Web3 business disrupted Ethereum blockchain: users rushed to buy NFTs of virtual plots in Otherside

A total of 55,000 Otherdeeds were sold at a flat price of 305 ApeCoin, or around $5,800 at the time of purchase, raising approximately $320 million in the “biggest NFT mint in history.”

Yuga Labs, the web3 business behind the Bored Ape Yacht Club, disrupted the entire Ethereum blockchain as a torrent of users rushed to buy NFTs representing virtual plots of land in Otherside, its planned metaverse project.

Other transactions are conducted in BAYC’s native ApeCoin, while gas fees are paid in Ethereum. A gas fee is a cost of completing an Ethereum blockchain transaction. Fees often rise as the network becomes more congested because processing a transaction becomes more difficult.

Ethereum customers have lost millions because of this…

According to reports, Reddit user u/johnfintech pointed out that gas fees alone cost some buyers anywhere from 2.6 ETH ($6,500) to 5 ETH ($14,000), Buyers spent a total of $123 million to perform their transactions on the Ethereum blockchain by the time the virtual land deeds sold out (via Bloomberg).

We’d want to see the DAO [decentralized autonomous organization] start thinking about this.”The DAO’s decisions are made by the Ape Foundation’s Board, which includes Reddit co-founder Alexis Ohanian, Animoca co-founder Yat Siu, and others. “

Transactions on Ethereum-linked services like Uniswap were hindered, and the Ethereum transaction tracker Etherscan crashed as a result of the outage.

A handful of customers also claimed to have lost thousands of dollars in failed transactions due to gas fees.

Yuga Labs offered to repay users for any gas prices caused as a result of failed transactions, but the return mechanism is yet unknown. Yuga Labs was contacted by The Verge with a request for information.

A suggestion to Yuga Labs from investors

After watching the mess made by a mint, some people proposed ways to improve the technique in the future.

According to Will Papper, co-founder of Syndicate DAO, a platform that allows users to create web3 investment clubs, Yuga Labs should optimize its contracts to reduce gas expenses and change its mint mechanism.

Yuga Labs raised $450 million in March to develop the Otherside, a decentralized metaverse with gamification aspects.

While it’s intended to cover Yuga Lab’s NFT brands, including the recently purchased CryptoPunks and Meebits, the business also wants to support NFTs from other companies.

There’s still a lot we don’t know about the potential Otherside, but that hasn’t prevented its devoted community from investing in it.

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Andrew is a blockchain developer who developed his interest in cryptocurrencies while his post-graduation. He is a keen observer of details and shares his passion for writing along with being a developer. His backend knowledge about blockchain helps him give a unique perspective to his writing