The highest amount lost in gas fees was 5.369 ETH or roughly $16,000
Yuga Labs issued a refund of almost $5 million to customers’ to reimburse gas fees from failed transactions caused by the Otherside NFT land sale on April 30. Notably, a failed transaction resulted in no minting, leaving many unhappy customers who did not expect gas to reach such levels.
The Otherside land sale created unprecedented levels of hype in the NFT community, and therefore Yuga Labs created a KYC-gated sale. Despite the precautions, network congestion on Ethereum became so bad that people were paying upto $11,000 for one transaction. Some of these transactions failed due to network congestion, leaving customers empty-handed. Thankfully Yuga Labs stepped up to refund them. However, there are some criteria for being eligible.
- Yuga Labs Otherdeeds NFT land sale pushed Ethereum gas fees through the roof and caused 14,000 failed transactions, resulting in a loss of almost $5 million in gas fees
- Yuga has returned $4.6 million in ETH at writing using Multisender
14,000 failed transactions
The overwhelming demand and success of the land sale caused more than 14,000 failed transactions across 11,828 wallets, resulting in a loss of $4.8 million in gas fees at writing.
The highest amount lost in gas fees was 5.369 ETH, or around $16,000, while the highest amount lost in a single transaction was 3.76 ETH, or about $11,000. Yuga is returning funds using the Multisender app, a helpful tool that allows the batching of multiple transactions into one, as seen below.
Starting May 4, Yuga Labs sent out more than 1,589 ETH in 19 transactions worth around $4.6 million. A quick look inside the wallets of a few of the recipients shows that the ETH has been delivered and that Yuga Labs has made good on its promise.
How to check if you got a refund
If you were one of the affected people, you can check your wallet in a few steps to see if Yuga Labs has refunded the lost gas fees.
- Go to Etherscan.io
- Input your wallet address in the search bar
- Click on “Internal Txns”
- They issue a refund for gas fees from Multisender.app. If you had multiple failed transactions, they will combine the refund into one transaction.
- Stay safe. The refund is in ETH and issued through Multisender.app.
- DO NOT interact with any tokens you’re not expecting in your wallet. Also don’t click them, and do not try to delete them.
- DO NOT connect your wallet to any site claiming to have your refund.
Onwards and upwards
In the aftermath of what can be described as the most anticipated NFT drop so far, a few key things were left on the table for debate. First of all, the fact that an NFT collection almost brought Ethereum to its knees. Second, there were thousands of hopeful buyers left empty-handed and poorer than they started. And this happened more than five years after CryptoKitties congested the Ethereum blockchain. It’s safe to say that this is a wake-up call to those screaming about the scalability of Ethereum.
The Otherdeeds’ mint leaves the NFT market with a somewhat bittersweet experience. On the one hand, it is impressive to witness the brand that Yuga Labs created as a Web3 company in only one year, becoming one of the most exclusive communities in the world. The drop provides Yuga with $340 million in APE from the direct sale and at least $21 million in creator fees from the 150,000 ETH ($420 million) traded in the secondary market. Otherside positions Yuga Labs at the forefront of exploring the exciting convergence between gaming and the Web3 metaverse.
The question remains whether the team could have conducted things differently to avoid the 55,000 ETH ($150 million approx.) burnt. Moreover, the event left the Web3 community examining the best way to deliver NFT drops in the future. Nonetheless, the sales show us that the NFT space is maturing. With over $6 billion in NFT trading volume in April alone, the craze is far from over. The most innovative brands are taking the lead in what is sure to be a long road ahead for NFTs.
The above does not constitute investment advice. The information given here is purely for informational purposes only. Please exercise due diligence and do your research. The writer holds positions in various cryptocurrencies, including BTC, ETH, and RADAR.