04 May 2022 09:03, UTC
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Analysts revealed that the creators of Bored Apes deliberately deployed an unoptimized smart contract that cost users $70 million
The spike in commissions on the Ethereum network was triggered not so much by the high demand for Yuga Labs’ Otherside project’s virtual earth, but by a non-optimized smart contract. This was reported by Coin Metrics analysts in their newsletter.
Experts say at least a few factors led to the spike in fees. First, the smart contract for Otherside was not optimized. As Twitter user @WillPapper pointed out, the project developers were so lazy to remove ready-made templates from the code that they left everything as it was, which, in turn, led to increased costs and cost users an extra $70 million.
“Changing a few words. [в коде] would save [суммарно] More than $80 million. That’s why it’s so important to know the basis [программирования смарт-контрактов]”,” wrote @WillPapper.
Ethereum co-founder Vitalik Buterin conceded that optimizing the smart contract is unlikely to have fundamentally changed the situation, but acknowledged that Yuga Labs should have created a mechanism to dynamically shape the price tag for virtual earth, rather than setting a limit of 305 APE (~$4200).
Even though Yuga Labs implemented buyer verification and even limited the first wave of land generation to 2 NFTs per address, demand still exceeded supply. This means that not everyone who wanted land from Otherside was able to do so.
Such difficulties eventually led to market participants competing with each other, specifying ever-higher fees to outbid each other’s transactions and become first in line to generate virtual earth. As a result, the average commission per transaction eventually passed 2 ETH (~$5600).
As a reminder, Yuga Labs representatives apologized after the auction for disrupting the Ethereum network and offered an alternative. According to them, the ApeCoin ecosystem needs its own blockchain to “scale properly.”
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