Ethereum’s scalability issues come back into the spotlight following the release of the latest Bored Ape Yacht Club NFT collection.
According to CNET, “Otherdeed’s” NFT demand was so high that gas fees skyrocketed and caused network problems for hours after its launch on Saturday, April 30.
“Users ended up paying thousands of dollars in fees for failed transactions, and Ethereum proved unusable for hours because it couldn’t distribute the load.”
Such was the FOMO frenzy that some users reported spending thousands in gas fees just to have the transaction fail. The Ethereum blockchain is designed so that miners receive gas fees regardless of whether an attempted transaction is written to a block or not. Therefore, gas fees for failed transactions are generally not refunded.
developer Yuga Laboratories said they were aware that the “incredible demand” had caused some users’ transactions to fail. But as a goodwill gesture, they said they would refund affected users.
We are aware that some users have failed transactions due to the incredible demand forced by the Ethereum congestion. For those of you who have been impacted, we appreciate your willingness to build alongside us – know we have your back and we will reimburse you for your gas.
— Yuga Labs (@yugalabs) May 1, 2022
What is Bored Ape Yacht Club ‘Other Side’?
Yuga Labs has big plans to grow the Bored Ape Yacht Club ecosystem.
Launched last month, APECoin stormed the market cap rankings to 40th on its debut. Building on that momentum, the $APE token has since climbed to 28th place and is within striking distance of beating Cosmos to the next spot.
APECoin is the governance token of the APE ecosystem and provides holders with access to the ecosystem, including the ‘Other side‘Metaverse World.
Otherside will bring together various leading NFT projects in a massively multiplayer online role-playing game (MMORPG). These include Apes, CryptoPunks, Meebits, World of Women, CrypToadz, and Cool Cats.
Bored Ape’s NFT launch on Saturday was for “Otherdeed” NFTs which, as the name suggests, are for (land) deeds in the virtual world of Otherside.
Each Otherdeed NFT costs $305 APE and $22.16 per $APE at the time of publication and costs approximately $6,750 to mint.
“55,000 parcels of otherside land, dubbed ‘Otherdeeds’, will be available for purchase. The cost of each other act is $305 APE.”
As reported by observer guruthe launch was a success, generating $100 million in revenue within 45 minutes of going live.
BREAKING: BAYC has sold over $100,000,000 worth of digital properties 45 minutes after launching their Otherside Metaverse.
— Watcher.Guru (@WatcherGuru) May 1, 2022
The Price of Popularity
Although it was a major win for Yuga Labs, Otherdeeds once again demonstrated the scaling flaws in the Ethereum protocol.
Massive demand for Otherdeeds NFTs caused Ethereum gas price to surge as users attempted to “skip the queue” by outbidding other traders.
Some reportedly paid up to $7,000 in gas fees to enforce transactions. However, one person spent $44,000 in gas fees on two Otherdeeds NFTs, which is three times the price of the NFTs themselves.
In activities unrelated to Otherdeeds, one user reported a $1,700 gas fee to send $100 from one wallet to another.
co-founder of White Sands Metverse, Adam Hollander called the situation an “irresponsible waste”, adding that it reflects badly on “our space”.
This is a distraction, not a responsibility. There were a dozen ways you could have mitigated this irresponsible waste. What you should have tweeted was, “We did it. We own that.” I still love BAYC, but that wasn’t a good day for our space.
— Adam Hollander (@HollanderAdam) May 1, 2022