While NFT Otherdeed could only be minted in APE, ETH was also required to pay for gas.

As the community witnessed the largest non-fungible token (NFT) coin to date, Ethereum gas prices have surged to unprecedented levels due to users experiencing failed transactions due to blockchain bottlenecks.

Bored Ape Yacht Club creator Yuga Labs has launched the sale of non-fungible Otherdeed tokens, which are digital land documents in their new project, the Otherside metaverse. With each piece of land sold for 305 ApeCoin (APE), or nearly $5,800 at the time of the sale, Yuga Labs made $319 million after 55,000 NFTs sold out almost immediately.

While Otherdeed NFTs could only be minted in APE, Ethereum (ETH) was also required to pay for gas. The minting mechanic set by Yuga Labs called for a phased sale of NFTs, in anticipation of a temporary spike in gas prices that would then slow down the number of users minting NFTs:

“This Mint → Bump Limit → Mint → Bump Limit pattern will continue until the NFT supply is depleted. This approach is designed to prevent an apocalyptic gas war while encouraging the widest possible distribution.”

Ethereum gas tracker. Source: Eterscan
The screenshot above was posted by Redditor u/jeux99 who shared his experience of high gas fees at the time and asked:

“Why is gas now $450??? I’ve seen high gas prices, but never anything like it!”
As another Redditor, u/johnfintech, rightly pointed out, Etherscan data shows that many users have paid anywhere from 2.6 ETH or $6,500 to 5 ETH or $14,000 in gas fees.

Data on the largest contributors to gas payments. Source: Nansen
Referring to some of the issues surrounding the use of Ethereum during the NFT launch, Yuga Labs stated:

“We regret to have turned off the lights on Ethereum for a while. It seems quite clear that ApeCoin needs to migrate to its own network in order to scale properly.”
For those who have lost their ETH holdings to Gas due to failed transactions, Yuga Labs has promised to refund Gas to users.

See Also: Vitalik Buterin Proposes Calldata Per Block Limit to Reduce ETH Gas Costs

The infamous Ethereum gas fees have long been a community concern due to the influx of ecosystems hosted on the blockchain, including NFTs.

In November 2021, Ethereum co-founder Vitalik Buterin proposed a new limit on the total volume of transaction data for the entire block in order to reduce the total cost of transaction data on the ETH network.

While the community welcomed the proposal, it took more than four months to implement EIP-4488 on the Ethereum sidechain testnet on Geth. Community member Qi Zhou on Wednesday confirmed plans to upgrade the testnet within a month.

Source: CoinTelegraph