Bitcoin Ordinals creator Casey Rodarmor has proposed the creation of a new fungible token protocol called “Runes” as an alternative to existing protocols, including the BRC-20 standard.
In a blog post published on September 25, 2023, Rodarmor expressed concerns about current fungible token protocols like Good for Bitcoin, Counterparty, Omni Layer, and the relatively new BRC-20 standard.
New terrible idea just dropped: Runes.
A worse-is-better fungible token protocol for Bitcoin.https://t.co/TPVrUvWxm8
— Casey (@rodarmor) September 25, 2023
The BRC-20 standard was introduced by an anonymous developer in March 2023. Since then, the protocol standard has steadily increased in popularity among token developers. The memecoin, PEPE, is one of the popular tokens built with the standard.
Notably, BRC-20 enables the creation and transfer of fungible tokens on the Bitcoin network via Rodarmor’s Ordinal protocol.
However, Rodarmor argued that tokens created with this standard have the “undesirable consequence of UTXO proliferation.”
UTXOs (Unspent Transaction Output) represent the amount of unspent cryptocurrency in a wallet after a transaction. It plays a vital role in Bitcoin’s transparency and security by preventing double-spending.
Rodarmor acknowledged that many fungible tokens are associated with scams and memes but suggested that the right fungible token protocol could add value to the Bitcoin network while promoting responsible UTXO management. He proposed ‘Runes’ as a UTXO-based alternative to existing protocols.
Rodarmor envisioned “Runes” as a protocol with a focus on delivering a “good user experience” while efficiently managing UTXOs within the Bitcoin network. Although “Runes” remains in the conceptual stage, it has garnered significant interest from developers and the broader Bitcoin community.
Trevor Owens, co-host of The Ordinals Show, has proposed allocating $100,000 from the Bitcoin Frontier Fund to support developers interested in implementing a Rune application.
Open $100k investment offer in upcoming @BTCFrontierFund accelerator for first team who can get a working (not terrible) Rune indexer, issuance and/or transfer app, up live and running
Don’t make the tickers required to be unique, will be a shit show
DM me. Serious offer. pic.twitter.com/6W0IwlhB9x
— trevor.btc (@TO) September 26, 2023
Earlier, during a Twitter Spaces discussion with Owens, Rodarmor expressed uncertainty about pursuing the “Runes” concept further. Thus, Owen’s potential funding could help propel the proposal into actionable development.
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