

Instead of using a fake Dutch auction, Otherdeed will use the following mechanism: the selling price remains fixed throughout the duration of the sale, and at the start of the sale there will be a deliberately low limit per sale. wallet on the number of NFTs that can be hit (note that this is not “hit at once” but “hit in total”). Once the first wave of relatively weak gas transactions has been submitted and the network begins to calm down, the strike limit at the wallet level will be increased to allow a second wave of strikes – those who are saturated will remain under this wave while they with more ApeCoin to use will strike.

The mess of a coin changer 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 set up web3 investment clubs, suggested that Yuga Labs optimize its contracts to reduce gas costs and adjust its coinage mechanism.

Of course, gas regulation optimization is only part of the equation.

You need a better design of coin mechanism (permit list, Dutch auction) + gas optimizations.

Money spent on gasoline is money that could go to builders. This is done both by the design of the Coin and by the smart contract.

In March, Yuga Labs raised $ 450 million in funding to build Otherside, a decentralized metavers with gamification elements. Although it is presumed to include Yuga Labs’ brands of NFTs, such as the newly acquired CryptoPunks and Meebits, the company aims to expand the support of NFTs from other devices. We still do not know much about the future of Otherside, but it has apparently not deterred its enthusiastic community from investing in the project.

💎 Open an account for free to invest in crypto!

📈 Trade cryptocurrencies online with just a few clicks!

eToro allows you to easily trade cryptocurrency online. Creating an account is free and easy.

68% of retail investor accounts lose money when trading CFDs with this provider. You should ask yourself if you can afford to take the high risk of losing your money. eToro users in France cannot open positions to buy real cryptocurrencies, all orders are opened as CFDs.

Thomas Estimbre
Latest articles by Thomas Estimbre (see everything)

Leave a Comment