- Runes is a new protocol from the creator of Bitcoin’s Ordinals protocol, Casey Rodarmor, that will allow the creation of fungible tokens on the Bitcoin blockchain
- Runes is designed to be more efficient than the existing BRC-20 standard for fungible tokens on Bitcoin, using the UTXO model instead of an account model
- Runes is scheduled to launch on Bitcoin’s mainnet after the next halving event, which is expected to occur on April 20, 2024
Bitcoin is back in the spotlight with rising prices, anticipation of the upcoming halving event, and hype around the new Runes protocol. Runes won’t launch until the halving in April, but there’s already a lot of excitement building up. Here’s a comprehensive look at everything we know so far about Runes.
What are Runes?
Runes is a new protocol created by Casey Rodarmor, the developer behind Bitcoin’s Ordinals protocol. With Ordinals, Rodarmor made it possible to create NFT-like assets on Bitcoin. Runes similarly allows the creation of fungible tokens on Bitcoin, but using a more efficient mechanism.
How Do Runes Work?
While Ordinals are non-fungible, Runes are fungible tokens like ERC-20 tokens. Runes use Bitcoin’s UTXO model rather than an account model like Ethereum. This is believed to be more efficient and completely on-chain.
When Does Runes Launch?
The Runes protocol will launch concurrently with Bitcoin’s next halving, expected around April 20th. The halving cuts miner rewards, while historically driving up Bitcoin prices.
What Projects are Building on Runes?
Several projects have already started building around Runes despite the protocol not yet being live, including:
- RSIC – An Ordinals project minting a RUNE token
- Runestone – Airdropping Ordinals that will convert to a dog meme coin
- Node Apes – PFP NFT combined with a Runic Miner Ordinal
- RuneX – A DEX for Runes tokens
- PUPS – Popular dog meme coin migrating to Runes
What’s the Point of Runes?
According to its creator, Runes aims to bring attention and liquidity back to Bitcoin from other crypto projects. Runes provides a venue for creating speculative assets on Bitcoin.
Conclusion
The upcoming launch of Bitcoin’s Runes protocol is generating hype despite few details being public yet. With the halving approaching, many projects are preparing fungible tokens to launch on Runes on day one. It should bring more attention and experimentation to Bitcoin amid the halving.
