Ivan covers Big Tech, India, policy, security, platforms, and apps. That is a mixed bag. Ivan covers Big Tech, India, policy, artificial intelligence, security, platforms, and apps. That is a mixed bag. He likes to say "Bleh". You would have to pay a transaction fee if you wanted to buy an NFT based on ether. The fee went up last week. You might have had to pay a lot of money to get an NFT. There is a weird web3 story. Over the weekend, Yuga Labs opened up its mint to its Otherside metaverse. The mint made more than $317 million with many anticipatory participants. At the time of mint, it sold 55,000 NFTs at a flat price. Transaction costs for all projects on the ethereum block went up because of the activity. Some people had to pay thousands of dollars for a few transactions. There was a heated debate about Yuga Labs' smart contract and its efficiency. It is a good opportunity to better understand the concepts of gas and smart contracts. Any activity that needs to be recorded on the ledger DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch DropCatch The energy required for miner to verify transactions is called thegas. The fee can be changed based on the number of transactions that take place. If you pay more gas fees, your transaction will be processed first. You have to pay the minimum gas fee at that time, plus the amount of gas used in a particular transaction as processing fees. In order to claim Otherside NFTs, people started to outbid each other by willing to pay higher gas fees, which drove the network's gas fees to over 8,000 gwei. At the time of writing, the data suggested that people have spent more than $183 million on transaction fees for Otherside NFTs alone. The gas war affected other transactions on the network. Ethereum is broken. I just spent $1,000 for a transaction. What happened!? — twan (@dantwany) May 1, 2022 if i wanted to register one of those .eth domain names right now it would cost me $5…plus $4,661.88 in fees the future, baby! lmao pic.twitter.com/HZQHnPGIzZ — Matt Binder (@MattBinder) May 1, 2022 Unbelievable… pic.twitter.com/Go2DFTAxw1 — JAY CROFT 🌴 (@MrJayCroft) May 1, 2022 just watched someone pay a $3500 transaction fee for a $500 NFT pic.twitter.com/AFuQwBVqxf — Molly White (@molly0xFFF) May 1, 2022 It's bad for Otherside NFT buyers and other users of the ether. Many people thought that Yuga Labs could have written a more efficient smart contract to save money. When terms of the agreement are specified in it are met, smart contracts execute. A document between the buyer and seller of a house is considered a contract in the analog world. A piece of code is used to do that in the web3 world. Nearly $100M has been spent on gas for the BAYC land sale in one hour. This is money that could have gone to Yuga or stayed in user's pockets. The contract had nearly zero gas optimizations. I'll explain a few gas optimization tricks that could have saved many millions below 👇 pic.twitter.com/CsYvWdEQKc — Will Papper ✺ (@WillPapper) May 1, 2022 What @yugalabs did: 1. Whitelisted more addresses than available NFTs2. Zero optimizations in the smart contract (not even using ERC721A)3. No max gas limit for minting (easy to do in Solidity)4. Gave themselves best positioned land based on TokenId 5. Blamed Ethereum🤯
How much Gas fee is too much?
The smart contract debated
May 1, 2022, Ultra Supa Hot Fire.
Vitalik Buterin said that people would pay more for NFTs even if Yuga Labs changed the smart contracts.
Don't think optimizing the contract would help. Regardless of contract details, tx fee goes up until list price + tx fee = market price. If gas usage per purchase decreased 2x, the equilibrium gas price would have just been >12000 gwei instead of 6000.
— vitalik.eth (@VitalikButerin) May 1, 2022
The gas price impact could be reduced by different strategies, like a Dutch auction for high-demand mints, argued the publication. Last week, Yuga Labs said it wouldn't go for a Dutch-style auction for the Otherside mint.
The mint was disappointing for many people trying to join the community.
We know that the Otherdeed mint was unprecedented in its size as a high-demand NFT collection, and that would bring with it unique challenges.
— Yuga Labs (@yugalabs) May 1, 2022
Yuga Labs will give refunds to people whose transactions didn't go through. People who paid high gas fees for non-Otherside transactions have nowhere to go because of this mint. The company did not acknowledge that.
The co- founder of BAYC said that this was a sad moment for the community.
Needless to say tonight didn't go how anyone wanted it to. I want to say sorry to the apes, and to everyone else who eagerly looked to join into the project. It’s especially a sour moment since Otherside has been a passion project for so long.🧵
— Garga.eth (@CryptoGarga) May 1, 2022
Yuga Labs said that its own token will need its own blockchain. We don't know when that will happen.
Lin Dai, CEO of NFT platform OneOf, criticized Yuga Labs and said it shouldn't use decentralization as an excuse.
#Decentralization should never be used as an excuse for decisions of centralized venture-backed companies. “We’d like to encourage the DAO to start thinking”🤦🏻♂️ as if your DAO board is not made up of your VCs. Time to take responsibility, be accountable to the community @yugalabs https://t.co/VcsPSOXGka
— Lin Dai (@ThePointsDai) May 1, 2022
Yuga Labs needs a solution to handle chaotic mints, which is why Polygon is providing it.
We have a *super* solution for you @yugalabs to solve this problem.
Polygon Supernets allows you to launch your own public dedicated yugalabs blockchainhttps://t.co/tOa9nrnxh8 https://t.co/BRyKvQg98k
— Polygon – MATIC 💚 (@0xPolygon) May 1, 2022
The company mentioned that it might look to migrate the coins to its own platform.
The future mints of the firm would likely get a lot of attention because of their hype in the Web3 world.
With its current infrastructure, ether can process 15-45 transactions. When it moves to a proof-of-stake model, it might take at least a few months.
Yuga Labs hopes that future mints will be better. The process of claiming NFTs can leave a sour taste in people's mouths.
It is almost certain that Yuga Labs will attract a lot of money, but the company needs to deal with issues that could lead to frustration.
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