Yuga Labs, the powerhouse behind crypto sensations like the Bored Ape Yacht Club and CryptoPunks, faced intense backlash this week following yet another bungled NFT mint associated with its Ape-themed metaverse, Otherside. The incident has reignited discussions about the company’s reliance on Ethereum and spurred speculation about the potential adoption of alternatives like ApeChain.
The debacle unfolded when Yuga Labs introduced on-chain collectibles, known as “Loot,” as rewards for completing missions in Otherside’s Legends of the Mara game. However, users were dismayed to discover exorbitant gas fees associated with minting these NFTs, contradicting the promised free perk. This frustration echoed similar grievances from 2022 when a previous mint event incurred staggering transaction costs.
In a bid to placate the community, Yuga Labs initially offered a free in-game perk called “Catalyst” to affected users. However, this gesture was met with criticism, prompting Yuga’s co-founder, Greg Solano, to retract the offer and commit to fully reimbursing all gas fees incurred by Otherside players.
Despite these attempts at damage control, concerns persist regarding Yuga Labs’ continued reliance on Ethereum’s costly mainnet for on-chain transactions. Community members and observers have questioned the sustainability of this approach, with some advocating for the exploration of alternative blockchain solutions.
The ApeCoin DAO, an independent decentralized autonomous organization associated with the Bored Ape ecosystem, has been actively considering proposals from layer-2 networks such as Optimism, Arbitrum, and Polygon to facilitate the creation of ApeChain. While Yuga Labs has previously encouraged such initiatives, it has not publicly committed to utilizing ApeChain to address Ethereum’s traffic and cost issues.
Amid mounting pressure, even Yuga Labs’ leadership has acknowledged the challenges posed by Ethereum’s limitations. Spencer Tucker, Yuga’s Chief Gaming Officer, acknowledged the adverse impact of minting NFTs on Ethereum’s layer-1, signaling potential openness to exploring alternative solutions.
As Yuga Labs navigates the fallout from the NFT mint debacle, the prospect of transitioning to ApeChain or other blockchain alternatives looms large. Whether the company will seize this opportunity to chart a new course for Otherside remains to be seen, but the urgency to address Ethereum’s shortcomings is undeniable.