A few Twitter users have indicated a shocking BAYC smart contract function, provoking concern. Apparently, the function permits Bored Ape holders to mint 30 apes in a single transaction without even paying the mint fees. What exactly is the BAYC smart contract function that is causing concerns now? Let’s dig in and understand this concern.
What is a Smart Contract?
In simple terms, a smart contract is a digital contract reserved on the blockchain as a piece of code. When certain pre-established constraints are met, the contract is automatically executed. In different words, Smart contracts are prepared to automatically fulfill the terms of the agreement between those involved.
For NFTs, all the information of a token, such as ownership specifics, transactions, identities, and so on are securely stored in a smart contract. Further, most NFT smart contracts establish some rules and conditions for trading NFTs.
Also check out, Seth Green Bored Ape IPs face Legal Challange
About BAYC Smart Contract Function
Earlier on Monday, June 6, a DeFi and NFT developer, who goes by the name foobar, took to Twitter to explain their concerns about the BAYC smart contract function.
So, why exactly is this contract problematic?
As foobar indicated, If the token contract owner (a personal wallet, not a multisig) gets hacked or phished, you might witness thousands of new bored apes minted and dumped onto the market.
Although, this is not the first time users have raised some concerns over this BAYC smart contract function. Back in June 2021, BAYC tweeted in a response to a similar issue tweet saying they were never going to call that function again and also mentioned that they were planning on revoking ownership in the next day or two.
Unnecessary to say, BAYC is yet to withdraw ownership.
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NFTHI does not recommend any kind of Investment in NFTs or NFT trading. All the strategies are merely educational references.
Conduct thorough research before you start with NFT trading.