Exploring the release of the Runes protocol you need to pay attention to

Author: IGNAS | DEFI Research Translation: Shan Ouba, Bitchain Vision Realm

Bitcoin is half -halved and the Runes protocol is coming!

Bitcoin is halved in 3 days, and the Runes protocol will be launched at the same time at the same time!

I believe you have heard of the Runes protocol, but I want to share the views of my short -term loser but long -term optimistic, and how to prepare, and which protocol/tools are used to seize the opportunity.

View of the Runes protocol (short -term)

First of all, I will share some of my negative views on Runes.

I expect the preheating market to continue to be hot before the agreement is launched.Assets like RuneStone, RSIC and PUPS have risen sharply, and those holding these assets will receive the Rune token airdrop.The newly issued RUNE tokens may perform strong for a period of time.

However, just like the NFT boom fades after the JPEG is revealed, the market will cool down.The following are some reasons:

For traders with insufficient funds, Bitcoin’s transaction costs will become very expensive, thereby restricting their actively trading Runes (which in turn will promote the development of Bitcoin L2).
Runes may not be significantly improved in terms of transaction experience, because the transaction methods of UTXO and BRC20 are similar to NFT.

The early trading interface of Uniswap and Ordinal wallets is the same as the BRC20. There are only two kinds of information in one transaction: 1) the number of tokens and 2) each package price.
The number of newly issued RUNE tokens will be very large: dozens or hundreds of new tokens may be cast every day (and high handling fees), which will disperse the attention of traders and reduce the inflow of each token.
At least at the beginning, Runes, like the BRC20, is Memecoin.With the fading of “new”, this emotion may weaken, especially if there is no RUNE token that can maintain a rise and retail investors lose money.
In addition, the RUNE 0 (Uncommon • Goods) series set by Casey Rodamor itself is also difficult to be pulled up because it can be cast free of charge within 4 years, and only 1) can be cast for each transaction.

Opinions on the Runes protocol (long -term)

If my judgment is correct, the boiling heat will cool down quickly after the Runes protocol will be cooled, and the best opportunity will appear after selling.

The following is the reason:

The hype of narrative often waves after waves.

The first wave is usually driven by the excitement of novelty, usually comes from innovative technology or simple MEME potential.Meme token is a bit like gambling: most of the raised MEME tokens rarely rose in the second wave.
However, the speculation based on technological innovation is more likely to recover after the firing boom fades.Ordinal Inscriptions was launched in December 2022, but the first wave of the first wave was launched with the BRC20 in May 2023.The freely cast BRC20 rises quickly and falls, but as developers continue to build, the second wave and the third wave arrived at the end of 2023.
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Now we are the fourth wave of Ordinals, accompanied by the hype of preheating Runes.Although many narratives cannot survive in the first wave (see ERC404 transactions), I believe Runes will have the fifth wave, sixth waves, or more waves.

The reason is as follows:

Multiple agreements are building infrastructure for the Rune token.But it takes time to develop a new DEX/market.For example, Saturn is building a familiar DEX for Rune, but it takes time to make its user experience smooth.I will share more of more noteworthy agreements below.
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The Runes agreement aims to integrate the BTCFI industry for development around a single standard.Imagine that if there is no uniform ERC20 standard, what will Ethereum look like -tokens will not be able to switch between AAVE and Uniswap.This is the current situation of Bitcoin.Before Runes, we had BRC20, CBRC-20, ARC-20, BRC-420, etc., a mess.
I have also been optimistic about Runes for a long time because it seized three pillars of the booming crypto ecosystem.This is my framework for this bull market.

In my opinion, the success of any encryption ecosystem is driven by three key elements: technological innovation, token casting opportunities and charming stories.The following is how Runes integrates into it.

Technical innovation: We were previously informed that NFT and tokens could not exist on Bitcoin.However, the performance of Bitcoin NFT in this cycle has surpassed Ethereum NFT.Bitcoin’s first BRC-20 toke ORDI in Binance traded a transaction price of $ 1 billion.

The trick is to convert the replaceable Satoshis into irreplaceable Cong.When there is an inscription on a Cong, it is no longer equal to another Cong.

This is one of the most exciting “from zero to one” innovation in this cycle.If you want to know how we go to this step, please check my previous blog articles about BTCFI.

Token casting: This is one of the reasons we have an encrypted cycle.During each bull market, the new Yaibuan is created out of thin air and giving them crazy valuation.Just as the central bank can overwrite French dollars, with the flow of funds and attention into the encryption field, we also tend to issue too many tokens.As a result, the market crashes.

This cycle is not different.Before the start of this round of bull market, I wrote more articles about how it happened.

However, tokens have been limited to smart contract blockchain, such as Ethereum/Solana.Until the appearance of Ordinals theory, it unexpectedly gave birth to the BRC20.

I was worried about BTCFI due to infinite tokens.BRC20 (and Runes) can be easily cast without any actual value accumulation, because there are no smart contracts on Bitcoin.

However, the Ordinals community successfully found the convergence of Schelling Points by giving the “veteran” value to these NFT collectibles to these NFT collectibles.

In addition, without direct value accumulation, all BRC20 tokens are essentially MEMECOIN.Only ORDI as the first BRC20 tokens successfully attracted attention, but now PUPS may have crossed the “Rubyon River” and become the real Memecoin on Bitcoin.The higher the price of PUPS, the stronger its belief in retail speculators.

Finally, a continuously developing BTCFI ecosystem is emerging, and its native currency challenges Memecoin’s status and makes His holding BRC20/Runes as a cumulative token.I will introduce this in detail later.

Fastened narrative stories: narrative gives the technical and token economic model vitality, so that people can understand, believe and participate in it.

For example, Bitcoin Ordinals is a sexy story as the safest and most centralized blockchain.In addition, play Memecoin on “Old Stubborn” Bitcoin?This is much cool than playing Memecoin on Solana or Ethereum.

The encrypted Twitter circle is catching up with the technological innovation of Ordinals/Runes, and the related narrative is very hot.

If you missed the time of warm -up Runes tokens, then this short -term loser but long -term optimistic scene may be the best situation.It allows you to have enough time to study and prepare before the second wave of Runes waves.

The best time to learn is yesterday, followed by today.Therefore, this is a brief introduction to Runes.

I need to understand the information about the Runes protocol

The Runes protocol was developed by Casey Rodamor, the founder of the Ordinals theory as a refutation to the BRC20.Casey is not a fan of the BRC20, so it is expected that Casey will start with the alternative tokens as it can be replaced by NFT.

You see, BRC-20 tokens use JSON data (text format data) on Cong.They are more easy to transaction as NFT instead of alternative tokens.For example, you need to “inscriptions” before buying or transferring these tokens (by conducting chain transactions on Bitcoin).

In addition, the BRC-20 will create “garbage” or “remaining” transactions that block the network.

On the other hand, Runes uses the UTXO model of everyone’s headache.The following is my decomposition:

Ethereum follows the account -based model, while Bitcoin uses UTXO (unprepared transaction output) to track the user status and balance.

For example, if you have 1 bitcoin UTXO and want to send 0.3 Bitcoin to others, the transaction will use the entire Bitcoin UTXO as input.The transaction will then create two outputs: one will send 0.3 Bitcoin to the receiver, and the other will return 0.7 Bitcoin (minus any transaction fee) as two new UTXO to your address.

Therefore, technically, when you say “I have 1 bitcoin”, you should say: “I have UTXO that can make me spend 1 bitcoin.” (Thank you this sentence that Alchemy provided.)

In the above example, when you use 1 Bitcoin UTXO as input, the UTXO will be “destroyed” and will cast two new UTXO: 0.3 UTXO sends it to the receiver, 0.7 UTXO (minus minus (minus minus (minus minusFee) Return to you.

As you can see, these UTXOs are like NFT!

However, although each inscription (such as BRC20) is unique, the RUNE of each unit is the same.They are interchangeable tokens.You can transfer the RUNE tokens like ordinary Bitcoin, without the need to perform the BRC20 inscriptions every time they send them.

For Runes, UTXO can now store 1 Bitcoin, 100 RUNE tokens A and 50 Rune tokens B as “RUNESTONE”.

Tip: By sending the amount of Bitcoin you are willing to invest in each RUNE to create multiple UTXO.In this way, you can participate in multiple tokens without waiting for the previous transaction.Or use Luminex.

RuneStone (do not confuse it with RuneStone Ordinals) is the Rune protocol message, which stores in the Bitcoin transaction output when you send UTXO.

The Runes protocol is about to be launched at the Bitcoin halving block!This is the summary of some things that are about to happen, and the terms you should understand when you see related discussions on social media.

Terms of the Runes protocol

RuneStone: Rune protocol message, stored in the Bitcoin transaction output.It can contain information about the new runes of ETCHING, the existing rune of the casting, and the transfer of runes between the address.
ETCHING: The process of casting Rune for the first time.After the carving is completed, the attribute will not be changed.
Edicks: It has not been covered, and will be introduced in future articles.

You can learn all these cool words in the official documentation of Casey to impress your friends.

Here are some other simple terms and facts about Runes you should understand:

RUNE Name: Initially, only more than 13 characters names can be used; this limit is reduced every 4 months, and all names can be used until four years later.
Rune number: indicate the creation order of Rune, starting with “Rune 0” and then “Rune 1” and so on.
The first Rune (uncommongoods): free cast, no supply limit, each casting can only be cast 1 UG.1 UG is basically equivalent to Bitcoin trading costs.
RUNE ID: generate according to the transaction block and location, such as “500: 20”.
You can cast RUNE by entering the Rune ID.For example, the Runigun robot on Telegram will allow the casting Rune through Rune ID.Therefore, if you know the ID, you can do not rely on third -party UI for casting.You can view the robot (Disclaimer, I have no affiliated relationship with this robot, but found it on X).
Rune symbol: Rune’s non -unique currency symbols, such as $, ⧉, or general monetary symbols.
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Pay attention to the project, agreement and tools that are about to be launched

I first planned to write an article about “How to prepare for the Runes Agreement”.But there are already several similar posts on X to discuss the same agreement.

The key to know is that the Rune game has begun, and multiple pre -operation agreements have been launched. It is promised that after the Bitcoin halve block is started, the RUNE tokens are launched.

The hype began at the RSIC protocol, which mysteriously invested token to the RSIC NFT miner of the Ordinal OG wallet.

At that time, I said that “some major events are brewing in the BTCFI field”, but I don’t actually know how to develop.We now know that RSIC has started a competition to attract the attention of Rune speculators.

If you do not hold RSIC, I think it is not the right time to enter now: By holding RSIC and mining RSIC points, you can get RSIC RUNE tokens.Theoretically, RSIC should be traded at $ 0 at a minus block.

As a response to the RSIC team (they left 10% RSIC to themselves, and the airdrop standard are not transparent), Leonidas started the RuneStone airdrop to 112.4K OG wallet.By holding RuneStone, you will not only get one, but three Rune Memecoin tokens.

“Obtain one later this month, and get one later this year. When we become the world’s top Memecoin, get one” -leonidas

RuneStone’s current market value is US $ 549 million, the second largest preheating Runes series collectible for Rune Pups + PUPS.

However, the lower the value of the RSCI is half a time, the lower its value, so the real RSIC valuation is about 588 million US dollars based on the price of $ 0.028 in each RSIC RUNE price in the whale market.

Rune Pups ($ 80 million+ PUPS Memecoin ($ 421 billion) has a total transaction value of $ 501 million. Please remember that Rune Pups and PUPS tokens will migrate to Runes, of which 23% are distributed to Rune Pups, and77% are allocated to PUPS.

There are usually opportunities for arbitrage opportunities between Rune Pups NFT, UNISWAP, and bridges on Solana.

This is not financial advice, but are you willing to participate in these valuations?If my short -term expectations are correct, their valuation should be reduced shortly after release.

In any case, this is a speculative decision you should make.There are many other Runes protocols with multiple valuations of less than 100 million US dollars on Magic Eden.

However, I won’t sell.I entered this ecosystem early and was willing to hold it.In addition, these three major assets are becoming Xie Lin’s point of the Rune ecosystem, hoping that they can keep it and get more airdrops.

In the long run, the new agreement will appear to use the hype of the Runes protocol.Here are the protocols and tools you want to start.

Famous agreement

Luminex: Casting runes, you can split UTXO and cast multiple runes with the same wallet.Promoted by XVERSE wallet, so it may be good.
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Sovryn: Use your own side chain to exchange/borrowing runes.Start at half.Sovryn will start their DEX on the Bob L2, which is the same as I recommend links.
RunePro: Build the DEX and ETCHING protocols.No live broadcast.https://twitter.com/rune_pro
Rune Bitcoin: Provide etching and transfer services for runes, and also establishes a market and a DEX.
Runessance: Rune and Bitcoin borrowing agreement.
Liquidium: borrow order number and runes.Or earn Bitcoin income.Point system live broadcast.Liquidium airdrop has points.
Saturn: AMM/OrderBook Exchange of Bitcoin assets.There may be no liquidity during the Runes release.
Runigun: Telegram robot for casting, creating and managing runes.I can’t export my private key, so be careful.

But you may use Magic Eden and Unisat to trade Runes and OKX Web3 wallets (if you are a mobile user).Personally, I use Unisat, XVERSE and OKX wallet alternately.

In the future, I will write a blog post about the BTCFI ecosystem DAPPS.There are a lot of decompression content here, so be sure to subscribe.

Useful rune tool

SATSCREENER: Real Times Currency Puzzle of Rune and Bitcoin Ecosystem.Because the Coingecko/CMC of the Bitcoin ecosystem is bad, Satscreen is a place to track the tokens.
RuneSmarketCap: Find the Rune protocol according to source, market value, type, etc.
RuneALPHA: Rune browser, real -time data, etching (casting) protocols are combined into one.Very useful.
Rune terminal: Construct a scanner, a coin machine and a startup board.With its own serial number, Runi airdrop will be rewarded after halving.

BTCFI is still in the early stage.This is like the backflow of time. Back to the Ethereum DEFI before the birth of Uniswap 2019-220, there will be a lot of opportunities.