jakiro
Author: Alfred @Gametorich, Cycle Capital
1. What is rune
Beginning in early 2023, the BRC-20 standards proposed based on the Ordinals protocol set off a wave around BTC asset construction and hype, and promoted the hot spot and funding of ecological infrastructure such as BTC, DEFI and other ecological infrastructure.The long -term development of ecology has played a positive role.However, the hype of the BRC-20 also brings Bitcoin’s network congestion and redundant data. In this regard, Casey Rodarmor, the founder of the Ordinals protocol, proposed the Runes protocol in a blog in September 2023, which will build a BTC UTXO-basedThe alternative to the tokens is the “Rune Agreement”.
The Runes protocol was officially launched when Bitcoin halved on April 20 this year. When it was launched, the GAS Fee of the BTC network was pushed up to 1000Sats because of the popularity of the first batch of rune casting, and the popularity was unprecedented.But soon the market’s attention shifted from runes to other tracks. In the past month, the price of DOG has risen from the sideways at the bottom to a new high, driving a wave of rising and new attention.
1. Rune operation method
The Runes protocol uses Bitcoin’s native UTXO model to issue and track tokens, which is more native and decentralized.In addition, the rune balance is directly held by UTXO, and an UTXO can accommodate any amount of runes.The “garbage” UTXO will not be created. This mechanism is more efficient and reduces the space occupation space.
Specifically, Runes’s data is stored in the OP_RETURN field, which is an operating code from Bitcoin transactions (“OPCODE”) and allows 80 bytes of data to store in the transaction output.The transaction uses the OP_RETURN tag in the protocol message, and push it with the data of the uppercase letter R.The issuance or transfer transaction specifies and assigned to UTXO in the subsequent data push.The invalid protocol message will cause the runes to be burned.
The figure below intuitively explains how the Runes protocols are issued and transferred:
2. Comparison of runes and BRC-20
Compared with the BRC-20, there are several important features
（1）Runes是专门设计为可替换代币，基于BTC原生的架构即可，不依赖链下数据且只需要一次铸造，更为简单高效。而BRC-20是以更适合构建非同质化代币的Ordinals协议为基础的，依赖链下索引，且需要铸造两次，整体更为复杂。
(2) Runes data is stored in the OP_RETURN field of 80BYTES, while the BRC-20 uses witness data, up to 4MB, in contrast, the tokens built by Runes are more compatible, with less space occupied, and reduced the space.Blockchain swells.
(3) The Runes protocol is based on the UTXO model and can be fused with the native BTC architecture and inherit security.In the future, it has stronger expansion. With the lightning network and BTC L2 and other BTC ecological development routes perfectly compatible.
3. The meaning of runes
(1) Further created the BTC asset issuance method that can be broken.Since the BRC-20 brings inscription assets, this new asset form will introduce more attention and funds into the BTC ecology.The Runes protocol later created a special, alternative to BTC, which is more suitable for token standards for speculative activities.
(2) The asset issuance method is simpler, more efficient, and more compatible than before.The Runes protocol is issued based on the UTXO architecture of Bitcoin’s native UTXO. It does not need to rely on third -party and under -linked data, occupy less space, reduce network congestion, and seamlessly compatible with various upgrades and ecological solutions of the BTC network in the future (such as L2, Bridge, etc.).
(3) The hotness of the asset can further solve the safety budget of Bitcoin.Rune transactions can contribute more transaction costs to the network. Especially after the decrease is reduced, the miners’ output decreased, which has a new source of revenue, which has a positive effect on maintaining the security and sustainability of the network.
2. Circuit data overview
From the perspective of BTC network data, in terms of transaction volume and transaction share, runes currently account for about 20%of the total network.在符文协议刚推出时，交易非常fomo，占比最高达81.3%，随后快速进入冷静期，当前，符文在网络的占比约为10–40%，结合数据可观测当前符文市场的How is the heat.
Compared with Rune and BRC-20, the current runes have become the most active L1 assets in transactions outside the non-BTC transaction. The proportion of the two is around 4: 1.The minimum is about 55%, and the current rune transaction popularity has surpassed the BRC-20s.
Judging from the contribution of expenses, the current native Bitcoin transaction costs account for 70–80%, runes accounted for 10–20%, and the total ratio of Ordinals and BRC-20, which is about 70%of runes.At present, rune speculation has broaden the source of income from BTC network miners and has the highest proportion of new assets.
If the runes and BRC20 are currently regarded as MEME, compared to the market value of other chain MEME coins, the market value of the MEME on the Bitcoin chain accounts for the lowest, less than 0.1%of the chain.In the horizontal comparison, ETH and SOL chain’s MEME leaders account for more than 3%of the market value of the chain. BTC is the highest chain, market value, and mainstream funds. The market value of MEME coins has further expanded.The vertical contrast, in terms of current runes as a whole in terms of transaction volume and contribution costs, it has exceeded the BRC-20, but there is also a gap between the dragon of Rune compared to the BRC-20 dragon.Potential.
3. Rune evaluation system and DOG analysis
This article believes that the popular project evaluation of runes can be analyzed from three stages, nine dimensions, and early attention to distribution methods, decentralization, founders and story nature; mid -term attention: dissemination continuity, price continuity; mature period:Transaction volume, market value, chip structure, price stability.
Combined with the above logic, this article believes that the dragon one of the current rune track is DOG:
1. distribution method: distribution design one by one and undertake all chain costs, and the pattern is very large.
Published in the first division stages of the Rune Agreement, first launch the Rune Stone NFT (RUNESTONE) for hype. After waiting for a half -day rune agreement to be launched, the first runes of the runes holder airdrop.The first rune airdrop is free for the airdrops, and the community raises funds by the community.
2. Differential degree: Early common interests are high -quality and huge, and have achieved a large amount of fast -cold launch and a large number of core users.
Rune Stone Air Vote gave 11W+users who actively participated in the BTC inscription ecology in the past. The rules are at least 3 inscriptions in the 826,000 blocks (excluding “Text/PLAIN” or “Application/JSON”, which contains available available available.Search the curse inscription according to Ordinals), the first rune DOG airdrop to 7W+firm runes holder.
3. Founder and story:
The founder Leonidas is OG in the BTC community and the co -founder of the cutting -edge Ordinals browser Ord.io. It has a close relationship with Casey, founder of Oidinals.The instructions are very topic and orthodox; Leo found the sculpture artist for custom creation in the design of Rune Stone, which is artistic.Published on the most consensus Bitcoin network in the form of New Type.
4. Propaganda continuity: strong and continuous attention attractive attraction
The founder Leo, as the BTC community OG, has relatively powerful communication and resources. Especially in the European and American communities, it is frequent in publicity., Continue to capture the attention of the market.
5. Price continuity: Rune Stone and Rune relay hype
Runestone NFT preheated before the Runes protocol was launched. The NFT price rose steadily from March -April, with a maximum of 0.1166BTC.After the first rune DOG airdrop, the runestone price fell, and the rune DOG took over speculation. After a monthly market pricing and consolidation, the price rose from about 0.0025 to the highest 0.0097 from mid -May.0.0078.There are also two airdrops in the subsequent rune stones (when it becomes the first MEME Coin with DOG later this year), according to the price of the DOG, it will re -increase the price of runes.
6. Transaction volume: transaction volume cliff -like leading other runes, the best liquidity
The overall liquidity of the rune sector is poor, and since the launch of DOG, the overall timeline has been the target of the trading volume.The current transaction volume is mainly concentrated in Gate, accounting for more than 80%. Secondly, Bitget, OKX wallets, and Magic Eden. The current daily transaction volume exceeds 7000W dollars, and Runes X, which ranks second in the transaction volume, is about 200W.DOG cliff -like leading all rune marks and reaching the transaction volume of mainstream tokens.
7, market value: market value overall ranking first ranking
After eliminating the ZZZ rune with a low transaction volume and a high unit price, the market value of the DOG basically maintains the first market value after the release.
8. Chip structure: The holder is huge, but the chips are not concentrated enough
The holder on the DOG chain remains stable at 7W+, ranking third in runes. Because the main liquidity is on the CEX, the actual holder should still be the first. The number of holders is huge and the consensus is strong.However, the largest currency holding ratio on the chain is about 1.69%, and the holdings are constantly reducing their holdings recently. More than 1%have only 5 addresses. The fifth -ranked address is increasing rapidly, but the overall chip level is not concentrated enough.It may cause the reason why the current dragon has a clear status but cannot be on the front line CEX.
9. Price stability: stable price
The price of the DOG price is stable and strong after the completion of about 0.002 at the bottom. It can be further increased after a stable consolidation of 0.004 and 0.007 points, and the buyer power of the volume price in the overall market is still strong.
Based on the evaluation system proposed in this article, it can dynamically analyze the head project of the rune track and screen the new casting target. For space, this article will not be discussed for the time being.
Fourth, summary
1. Runes are a protocol for alternative token design. Technically, the BRC-20 is simpler, more efficient, and more compatible than the BRC-20.Coins have become new assets that must be valued.
2. The current main role of runes is to enhance the attention and capital capture of the Bitcoin network as MEME coins. It has the significance of sustainable development. However, from the data point of view, it has not ushered in a comprehensive outbreak and has further price discovery potential.
3. This article proposes the three stages of the rune project and the nine -dimensional evaluation system.Compared with other targets, the current DOG is in the position of the track dragon, but the chip structure at this time is relatively scattered. Logining to the front -line exchange may take a certain amount of time accumulation.
