Bitcoin Runes are fungible tokens that live directly on the Bitcoin blockchain. Created by Casey Rodarmor (the same developer behind Bitcoin Ordinals), the Runes protocol launched at Bitcoin's fourth halving in April 2024 at block 840,000. It provides a clean, efficient way to create and transfer fungible tokens using Bitcoin's native UTXO (Unspent Transaction Output) model.
Before Runes, the main way to create fungible tokens on Bitcoin was BRC-20, which used Ordinals inscriptions to store token data in witness space. While innovative, BRC-20 had significant problems: it created massive amounts of "junk" UTXOs, bloated the UTXO set, and required off-chain indexers to track balances. The Bitcoin network was clogged with dust outputs that served no real purpose.
Runes solved this by encoding all token data directly into Bitcoin transaction outputs using a protocol message stored in an OP_RETURN output. This means Rune transfers are real Bitcoin transactions that respect UTXO accounting. No junk UTXOs. No bloated chain state. Just clean, native Bitcoin transactions with token data attached.
The name "Runes" was chosen deliberately. In the same way that ancient runes were symbols carved into stone to carry meaning, Bitcoin Runes are symbols etched into Bitcoin transactions to carry token information. The naming convention uses a distinctive format with a bullet separator -- like SPUNK•BET -- making them instantly recognizable.
Understanding Runes requires understanding Bitcoin's UTXO model. Every Bitcoin transaction consumes existing outputs (UTXOs) and creates new ones. Your "balance" is the sum of all UTXOs your wallet controls. When you send Bitcoin, you spend one or more UTXOs and create new ones for the recipient and for your change.
Runes piggyback on this existing system. A Rune balance is attached to a specific UTXO. When that UTXO is spent in a transaction, the Rune protocol message (encoded in an OP_RETURN output) specifies how the Rune balance should be distributed among the new outputs.
Every Runes transaction includes an OP_RETURN output that starts with a specific tag identifying it as a Runes protocol message. This output contains encoded instructions called "edicts" that describe how rune balances should move. The structure looks like this:
OP_RETURN OP_13 [encoded data]
The OP_13 magic number identifies this as a Runes protocol message. The encoded data contains a series of edicts that specify: which rune to transfer, which output receives the runes, and how many units to transfer.
Each edict in the protocol message specifies three things: a rune ID (identifying which rune), an output index (which transaction output receives the runes), and an amount (how many units to transfer). Multiple edicts can be included in a single transaction, allowing complex multi-rune transfers in one operation.
Every rune has a unique ID based on the block height and transaction index where it was first etched (created). For example, a rune etched in the 5th transaction of block 850,000 would have the ID 850000:5. This provides a simple, deterministic identification system without requiring a global registry.
Each rune has a configurable divisibility (0-38 decimal places) set at etching time. A rune with divisibility 0 can only exist in whole units. A rune with divisibility 2 can be split to hundredths (like cents). This is defined once and cannot be changed.
Both Runes and BRC-20 create fungible tokens on Bitcoin, but they work very differently under the hood. Understanding these differences is essential for anyone involved in the Bitcoin token ecosystem.
| Feature | Bitcoin Runes | BRC-20 |
|---|---|---|
| Data Storage | OP_RETURN outputs | Ordinals inscriptions (witness data) |
| UTXO Model | Native UTXO-based | Creates junk UTXOs |
| Chain Bloat | Minimal -- OP_RETURN is prunable | Significant -- inscriptions stored permanently |
| Indexer Required | Yes, but simpler | Yes, complex off-chain parsing |
| Transfer Efficiency | Single transaction | Requires inscription per transfer |
| Divisibility | Configurable (0-38 decimals) | Fixed 18 decimals |
| Supply Cap | Optional -- can be open or capped | Always capped at deployment |
| Minting | Open minting with configurable terms | First-come FCFS minting |
| Transaction Fee | Lower (smaller data footprint) | Higher (inscription overhead) |
| Launch Date | April 2024 (block 840,000) | March 2023 |
The most significant advantage of Runes is UTXO hygiene. BRC-20 operations create tiny, economically useless UTXOs that permanently expand Bitcoin's UTXO set. This set must be stored in memory by every full node, so bloating it degrades Bitcoin's performance for everyone. Runes avoid this entirely by using OP_RETURN, which full nodes can safely prune.
In practical terms, Rune transfers are cheaper and faster. A single Bitcoin transaction can move multiple different runes to multiple recipients. BRC-20 requires separate inscription transactions for each operation, increasing costs and confirmation times.
Despite Runes' technical superiority, BRC-20 tokens haven't disappeared. They had a year head start, built significant liquidity, and some early BRC-20 tokens like ORDI and SATS have established market positions. The ecosystem is gradually migrating, but network effects keep BRC-20 relevant. Many traders hold both.
"Etching" is the Runes term for deploying a new token. When you etch a rune, you define its permanent characteristics in a special transaction. Once etched, these parameters cannot be changed.
Name: The rune's display name using the bullet separator format (e.g., SPUNK•BET). Names must be unique and follow specific length rules that relax over time -- shorter names become available as more blocks are mined.
Symbol: A single Unicode character displayed with amounts (like $ or a custom emoji).
Divisibility: Decimal places (0-38). Defaults to 0.
Premine: Tokens allocated to the etcher at creation.
Open Mint Terms: Rules for public minting -- amount per mint, start/end block, total cap.
Turbo: A flag opting into future protocol upgrades.
The name length restriction is an elegant anti-squatting mechanism. At launch, only names with 13+ characters were available. Over roughly four years, shorter names progressively unlock. Single-character names will be the last to become available. This prevents anyone from squatting all the good short names early.
If a rune was etched with open mint terms, anyone can mint new units by creating a transaction with the appropriate Runes protocol message. Here is a step-by-step walkthrough.
Browse rune marketplaces like Magic Eden, Luminex, or UniSat to find runes with open minting. Look at the mint terms: how many tokens per mint, how many mints remain, and when minting ends.
Use a wallet that supports Runes: Xverse, Leather (formerly Hiro), UniSat, or Magic Eden Wallet. Make sure you have enough BTC to cover the transaction fee (typically 2,000-20,000 sats depending on network congestion).
Use a minting interface (most rune marketplaces offer one) or a command-line tool like ord. The interface constructs a Bitcoin transaction with the correct OP_RETURN data. You sign and broadcast it like any normal Bitcoin transaction.
Your minted runes appear in your wallet after the transaction is confirmed (usually 1-3 blocks, or 10-30 minutes). The rune indexer processes the OP_RETURN data and credits your address with the minted amount.
Minting costs only a standard Bitcoin transaction fee. There is no additional protocol fee for minting runes. During low-congestion periods, a mint can cost under 1,000 sats (a few cents).
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Claim Your Free SPUNKOnce you hold runes, you can trade them on several platforms. The Runes trading ecosystem has matured significantly since launch.
Magic Eden -- The largest Runes marketplace by volume. Supports limit orders, market orders, and collection offers. Integrated wallet makes onboarding easy. Lists hundreds of runes with real-time pricing.
UniSat -- One of the original Bitcoin token platforms. Strong community, good liquidity for major runes. Also supports BRC-20, so you can trade both token standards in one place.
OKX Web3 -- OKX's decentralized marketplace supports Runes trading directly from their wallet. Benefits from OKX's large user base and deep liquidity.
Luminex -- A dedicated Runes platform focused on minting and trading. Offers batch minting tools and detailed analytics on rune supply and holder distribution.
Rune trades use Partially Signed Bitcoin Transactions (PSBTs). The seller creates a PSBT offering their runes at a specific price. The buyer completes the PSBT by adding their BTC payment. Both sides sign, and the completed transaction is broadcast. This is trustless -- neither party can cheat because the transaction is atomic: either both sides execute, or neither does.
Some platforms also support order books with limit orders, allowing you to place bids below market price and wait for a fill. This is more capital-efficient than instant swaps for larger trades.
| Wallet | Platform | Rune Support | Best For |
|---|---|---|---|
| Xverse | Mobile + Extension | Full (view, send, receive) | Best all-around Bitcoin wallet |
| Leather | Extension | Full | Stacks + Bitcoin ecosystem users |
| UniSat | Extension | Full + marketplace | Active traders (BRC-20 + Runes) |
| Magic Eden Wallet | Extension | Full + marketplace | NFT collectors who also trade runes |
| OKX Web3 | Extension + Mobile | Full | Multi-chain users |
All of these wallets use Taproot (P2TR) addresses by default for Runes, which start with bc1p. This is important because Runes are designed to work with Taproot outputs. If you send runes to a legacy or SegWit address, you may lose them permanently.
Bitcoin Runes have evolved beyond speculative trading into genuine utility tokens. Here are the most significant use cases in 2026.
Runes are ideal for gaming. They're fungible (every token is identical, perfect for in-game currency), they live on Bitcoin (the most secure and decentralized blockchain), and they're cheap to transfer. Platforms like SPUNK BET use runes as native gaming tokens, allowing players to bet, earn, and trade without leaving the Bitcoin ecosystem.
Bitcoin communities use runes as membership tokens, tipping currencies, and governance tools. Because runes live on Bitcoin, they inherit Bitcoin's censorship resistance -- no platform can freeze or seize your community tokens.
Businesses use runes for loyalty programs. Unlike traditional points systems (which are centralized and can be devalued at any time), rune-based loyalty tokens are transparent, transferable, and verifiable on-chain.
The emerging Bitcoin DeFi ecosystem uses runes as collateral, liquidity pool tokens, and trading pairs. Atomic swaps between different runes (and between runes and BTC) are possible using PSBTs, enabling decentralized exchanges without smart contracts.
SPUNK•BET is a Bitcoin rune purpose-built for crypto gaming. It demonstrates how runes can power an entire gaming ecosystem on Bitcoin.
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Start Playing NowThe Runes protocol is still young, but its trajectory is clear. Several developments are shaping the future of runes in 2026 and beyond.
Casey Rodarmor has indicated that runes with the "turbo" flag enabled will automatically benefit from future protocol upgrades. These could include more efficient encoding, new edict types, and improved indexer performance. The protocol is designed to evolve without breaking existing runes.
As more blocks are mined, shorter rune names continue to become available. By 2026, names as short as 3-4 characters are accessible. This creates ongoing interest as desirable short names unlock and get etched.
Runes' clean UTXO model makes them more palatable to institutional players than BRC-20. Compliance teams prefer tokens that don't create chain bloat or rely on complex off-chain indexing. As Bitcoin adoption grows among institutions, runes are positioned to be the preferred fungible token standard.
More gaming platforms, social apps, and financial tools are integrating Runes support. The standard is becoming as fundamental to Bitcoin's token layer as ERC-20 is to Ethereum.
No. They were created by the same developer (Casey Rodarmor), but they serve different purposes. Ordinals are for non-fungible inscriptions (unique digital artifacts, similar to NFTs). Runes are for fungible tokens (interchangeable units, like coins or game tokens). They use different technical mechanisms -- Ordinals use inscription data in witness space, while Runes use OP_RETURN outputs.
You need a wallet that understands the Runes protocol. Standard Bitcoin wallets will show the BTC in your UTXOs but won't recognize the rune balances attached to them. Use Xverse, Leather, UniSat, or Magic Eden Wallet. Always use a Taproot (bc1p) address for receiving runes.
Yes. If you send runes to an address controlled by a wallet that doesn't support runes, the rune balance may become inaccessible. The runes still exist on-chain, but you'd need the private key and a rune-aware wallet to recover them. If you send them to an address you don't control at all, they're gone permanently.
Only the Bitcoin transaction fee. There is no protocol-level minting fee. During low-congestion periods, this can be under 1,000 sats (a few cents). During high congestion, fees can spike to several dollars. Always check mempool conditions before minting.
Unlikely in the short term. BRC-20 has established liquidity and community. Some major tokens like ORDI are deeply embedded in the ecosystem. However, most new fungible token projects launch on Runes due to its technical advantages. The long-term trend favors Runes, but BRC-20 will likely persist as a legacy standard.
Yes. SPUNK BET at spunk.bet gives away 10,000 free SPUNK rune tokens every 24 hours through their daily faucet. No purchase, no deposit, no KYC. Just claim and play. You can also earn runes through community airdrops, social tasks, and open minting events with low fees.
Runes inherit Bitcoin's security model -- the most battle-tested and decentralized blockchain in existence. The rune protocol itself is simple and well-audited. The main risks are user-side: losing your seed phrase, sending to wrong addresses, or interacting with malicious PSBTs. Use a reputable wallet and verify all transactions before signing.