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 when a flood of users rushed to buy NFTs representing virtual plots of land in the upcoming metaverse project, across† A total of 55,000 other acts sold at a flat rate of 305 ApeCoin, or approximately $5,800 at the time of purchase (via Corner Telegraph), raising approximately $320 million in what was considered the “largest NFT currency in history”.

Other deeds are being beaten in BAYC’s native ApeCoin, but still need ethereum for gas costs† A gas tax is the cost associated with a transaction on the Ethereum blockchain. Costs generally increase as the network gets busier and more difficult to process a transaction.

Such volume of trades during the Otherdeed currency has caused gas prices to skyrocket. as noted Corner TelegraphReddit user you/johnfintech pointed out that some buyers were paying anywhere from 2.6 ETH ($6,500) to 5 ETH ($14,000) in gas costs alone — more than the cost of an NFT Otherdeed (and in some cases, more than the double the cost). By the time the virtual property deeds sold out, buyers had paid a total of about $123 million to transact on the Ethereum blockchain (via Bloomberg

Yuga Labs apologized on Twitter shortly after the end of the coin. “We’re sorry we turned off the Ethereum lighting for a while,” says Yuga Labs. “It seems pretty clear that ApeCoin will have to migrate to its own chain in order to scale properly. We want to encourage the DAO [decentralized autonomous organization] to start thinking 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’s board of directors, made up of Reddit co-founder Alexis Ohanian, Animoca co-founder Yat Siu, and others.

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

As described in a post a few days before the Mint, Yuga Lab’s original goal was to avoid a “doomsday” gas war, or a sudden spike in gas prices due to high demand. He said he would move away from the popular Dutch style of auction coins, where an NFT is put up for sale at a certain ceiling price and then gradually reduced. Instead, he used an alternate method, selling NFTs at a fixed price and choosing to gradually create more mints:

Instead of resorting to a fake Dutch auction, the Otherdeed Mint will use the following mechanism: the sale price will remain stable 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 can be purchased. can be hit (note that these are not ‘one hits’, but ‘total hits’). Once the first wave of relatively low gas trades has been filed and the network begins to calm down, the wallet-level strike limit will be increased to allow for a second wave of strikes – those that are saturated will pass this wave, while those with more ApeCoin to spend will make money.

The mint hotel’s mess 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 is optimizing its contracts to reduce gas costs and adjusting its coin mechanism.

In March, Yuga Labs raised $450 million in funding to across, a decentralized metaverse with gamification elements. While it should include Yuga Lab’s NFT brands such as newly acquired CryptoPunks and Meebits, the company is looking to expand support for NFTs from other entities. There are still many unknowns about the future acrossbut that clearly doesn’t stop the enthusiastic community from investing in the project.

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