Yuga Labs’ Metaverse project Otherside land sale surpasses $3 billion

MetaversePlanet May 6, 2022Last Updated: August 14, 2024

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Otherside, the metaverse project from Yuga Labs, the parent company of Bored Ape Yacht Club, recently opened its doors to users. Much like the Bored Ape Yacht Club NFT collection and the ApeCoin token, the release of Otherdeed NFTs (OTHR Tokens) by Otherside garnered significant interest from collectors.

The intense demand resulted in an unprecedented surge in transaction fees on the Ethereum network. Users paid a substantial $177 million (approximately 63,918 ETH) in gas fees for Otherdeed. So, what exactly led to this situation?

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Otherside Tokenomics

Yuga Labs aimed to release a total of 200,000 Otherdeeds for sale, with the first 100,000 offered through an auction held last night. The remaining 100,000 Otherdeeds will be distributed as rewards to “Pilgrims” (Voyagers) who hold the Otherdeeds they have acquired and continue to contribute to the growth of Otherside over time. Notably, Otherdeed NFTs provide the opportunity to claim land in the Otherside Metaverse.

Owners of Bored Ape and Mutant Ape NFTs will have the direct option to claim Otherdeed NFTs. Additionally, it is stated that individuals outside of collectors can purchase Otherdeeds using ApeCoin. According to tokenomics information, BAYC holders own 10% (10,000) of Otherdeeds, MAYC holders own 20% (20,000), and Yuga Labs and developers own 15%. The remaining 55%, or 55,000 Otherdeeds, were acquired using ApeCoin.

According to data from the Dune platform, a total of 83,367 Otherdeeds have been minted. Out of these, 55,000 were sold, and over 13,000 are owned by BAYC and MAYC holders.

In terms of gas fees, users have paid a staggering $177 million (approximately 63,918 ETH) to participate in Otherside, making it the second-highest after OpenSea. Current gas fees are around $205,000.

It’s worth noting that Etherscan faced temporary issues and almost crashed during the transactions last night.

Graphics prepared on the Dune platform vividly illustrate the high demand witnessed in the auction process. According to this data, the gas fees used in the failed mints stand out at approximately 1,657 ETH ($4,562.96).

Moreover, due to overwhelming demand, other users had to pay gas fees of up to about 3 ETH for transactions on the Ethereum blockchain.

Is the problem in the Ethereum blockchain or the contract?

Yuga Labs, through a series of tweets, declared that the Ethereum network is no longer sufficient for their needs. Acknowledging that the demonstrated demand surpassed everyone’s expectations, the company clarified that moving forward, ApeCoin will necessitate its own blockchain for scaling.