Rune etching is the process of creating new fungible tokens directly on the Bitcoin blockchain using the Runes protocol. It allows users to embed token details such as name, symbol, supply, and other characteristics in a Bitcoin transaction through use of the OP_RETURN output. By etching Runes, you essentially define the rules and properties of your token, similar to creating a new cryptocurrency on Bitcoin.
Etching Process Overview
During the etching process, creators can choose to premine - which allows them to reserve a specific portion of the total supply for themselves before public minting begins.
Once a Rune is etched, it can be minted in two ways:
- Open Minting: Anyone can mint new Runes after the etching process by initiating mint transactions.
- Closed Minting: New tokens can only be minted under specific conditions, such as within a defined time frame, after which minting will stop.
How to Etch Your Own Runes with Xverse
Xverse provides an easy-to-use platform to etch your own Runes directly on the Bitcoin blockchain. Follow these steps bellow to etch your Runes using Xverse.
Step 1: Visit the Xverse Rune Etching Page
Go to Xverse Runes. Scroll down until you see the “Etch your own rune” option.
Step 2: Fill Your Rune Details
Fill in the details of the Rune you wish to etch, including:
- Rune Name: The name of your token.
- Symbol: The short ticker symbol for your token.
- Divisibility: Choose how many decimal places your Rune can have (set to 0 by default).
Step 3: Enable Minting
If you want your Rune to be mintable, toggle the Enable Minting option. You can define additional parameters such as total supply and minting conditions here.
Things to Keep in Mind
- If you disable minting, your etched Rune will be created with a supply of 0.
- The total supply of your Rune is calculated as: Total Supply = Premine + (Mint Amount * Mint Cap).
- When enabling minting, you have two options:
- Reserve the total supply for yourself: Enable minting and set the premine amount equal to the total supply. This ensures that no one else can mint your Rune.
- Allow others to mint your Rune: Set a fixed premine and define the mint amount and mint cap. This lets other users mint additional Runes according to the rules you set.
These options give you flexibility in how your Rune is distributed and controlled.
Step 4: Custom Fee Rate and Submit
Choose either a default fee rate or a custom one to complete the transaction, then click Submit to etch your Rune. Please note that higher fees generally result in faster processing times on the Bitcoin network.
Review your transaction carefully and Confirm to complete etching process.
Rune etching with Xverse allows you to create custom fungible tokens with ease. By following this process, you can etch Runes and expand the Bitcoin ecosystem with your own custom tokens!