– Casey Rodarmor, the creator of Bitcoin Ordinals, is proposing a new Bitcoin-based fungible token protocol called Runes as an alternative to the BRC-20 token standard.
– The BRC-20 standard, launched by an anonymous developer named “Domo” in March, has reached a market cap of $1 billion within two months.
– Rodarmor argues that BRC-20 tokens spam Bitcoin with “junk” Unspent Transaction Outputs (UTXOs) and proposes Runes as a UTXO-based alternative.
– Runes is designed to have a smaller on-chain footprint and encourage responsible UTXO management, potentially reducing the negative impact of existing protocols.
– UTXOs represent the amount of cryptocurrency left in a wallet after a transaction and play a role in preventing double spending in the Bitcoin network.
– Rodarmor believes that a well-designed fungible token protocol for Bitcoin can generate transaction fee revenue, attract developers, and bring more users to the network.
– There are existing fungible token protocols on Bitcoin, such as Really Good for Bitcoin, Counterparty, and Omni Layer, but they also have their own issues.
– Rodarmor recently discussed the Runes idea on a Twitter Spaces session and Trevor Owens, co-host of The Ordinals Show, offered a $100,000 investment from the Bitcoin Frontier Fund to developers who can create a working Rune application.
– Cointelegraph reached out to Rodarmor for comment but did not receive an immediate response.