Runes Protocol ecosystem before Bitcoin Halving

After Ordinals, will Runes Protocol continue to be the next wave in the Bitcoin ecosystem?

“Runes is built for degens and memecoins. It is a competitor to Taproot Assets and RGB,” shared Casey Rodarmor, founder of Bitcoin Ordinals and Runes Protocol.

Overview of Runes Protocol

Runes Protocol provides a fungible token issuance standard on Bitcoin like BRC-20, but instead of operating on the Ordinals protocol, Runes Protocol uses the UTXO model.

Runes are assets that are included in the Bitcoin blockchain through a process called etching (Etching - is the technology to create Runes, while Inscription is the technology to create BRC-20 tokens). Each Runes is unique and has specific properties such as name, symbol, divisibility, and once set cannot be changed.

Runes Protocol will officially launch on block 840,000, the same block that triggers the Bitcoin Halving event on the Bitcoin blockchain. The first 10 Runes released (from Runes #0 to Runes #9) were hard-coded into the Runes Protocol.

(Note: Runes in Runes Protocol are similar to Tokens in other protocols.)

Runes Protocol attracts attention because it was created by Ordinal developer Casey Rodarmor. Genesis Rune (Original Rune) is called UNCOMMON•GOODS, providing free minting process starting from the Halving event in April 2024.

This minting will take place continuously for 4 years, 1 mint per transaction, maximum about 7,751 mints per block.

This could be a major catalyst for Bitcoin going forward, increasing Bitcoin's demand for blockspace.

As mentioned above, Runes Protocol has only officially operated since the time of Bitcoin halving, so the protocols claiming to operate on Runes are actually only in the testnet stage, spanning many fields such as NFT, Launchpad, Lending…

Overview of the Runes Protocol ecosystem

Runes Protocol ecosystem

Pre-Runes

Since no Runes have been officially released yet, projects that airdrop Runes to Ordinal holders or allow minting Runes after the Halving are listed as Pre-Runes.

Runestone

Runestone is an Ordinal project, and is also a memecoin (due to its lack of utility and development roadmap). The project was created by Leonidas, an anonymous character on X.

Each wallet address containing 3 or more inscriptions before January 20, 2024 will receive a Runestone airdrop. This Ordinal will be converted into Runes when the Bitcoin Halving event occurs.

Recently, the project announced an airdrop of three memecoins to Runestone holders. The first Memecoin themed about dogs will be airdropped at the end of April 2024. The next two memecoins will be airdropped later this year and when the project tops the ecosystem.

Besides the airdrop, the project also attracts users through the release of an AR application that allows them to see 3D Runestone images in real life, thereby stimulating users to share about Runestone with friends or on social networks. festival.

The Rune Guardians

The Rune Guardians is a project to release a 10,000 Ordinal collection called The Rune Guardians. Those who hold them will receive an airdrop of Mint Runes when the Runes Protocol officially launches. The Rune Guardians can now be traded on Magic Eden.

RSIC

RSIC is a collection of 21,000 Ordinals. In the near future, the project will likely launch the RUNE token. RSIC Ordinals has been airdropped to wallets that own certain Ordinal Inscriptions such as Ordinal Maxi Biz.

Marketplace/DEX

Marketplace projects that support Ordinals trading are starting to support Runes trading.

Magic Eden

Magic Eden is one of the leading NFT exchanges on the Solana ecosystem. Recently, this exchange started supporting trading of assets related to the Bitcoin and Runes Protocol ecosystems.

Projects promise to airdrop Runes or give users mint Runes when the Runes Protocol officially launches if they hold the project's assets listed on the "Pre-Runes" section of Magic Eden.

Besides Magic Eden, some other projects in the same field are OKX Marketplace, BitX, UniSat, Gamma, Ordinals Wallet and Ordinal Market.

Launchpad

Launchpad projects in the Runes Protocol ecosystem support users to mint Ordinals and receive airdrops if they hold these Ordinals.

BitX Runes DEX

BitX is one of the first launchpad projects on the Bitcoin blockchain. The project allows users to swap BRC-20 tokens and provides tools to track the prices of BRC-20 tokens. Currently BitX is developing DEX on Runes Protocol.

BitX is running an airdrop campaign for BitX Pre Runes PG Pass holders. Users can mint BitX OG Pass on BitX Launchpad and pay in sats.

Some other launchpad projects in the Runes Protocol ecosystem are:

·      Runespad: The project launched in February 2023, allowing people to track Runes transactions, develop new Runes projects, create new Runes and learn everything about Runes.
·      Rune Bitcoin: Project launched in November 2023 with features similar to Runespad.
·      Meta Runes: Project starts in August 2023, supports mint Runes users, opens presale, Launchpad with Runes.

Data / Tooling / DeFi

Rune Alpha

Rune Alpha provides a search engine to look up transactions and Runes that have been and are currently active on the Bitcoin network. In it, there is information such as supply, transaction volume, capitalization, number of holders, total number of transactions, creation date... Users can also send Runes to another wallet, organize an auction...

Rune Alpha provides a comprehensive view of the Runes Protocol ecosystem

Liquidium

Liquidium allows users to borrow against Ordinals and receive interest in Bitcoin. Some prominent Ordinals being supported by Liquidium are NodeMonkes, Runestone, Bitcoin Pippets... In the near future, users can also borrow mortgages using Runes and BRC-20 tokens.

Runessance

Runessance allows users to borrow Bitcoin, collateralize it with UTXO tokens, or lend Bitcoin to receive Bitcoin native yield. Currently the project is only in the testnet phase and only those who are whitelisted can experience the project.

Some other projects working in the field of Data and DeFi in the Runes Protocol ecosystem are:

Best in Slot: Project synthesizing information about Bitcoin Ordinals, BR20 similar to CoinMarketCap, CoinGecko.
Runes Legacy: Project that synthesizes the latest projects and information about the Runes system, similar to DeFiLlama.
Rune Mine: A project that helps manage assets, multi-signature wallets, bridges to transfer assets from other ecosystems to Runes, and aggregates market data on Runes.

UniSat

UniSat is an electronic wallet and exchange project that allows users to buy, sell, and trade Ordinals and Atomicals, including BRC-20 tokens and ARC-20 tokens.

One of the first memecoins on the Bitcoin blockchain is PUPS which is being traded on UniSat. Owning PUPS increases your chances of receiving airdrops from Rune Puppet.

Xverse

Xverse is an electronic wallet project that allows users to mint Runes when the Runes Protocol officially comes into operation.

In addition, Xverse also allows users to trade and store assets such as Ordinal, rare Sats, STX-20 tokens... and allows users to mint BRC-02 tokens, STX-20 tokens...

Other projects in the wallet segment of the Runes Protocol ecosystem are Ordinals Wallet, Leather Wallet...

Conclusion

The success of Ordinals and BRC-20 makes the market have a very positive view of Runes Protocol. Most projects in the Runes Protocol ecosystem make promises to help users own Runes when Runes Protocol officially launches if they hold Ordinals/assets issued by the project. Airdrop is the main method to attract users of these projects.

However, Runes has not yet officially launched and does not represent a specific valuable product. Projects in the Runes Protocol ecosystem are only in the testnet phase, many projects are developed easily, without commitments or specific development roadmaps. The number of e-wallets supporting these projects is also very limited, including Xverse, Unisat, Leather, Magic Eden, OKX... Therefore, participating in and using these projects is very risky.