On Saturday, April 30, the creators of Yuga Labs from Bored Ape cracked Ethereum. Their new project inspired by the metaverse, others have sold virtual plots of land to a massive crowd chanting “Shut up and take my money!” In this case, the currency in question was Recently Created ApeCoin. However, since Ethereum hosts ApeCoin and terrestrial NFTs, the frenzied public needed ETH to pay gas fees for operations.
If you are familiar with Ethereum, you already know what happened. According to IntoTheBlock’s Lucas OtomoruBored Ape’s Other Side of the Land sold increased fees processed by Ethereum in three hours compared to the previous two weeks. Of course, all hell broke out. Gas prices across the network have gone over the cap, and many transactions have failed causing people to lose their gas fees, while others have not been able to afford to mint the NFT land they are entitled to.
At the end of the day, the virtual NFTs, known as Otherdeeds, were sold out from Otherside. The Ethereum network earned about $125 million in gas fees alone. But she did not escape the madness unscathed. Several Ethereum-based projects have reported failed and/or slowing down operations and Etherscan, the Ethereum block explorer, has crashed completely. “We are sorry to turn off the lights on Ethereum for a while,” said Yuga Labs designers at Bored Ape.
Back in March, Yuga Labs raised a $450 million funding round led by Andreessen Horowitz to build the other side. Apparently, it’s a Metaverse project in the context of Decentraland and The Sandbox, but with a Play-To-Earn element built into it from the start. In the same month, they created the now defunct http://somethingisbrewing.xyz/ To require people to KYC themselves and associate their personal information with their Ethereum addresses.
These registered titles have the right to occupy two plots of land at Otheride Stadium. Bored Ape holders received two free coins each. There are a total of another 55k. To mint each one costs 305 ApeCoin, plus the gas fee for the Ethereum network. Although it was pricey, considering Yuga Lab’s successful track record, it looked like a steal.
Until gas prices rose to unpayable levels, that is.
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Monkey Creators Talking Boredom From Yuga Labs
After selling everything, breaking everything, and leaving humble collectors landless, the creators of Bored Ape responded to the controversy with this short Twitter thread.
We know that other mints have been unprecedented in their size as a high-demand NFT group, and this should bring with it unique challenges.
– Yoga Labs (yugalabs) May 1, 2022
Among other things, Yuga Labs reported:
- Even though they took the mentioned “know your customer” actions, a lot of people wanted to get in. “This was the largest mint NFT in history by multiples, yet the gas used during the mint shows that demand far exceeded anyone’s expectations.”
- Soon, ApeCoin will stop being an Ethereum token and become a full-fledged cryptocurrency. “It seems quite clear that ApeCoin will need to migrate to its own chain in order to scale properly.”
Sorry to turn off the lights on Ethereum for a while. It seems quite obvious that ApeCoin will need to migrate to its own chain in order to scale properly. We would like to encourage the DAO to start thinking in this direction.
– Yoga Labs (yugalabs) May 1, 2022
- They will refund the gas fee for the operations that did not take place. “For those of you who are affected, we appreciate your desire to build side by side – know that we are with you and will refund your gas.”
- In a subsequent tweet, Yuga Labs announced that the gas recovery process has already begun. “Note that you don’t need to do anything – we’ll put it all back into your wallet and announce when it’s complete. Don’t click on any links.”
We are still working on refunds for all other mints with failed gas transactions. Note that you don’t have to do anything – we’ll put it all back in your wallet and announce when it’s complete. Do not click any links.
– Yoga Labs (yugalabs) May 2, 2022
Although the creators of Bored Ape seem to be doing the right thing, it is worth noting that the people receiving said refunds were unable to purchase Otherdeed NFT and the set was sold. They can still get it on the secondary market at a higher price, but society is not happy.
Talking monkey users are bored
Below is a limited selection of reviews about the launch. Most of these people are bored rich monkeys and are heavily invested in the Yuga Labs ecosystem, but they are worried. Let’s summarize what they said.
- According to the father’s father, “the drop was incredibly bad. That’s the truth of it all.” Additionally, “This drop did nothing to help increase the distribution of the already popular Yuga community…bought the same 27.5k people..” Still, he said, “Yuga Labs made me a millionaire. I am spoiled, humble, and blessed to be in This situation is because of them.”
The drop went incredibly. This is the truth of it all. The initial hypothesis was that there weren’t enough KYC wallets to sell in wave 1…not only was that incorrect…it sold with 2+E in gas all the way…nightmare scenario…
– ap3father.eth (@ap3father) May 1, 2022
His conclusion is that “society responded horribly to this mint.” And his advice to sell is, “You might have millions in NFTs and that’s cool, but stick with reality. When you die one day… they don’t bury you in metaverses my friend.” He has more bored monkeys, so he’s not going anywhere. “I’m excited to sell some monkeys and continue my journey to the other side.”
- For his part, the Irishman expressed doubts. “How can the biggest innovators in space not anticipate gas war? You have literally every title, every KYC ID. Showing every KYCd 2 territory?” And trying to get Yuga Labs to make good on its promise to sell it another act, “we’ve heard how it ‘makes you good’ I’m glad you’re You pay failed transactions! Admit your mistake with the mint.”
I spent 3 hours continually recovering and trying like many here. If you really want to spread in wallets, let these people know your customer (KYC). We were supposed to get two weeks. It was placed on the mint list allowed in the contract. Likewise like Gary Vee did, I chose instead a PR nightmare.
– Irish (Irishmikeys) May 2, 2022
- On the other hand, 3,433 defended Yuga Labs. “Yuga let us make BAYC for 0.08, they gave us dogs that we are currently claiming for 9 ETH, they gave us free jabs worth 57 ETH to drink or keep/sell making Mutants worth 30 ETH, and they gave us $100-200K worth of coins APE.”
Sure, mint could have gotten better, we could have had the Cue/Raffle system, but at the end of the day, every successful mint on ETH is a ridiculous show, we all know this.
– 3433.eth 🍌 ☕️ (@ boredape3433) May 1, 2022
Vitalik Buterin speaks
- Last but not least, Ethereum creator Vitalik Buterin defended the Yuga Labs smart contract that governs the entire operation. “Regardless of the contract details, tx fees rise up to list price + tx fees = market price. If gas usage per purchase drops twice, the equilibrium gas price will be more than 12,000 GWh instead of 6000.”
Do not think that improving the contract will help you. Regardless of the contract details, tx fee rises up to list price + tx fee = market price. If gas usage per purchase decreases by 2x, the equilibrium gas price will be >12,000 gwei instead of 6000.
– Vitalik.eth (@VitalikButerin) May 1, 2022
However, the creators of The Bored Ape seem very determined to create their own blockchain. Some people even suggest that they orchestrated this whole situation to justify and market it.
Featured Image: Bored Ape's metaverse Otherside logo from the site | Charts by TradingView