Due to the new expectations brought by the founder of Ordinals, the popularity of "Runes" launched on the day of Bitcoin halving soared in the short term. It can be said that the Bitcoin chain was extremely busy that day, and Bitcoin transaction fees soared. Transactions of hundreds or thousands of US dollars were everywhere, which not only caused congestion in the Bitcoin network, but also made Kuang Gong's daily income exceed 100 million US dollars, setting a record high.
Since its launch after the halving, it has accounted for more than two-thirds of Bitcoin's trading volume. In addition, several mainstream platforms such as UniSat, OKX, MagicEden, etc. have also successively supported the Rune market. As this period of fermentation progresses, let's take a brief look at some of the current progress related to the Rune track:
01
What exactly are runes?
Rune, as a new Bitcoin Token protocol, was proposed by Casey, the founder of the Ordinals protocol. Its goal is to solve the problems associated with BRC-20 Token, especially the congestion of the Bitcoin network and poor user experience caused by a large number of junk UTXOs (unspent transaction outputs).
Advantages of Runes:
1) Simplifies the process of creating alternative tokens on the Bitcoin blockchain and reduces the use of on-chain resources.
2) Compared with other solutions, such as BRC-20, RGB, and Taproot, Bitcoin Rune provides users with a simpler way to create and manage tokens, which can improve the usability and interchangeability of tokens while avoiding the generation of a large number of useless UTXOs.
3) Rune uses the OP_RETURN model. Compared with the BRC-20 Token taking up a lot of space, the storage method of Rune saves more Bitcoin network resources.
4) Since Rune inherits Bitcoin’s UTXO model and is highly compatible with the Bitcoin blockchain, it can be seamlessly integrated with the Bitcoin ecosystem, so Rune Token is able to enjoy the security and stability of the Bitcoin network.
It can be said that the Rune protocol is simpler, more efficient, and more developer-friendly than the BRC-20 protocol.
Some others feel that the current rune names are too long and not as meme-able as the four-character BRC-20 inscriptions. The reason is that Casey designed it this way to prevent name squatting. The naming length is 1-26 characters, but at the beginning, only names with more than 13 characters can be etched. With every 17,500 blocks, the minimum number of naming letters will be reduced by one character. In almost four years, all names can be used, thus creating a dynamic naming environment.
02
Several major platforms that support Rune
At present, the platforms that support rune casting are mainly concentrated in UniSat, OKX, and MagicEden. Each of them has its own advantages and disadvantages, and generally these three are sufficient.
Transaction proportion of each market, source: https://geniidata.com/user/poshi/runes-market-overview
Unisat and MagicEden both have the function of bulk purchase, and their depth is better than OKX in all aspects. The reason for this is that overseas users prefer to use Unisat, and the popularity of Rune is higher overseas than in China. I usually use Unisat and MagicEden for comparison, and use OKX for new listings.
As can be seen from the gas on the Bitcoin chain, the overall popularity of Rune is not high. Recently, there has been a gradual increase in FUD (an abbreviation for fear, uncertainty, and doubt). Most KOLs complained about the new issue system of Rune Protocol, which requires high gas volume for casting, and then rolls up the floor after casting. In addition, the handling fee has blocked most buyers who scan orders (when the gas is high, the purchase may be cut in half), resulting in only selling but no buying, and finally rolling up the floor, which will only make Kuanggong cheaper.
As for whether Rune can develop in the future, it is still unknown. After all, it took several months for BRC-20 to become popular.
03
Premium Rune Features
At present, the gameplay of runes is actually similar to that of memes, and traffic is still king. Here are a few criteria for reference:
1) Are there any well-known KOLs with their own traffic: Support from famous artists and other celebrities, like Casey, and KOLs related to various top projects.
2) Special meaning: Like SATOSHI•NAKAMOTO Satoshi Nakamoto, or related to some top projects.
3) Public support from top project owners or communities: Top Bitcoin NFTs such as SHIB, Node Monkey, and Puppet Monkey have begun to support the creation of runes.
4) Number of Holder Addresses: The number of addresses is generally related to popularity and how many people are involved.
5) Is there any pre-mining? What is the percentage? Generally speaking, unless the concept is particularly good, the pre-mining runes are relatively pitfalls.
All kinds of new things come out in an ever-changing manner, and often comprehensive judgment is required.
04
Rune Classification
Currently, runes are divided into three main categories:
1) Airdrop type, led by the project owner:
Projects launched by Ordinals OG (Original gangster), such as Runestone and RSIC, directly snapshot NFT holders. Generally, NFT will plummet after the snapshot ends.
Well-known projects on ETH or other chains, such as Prometheans.
2) KOLs and artists
Influential KOLs like Casey and LEO are calling out orders. You need to have some understanding of KOLs. Some people call out a new one every few days, and no one can stand that.
3) Specific special meaning
Rune 0, UNCOMMON•GOODS, takes four years to complete, which is similar to the Sats of BRC-20, with a long time period. SATOSHI•NAKAMOTO (Satoshi Nakamoto), the concept of Satoshi Nakamoto, everyone understands.
05
summary
The above is the introduction to runes. It can be seen that the current development of runes is very rough. It can also be seen from the recent on-chain fees of Bitcoin that the popularity of runes has dropped rapidly. However, as the mainstream narrative of this round of major market conditions, the Bitcoin ecosystem is still worthy of attention.
Maybe after a while, the wind direction will change again, and players who play more on the chain should keep an open attitude towards this new thing. Of course, the handling fee is expensive, and you must pay attention to the risks. Many people have been "buried" in it.
What do you think about the future development of Rune? Feel free to share your views in the comments section.