NFT Glossary Deep Dive: Gas Wars

NFT Glossary Deep Dive: Gas Wars

Ellen Britt for CNT #NFT

Gas wars is the term given to the skirmishes that happen when too many people try to mint the same project all at once within a small time window. 

Of course, the validators prioritize people who pay more for gas, which naturally leads to a bidding war. Prices are then driven ever higher as people try to get ahead of the line.

Whales Have The Advantage

The average person gets priced out of the action fairly quickly as gas prices rise higher and higher, but whales (meaning those with deep pockets) will not be affected the same way. In fact, sometimes the whales will push gas prices up so they can get as many NFTs as they want.


 

That’s good for them, but it also drives up the average transaction fee for everyone who is involved with the drop. Not only that, even people just trying to complete a transaction on the Ethereum blockchain will see an increase in gas prices. 

Usually, and fortunately, these gas wars and their sometimes exorbitant prices don’t last very long, but they can be painful if you are caught in the middle.


 

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By Ellen Britt

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