BAYC 'Otherside' Metaverse raises millions, marking the largest NFT launch in history
The Otherside metaverse finally dropped their NFTs on April 30th, raising about $320 million. According to the company, it is by far the largest NFT mint in history, with a scale so huge that Etherscan crashed.
Otherside is an upcoming MMORPG that features successful NFTs such as Bored Apes, Meebits, Cool Cats and CrytpoPunks, among others. This metaverse world is rumoured to contain virtual plots of land that include unique artifacts, natural resources, and rare characters. On Saturday, April 30th, Yuga Labs released the first round of 55,000 Otherdeed NFTs which were available to pre-approved KYC wallets.
The $320 million revenue estimate is based on the NFT land price of 305 ApeCoin ($APE). Moreover, the mint consumed over $160 million in gas fees, with each transaction costing around 2 ETH, resulting in gas wars and failed transactions.At the time of writing, Otherdeed NFTs are trading at a floor price of 7.79 ETH.
In addition to the 55,000 Otherdeed NFTs sold on the mint day, another 45,000 will be available to Bored Ape Yacht Club and Mutant Ape Yacht Club holders, with an additional 100,000 to be issued subsequently to other Otherdeed holders.
Starting May 1st, existing BAYC and MAYC holders can claim their Otherdeed NFT for free by just paying the gas fees. The holders don't need to be KYC-approved during this period, but they do need to if they want to mint during the auction.The amount of ApeCoin earned from this sale will be locked up for one year.
While the Otherdeed NFTs were sold at a fixed price and a cap of 1500 ApeCoins per wallet, the original plan was to launch the project via Dutch auction. However, the new strategy did not ease traffic congestion.
ApeCoin envisions to be used in various web 3 apps that employ digital tokens. Before the Otherdeed sale on Saturday evening, OpenSea announced that it now accepts ApeCoin. Essentially, ApeCoin is also the governance token of ApeCoin DAO, whose board includes Reddit co-founder Alexis Ohanian, FTX's Amy Wu and Animoca Brands' Siu.
With such high demand for Otherdeed NFTs and gas fees as high as 3 ETH, many users are dissatisfied, having experienced failed transactions that cost them thousands of dollars in gas fees. Several critics, including Solidity developers, believed Yuga Labs could have saved up to 80% on gas by switching to ERC721A smart contracts and removing ERC721Enumerable.
Vitalik Buterin, the founder of Ethereum, on the other hand, stated that optimizing the contract would be ineffective. He wrote on Twitter:
"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."
Due to a large number of rejected transactions in the Otherdeed NFT sale, Yuga Labs is considering moving ApeCoin to its own blockchain in order to expand properly in the future. They also mentioned reimbursing gas fees in a tweet as follows:
"We are aware that some users had failed transactions due to the incredible demand being forced through Ethereum’s bottleneck. For those of you affected, we appreciate your willingness to build alongside us – know that we’ve got your back and will be refunding your gas."