The creator of Bitcoin Ordinals, Casey Rodarmor, has proposed an alternative Bitcoin-based fungible token protocol called Runes, aiming to address the issues associated with BRC-20 tokens.
BRC-20 tokens, introduced by the anonymous developer “Domo” in March, have quickly gained popularity, with a market cap reaching $1 billion in just two months. However, according to Rodarmor, these tokens create a problem by flooding the Bitcoin network with “junk” unspent transaction outputs (UTXOs).
In a blog post on September 25, Rodarmor explained that Runes, a UTXO-based protocol, could be a more efficient and sustainable alternative to BRC-20 tokens. UTXO-based protocols, he argued, align better with Bitcoin’s architecture and promote responsible UTXO management.
By proposing Runes, Rodarmor aims to reduce the negative impact of excessive UTXO proliferation while maintaining the benefits of fungible tokens on the Bitcoin network. He suggested that a well-designed fungible token protocol could bring added value to Bitcoin by generating transaction fee revenue, attracting developers, and increasing user adoption.
During a Twitter Spaces session with Trevor Owens, co-host of The Ordinals Show, Rodarmor discussed his Runes concept and expressed uncertainty about its future development. Owens even considered offering a $100,000 grant from the Bitcoin Frontier Fund to developers willing to work on a Rune application, further advancing Rodarmor’s proposal.