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Bored Apes creators intentionally jacked up fees on the Ethereum network

Bored Apes creators intentionally jacked up fees on the Ethereum network

The skyrocketing of Ethereum fees was triggered more by the non-optimized smart contract than by the high demand for Otherside's virtual land project from Yuga Labs.

According to Coin Metrics, Otherside's smart contract has not been optimized. As mentioned by Twitter user @WillPapper, the developers got so lazy to remove ready-made templates from the code that they left everything as is, leading to an increase in costs and costing users an extra $70 million.

Even though Yuga Labs implemented buyer verification and limited the first wave of land generation to 2 NFT per address, the demand still exceeded supply. This means that not everyone who wanted land from Otherside could do so.

Such hardships eventually caused market participants to compete, setting higher and higher fees in order to overwhelm each other's deals and become the first in line to generate virtual land. As a result, the average transaction fee was over 2 ETH (~$5600).

Following the auction, Yuga Labs apologized for disrupting the Ethereum network and offered an alternative. According to them, the ApeCoin ecosystem needs its own blockchain to “be scaled properly.”

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