On Saturday April 30, the creators of Bored Ape, Yuga Labs broke Ethereum. Their new metaverse-inspired project, Otherside, sold virtual plots of land to a roaring crowd of people shouting “Shut up and take my money!” In this case, the currency in question was the recently created ApeCoin. However, since Ethereum hosts ApeCoin and terrestrial NFTs, the roaring crowd needed ETH to pay for the gas fees of operations.

If you know Ethereum, you already know what happened. According to IntoTheBlock’s Lucas Outumuro, “The Bored Ape’s Otherside land sale led to more fees processed by Ethereum in three hours than in the previous two weeks.” Of course, all hell broke loose. Gas prices across the network skyrocketed, many deals failed causing people to lose their gas fees, and others just couldn’t afford to hit the NFT lands they were entitled to. .

At the end of the day, the Otherside NFT virtual plots, known as Otherdeeds, sold out. The Ethereum network pocketed around $125 million in gas fees alone. He didn’t survive the madness unscathed, however. Several Ethereum-based projects reported failures and/or slowed operations and Etherscan, Ethereum’s block explorer, crashed completely. “We are sorry to have turned off the lights of Ethereum for a while,” Bored Ape creators Yuga Labs said.

Origins on the Other Side

In March, Yuga Labs raised a $450 million funding round led by Andreessen Horowitz to build Otherside. Apparently, it’s a Metaverse project in the vein of Decentraland and The Sandbox, but with a Play-To-Earn element built in from the start. That same month, they created the deceased http://somethingisbrewing.xyz/ ask people to KYC themselves and link their personal information to their Ethereum addresses.

These registered addresses were entitled to hit two plots of land in the Otherside Playground. Bored Ape holders each received two free plots. There are a total of 55K Otherdeeds. To mint each, it costs 305 ApeCoin, plus gas fees from the Ethereum network. Although it was expensive, considering Yuga Lab’s successes, it seemed like a bargain.

Until gas prices reach unaffordable levels, that is.

ETH price chart on FTX | Source: ETH/USD on TradingView.com

Bored Ape creators Yuga Labs talk

After selling everything, smashing everything, and leaving humble collectors landless, the creators of Bored Ape have responded to the controversy with this brief Twitter thread.

Among other things, Yuga Labs said:

  • Even though they took the mentioned KYC measures, too many people wanted to participate. “This is the largest NFT mint in multiple multiple history, yet the gas used during mint shows far exceeded anyone’s wildest 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 to scale properly. ”
  • They will reimburse gas costs for unsuccessful operations. “For those of you concerned, we appreciate your willingness to build alongside us – know that we’ve got you covered and we’ll refund your gas.”
  • In a subsequent tweet, Yuga Labs announced that the gas refund process had already begun. “Note that you don’t have to do anything – we’ll transfer this all to your wallet and let you know when it’s finished. Don’t click on any links.

Even though it looks like the creators of Bored Ape are doing the right thing, it’s worth noting that people receiving said refunds weren’t able to purchase an Otherdeed NFT and the collection ran out. They can still get them in the secondary market at a higher price, but the community isn’t happy.

Bored Ape users speak

The following is a select selection of opinions on the launch. Most of these people are Bored Ape rich and heavily invested in the Yuga Labs ecosystem, but they are worried. Let’s summarize what they said.

  • According to Ap3father, “The drop went incredibly wrong. That’s the truth of it all. Plus, “this drop did nothing to further help the already popular Yuga community cast…the same 27 ,5,000 people bought..” However, he reflected, “Yuga Labs made me a millionaire. I am more than spoiled, humbled and blessed to be in this situation because of them.

His conclusion is that “the community reacted horribly to this mint.” And his advice is to sell: “You may have millions in NFT and that’s exceptional, but hold on to reality. When you die one day…they don’t bury you in the metaverse my friend. “He’s got extra Bored Apes, so he’s not going anywhere. “I’m excited to both sell monkeys and continue my journey to the other side.”

  • For his part, Irish expressed his distrust. “How are the greatest innovators in space not planning a gas war? You literally have every address, every KYC’d ID. Offer each KYCd 2 lands? And tried to get Yuga Labs to honor his promise to sell him an Otherdeed, “We hear how you’re ‘fixing’ I’m glad you’re paying for failed trades! Admit your mint mistake.
  • On the other hand, 3433 defended Yuga Labs. “Yuga let us hit BAYC for 0.08, they gave us dogs to claim currently worth 9 ETH, they gave us free serums worth 57 ETH to drink or keep/sell who made mutants, worth 30 ETH, they gave us $100-200,000 worth of $APE coin.

Vitalik Buterin speaks

  • Finally, Ethereum creator Vitalik Buterin defended the Yuga Labs smart contract that governed the entire operation. “Regardless of the details of the contract, the tax charge increases up to list price + tax charge = market price. If the gas consumption per purchase had decreased by 2 times, the equilibrium gas price would have just been > 12,000 gwei instead of 6,000.”

Nevertheless, the creators of Bored Ape seem quite 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