The Bitcoin ecosystem, ignited by Ordinals last year, has rapidly become one of the hottest sectors in crypto. Within it, infrastructure development has primarily branched into two categories:
- Scalability Solutions and Cross-Chain Protocols: Examples include Bitcoin L2 solutions like Merlin, which attracted over $3 billion in TVL in under two months. Other major players like Stacks (STX) and Nervos Network (CKB) have seen their native tokens rise by 52% and 412% year-to-date, respectively.
- Asset Issuance Protocols: Standards like BRC-20, RGB++, Atomicals, and Stamps emerged from Ordinals, drawing significant capital. The BRC-20 token market cap now exceeds $2.3 billion, and assets like $Seal on RGB++ achieved a 300x surge shortly after launch.
All eyes are now on the upcoming Runes protocol, set to launch alongside the Bitcoin halving. Given the success of BRC-20, many believe Runes could be the next major opportunity.
What Makes Runes Different?
Proposed by Ordinals creator Casey Rodarmor in September 2023, Runes is designed to address issues like network congestion and inefficiencies caused by BRC-20. It is a UTXO-based, lightweight protocol for issuing assets on Bitcoin.
Unlike BRC-20, which stores data in the witness part of a transaction, Runes uses the OP_RETURN function to embed data directly into Bitcoin's UTXOs. This separation of token data from transaction data aims to make token management simpler and more transparent.
Pre-Runes projects have already gained traction, with a collective market cap surpassing $1.2 billion. Runestone, for example, has become the second-largest NFT by market cap.
Despite the excitement, it remains to be seen whether Runes will deliver significant improvements in user experience from day one. Technological innovation and market momentum often go hand in hand—continued development and adoption will be key to its long-term success.
How to Participate in the Runes Ecosystem
There are several ways to get involved with Runes, depending on your goals and technical comfort level.
1. Direct Minting
The most hands-on approach is to mint tokens directly once the protocol goes live. Casey Rodarmor’s team will deploy the first official Rune (known as Rune #0) immediately after launch. This will be a fair mint, open to anyone.
To participate, you’ll need to run your own Bitcoin node and prepare your wallet by splitting UTXOs in advance—a process we’ll explain later.
2. Investing in Pre-Runes Projects
Many pre-Runes projects are already available on marketplaces like Magic Eden. Some BRC-20 tokens, such as $PUPS and $AINN, are also considered proxies for Runes momentum. Buying these early could capture upside from both pre-launch hype and potential airdrops after Runes goes live.
Another option is to mint or buy Runes-themed tokens on unofficial platforms like Rune Alpha. These are built on early iterations of the Runes standard and are expected to migrate to the mainnet after launch.
3. Secondary Market Trading
Once Runes tokens are live, you can trade them on supporting exchanges. Major platforms that have announced support include Magic Eden, OKX, RunePro, and Saturn. 👉 Explore trading strategies and platforms
4. Supporting Runes Ecosystem Projects
Some projects are building infrastructure or complementary services for Runes. For example, Merlin Chain’s UniCross platform introduced RUFI, a concept allowing users to swap BRC-20 tokens for Runes at a 1:1 ratio. A portion of RUFI was airdropped to early users, with the remainder available via fair mint.
Setting Up Your Wallet and Splitting UTXOs
Regardless of how you plan to participate, you’ll need a Bitcoin wallet compatible with Taproot addresses. Popular options include UniSat, OKX (mobile-friendly), and Xverse (desktop-friendly). Below, we focus on setting up an OKX Web3 wallet and preparing your UTXOs.
Step 1: Create a Wallet
Visit the OKX Web3 wallet page and click “Create Wallet.” During setup, you must select “Recovery Phrase” (mnemonic) as your method.
Why? Because the “No Private Key Wallet” option does not support Taproot addresses, which are essential for interacting with most Bitcoin ecosystem projects. Always use Taproot addresses for Bitcoin transactions in this context.
Note: OKX supports four types of Bitcoin addresses, all interoperable, but Taproot is recommended for optimal compatibility.
Step 2: Split Your UTXOs
UTXO splitting is necessary to avoid errors during minting or transferring Runes tokens. You can use tools like Luminex or WizzCash to streamline the process.
- Connect your wallet to the platform.
- Specify the amount of Bitcoin per UTXO and the number of UTXOs you want to create. (Refer to community guidelines for ideal ratios.)
- Choose a network fee level.
- Confirm the transaction and sign with your wallet.
Splitting UTXOs in advance ensures smoother interactions with the Runes protocol and minimizes transaction failures.
Frequently Asked Questions
What is the Runes protocol?
Runes is a new token standard on Bitcoin designed to be more efficient and user-friendly than BRC-20. It uses Bitcoin’s UTXO model and OP_RETURN function to manage assets without clogging the network.
When will Runes launch?
Runes is scheduled to go live at the same time as the Bitcoin halving, which occurs approximately every four years. The next halving is expected in April 2024.
Do I need to split UTXOs to use Runes?
Yes, splitting UTXOs is recommended to prevent errors during minting or transfers. Tools like Luminex and WizzCash can automate the process.
Which wallets support Runes?
Wallets like UniSat, OKX, and Xverse are compatible with Taproot addresses and will support Runes at launch. Always ensure you’re using the latest version of your wallet.
Can I trade Runes on exchanges?
Yes, several exchanges—including Magic Eden and OKX—plan to support Runes trading shortly after launch. 👉 Check real-time exchange listings
What are Pre-Runes projects?
Pre-Runes projects are early tokens or NFTs launched in anticipation of the Runes protocol. They may be airdropped or converted to official Runes tokens after the mainnet launch.