TIME Magazine introduces NFT, which makes gas charges on the Ethereum network chaotic

Yesterday afternoon (September 23), TIME Magazine announced a new NFT collection that will provide “unlimited access” to its website through 2023. currently about $ 310.

4,676 tokens were sold out within minutes of being sold.

However, that activity blocked the Ethereum blockchain and drove transaction fees sky high. According to an analyst named Banterlytics, buyers spent almost four times more in transaction fees than they did on the NFTs themselves. One address paid $ 70,000 for 10 TIME NFTs.

The plan for launch is simple – the NFT will go on sale at some point and potential buyers will need to prepare as quantities are limited.

This system cannot work outside of crypto currencies either. The sale of concert tickets and heavily discounted sneakers is dominated by automated “bots” that can put together a complete supply in a matter of seconds. The super scammers behind the bots can take advantage of this by charging unreasonable prices for assets in the secondary market (also known as “scalping”).

That also happened at TIME. According to the blockchain explorer Etherscan, the 100 addresses with the most NFTs currently have around 24% of the total supply.

The Ethereum blockchain solves the problem with so-called “priority fees”. These are additional fees that users can pay to motivate miners to accept their transactions first compared to users who don’t deposit a lot of cash. If too many people try to use the network at the same time, it will become overloaded. Users who can afford to pay these exorbitant fees can get involved effectively first.

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“Sympathy to everyone who tried and failed and now feels FOMO for the TIME drop. Even with months of experience navigating gas wars, war chests, and inflating over 5,000 priority fees and 10,000+ maximum fees, I still can’t get through. There’s another chance next week. “

Since all of the NFTs in the TIME collection are just the red TIME logo and not digital graphics, buyers still don’t know what they actually bought. TIME President Keith Grossman said the individual plants associated with the NFTs will be unveiled at 1am tomorrow morning. Users must use the Update Metadata button on the OpenSea digital marketplace to know what they own.

Grossman has made more and more forays into the crypto space over the past year. TIME started accepting cryptocurrency payments for subscriptions last spring and has released a range of digital magazine covers in the form of NFTs. TIME also added Bitcoin to its balance sheet through an agreement with crypto investment firm Grayscale.

Keith Grossman also admits that the NFT implementation is not ideal (TIME Magazine).

“I think we learned a lot about gas in general. There are things that cannot be controlled in the gas compartment. “

He explained that the decision to limit the number of NFTs per address was part of trying to stop bots.

At the time of publication, the lowest list price for a TIMEPieces was 3 ETH, or around $ 9,500.

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“It’s so broken. There are casting bots, please stop these games. “

Despite the chaos, Grossman is very proud of today’s start.

“We will make sure that all errors or unplanned errors are corrected next time.”

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Mr. Teacher

According to Coindesk

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