Runes Protocol Launches on Bitcoin, Sending Fees Soaring as Users Rush to Mint Tokens

Rodamor is recognized for introducing Ordinals, a system enabling users to record data on the tiniest Bitcoin units, or satoshis, generating valuable assets within the Bitcoin network. The introduction of Ordinals has significantly contributed to revitalizing Bitcoin’s developer community.

In simpler terms, Runes and Ordinals share a commonality as they enable users to create and inscribe tokens on the blockchain. However, a significant distinction lies in their nature. Ordinals represent unique, non-interchangeable items, much like collectibles or digital art, while Runes operate more like popular meme coins that have been gaining traction in the crypto world.

The initial Runes project to be minted was Rodamor’s UNCOMMON•GOODS project, which was publicly announced before the upcoming halving event. Many other projects also disclosed their intentions to leave a mark on these precious satoshis in advance.

See also: The Bitcoin Halving Is Here, and With It a Giant Surge in Transaction Fees

In advance, it’s uncertain which other Runes projects will have a chance at using these limited satoshis. Currently, there are well over 100 Runes projects being minted and searching for potential buyers.

A Runes project’s viability can be assessed using various subjective factors. One such factor is being an early listing, like DOG•GO•TO•THE•MOON, which holds the title of “Rune Number 3.” Another factor is the perceived quality of the project’s ticker by potential buyers.

Before the halving block was mined in the X Space managed by Leonidas, who is known for his extensive collection of Ordinals, potential buyers engaged in lively discussions about which Runes to create and even exchanged ticker symbols.

Some of the mentioned projects included Taproot Wizards, founded by influential Bitcoin figures Eric Wall and Udi Wertheimer through the Ordinals initiative. Additionally, a project called Satoshi Nakamoto existed, which as of the press report, boasted over 5,000 holders who produced approximately 19,000 tokens in its name, honoring Bitcoin’s creator.

Which projects will actually prove to have long term value is hard to judge.

“One trader admitted, ‘I haven’t come across any good memes that resonate with me.’ In simpler terms, ‘I still haven’t created anything new.'”

See also: Runes DEX Secures $2 Million in Seed Investment to Pioneer AMM on Bitcoin

“Currently, I’m working on getting a grasp of the big picture.” That person added, “These initiatives remind me of the earliest forms of Runic scripts. Do you believe they will hold the greatest worth in the future?”

“I think it depends what happens with them,” someone responded.

What percentage of the tokens were set aside beforehand by the project creators, ready to be sold on the market at a later time? Before the halving event, Leonidas advised that projects pre-mining over 10% of their token supply could be considered “greedy.”

One trader expressed his belief that the pre-mines will be the successful ones. He explained, “Given the challenge of creating a memorable meme with just 13 characters, I believe this will be the case.” This refers to the naming system implemented by Rodamor in Runes, designed to prevent users from hoarding ticker symbols.

Over time, Runes ticker symbols may become shorter. In the next three years, we might see Runes projects using symbols as short as three letters.

Based on Ordiscan’s information, a forward-thinking developer has reserved certain ticker symbols for future use. Among them are “ZZZZ” (set to be the first four-letter Rune to be minted in two years), “ZZ” and “Z” (the first two-letter and one-letter Runes expected to be minted in three years), and “A” (anticipated to be the last single character Rune to be minted in four years).

In other words, with something so new, it’s hard to determine what to value.

Amidst the confusion and uncertainty, Leonidas spoke to his crowd, expressing his excitement to be in their company: “I’d like to pause for a moment and share how great it is to be here with all of you. We’ve just embarked on a new procedure around thirty minutes ago. Brace yourselves, as I believe things are going to get quite hectic.”