The homogeneous token protocol Runes was launched yesterday, triggering a frenzy of rune token minting among users. This has led to a significant increase in Bitcoin transaction fees. Among the various rune projects, SATOSHI•NAKAMOTO, named after the creator of Bitcoin, has been the most popular, with over 20,000 wallets holding the tokens and a daily increase of 600%.
On April 20th at 8:09 am Taiwan time, when the block height reached 840,000, the highly anticipated homogeneous token protocol Runes was also launched, immediately causing a market frenzy as users rushed to mint rune tokens, resulting in a significant increase in Bitcoin transaction fees.
According to mempool data, the transaction fees on the Bitcoin network reached over 2,000 Sat for high priority transactions, equivalent to 2232 Sat/byte or $199.43. Although the fees have since dropped, they are still higher than normal. The fees for non-priority transactions are 18 Sat/byte or $1.64, for low priority transactions are 280 Sat/byte or $25.5, for medium priority transactions are 338 Sat/byte or $30.79, and for high priority transactions are 400 Sat/byte or $36.44.
Runes Protocol Frenzy
Runes is a homogeneous token protocol issued on Bitcoin, created by Casey Rodarmor, the founder of Ordinals. The protocol aims to address the inefficiencies of existing homogeneous token protocols like BRC-20. BRC-20 gained popularity shortly after its launch on Ordinals, but had some drawbacks, including low scalability, slow transaction speed, and high transaction fees.
Runes introduces a UTXO-based homogeneous token protocol that provides a simpler and more efficient system compared to standards like BRC-20. It simplifies the process, making applications such as meme coins, badges, collectibles, and other custom assets possible without causing blockchain congestion.
To balance the issuance pace of Rune tokens and prevent the early occupation of short names, the Runes protocol requires a minimum token name length of 13 letters for the first four months after its launch. Afterward, the minimum name length will decrease by one letter every four months until the next halving event, at which point tokens with only a single character can be created.
With the launch of the Runes protocol, a frenzy of rune token minting has emerged. According to Runealpha data, numerous Runes projects have already been fully minted. Among them, the project named SATOSHI•NAKAMOTO, after the creator of Bitcoin, has been the most popular, with over 20,000 wallets holding the tokens and a daily increase of 600%.
However, the Rune protocol has received mixed opinions from the cryptocurrency community. Some users praise the protocol for bringing a new asset class to Bitcoin and benefiting miners. Others criticize the high transaction fees, which they find unappealing and tarnishing to Bitcoin’s image.
Previously, Casey Rodarmor made a solemn vow that if the market capitalization of the Rune ecosystem’s tokens did not reach $1 billion within the first month of Rune’s launch, he would commit seppuku.
Related articles:
– Understanding the Runes Protocol, a new token standard on Bitcoin
– Runes speculation drives a surge in trading activity, with Bitcoin transaction fees tripling and surpassing Ethereum.
– Countdown to the launch of the Rune protocol on Bitcoin: How to prepare wallets, UTXOs, and save money tips?