Drastic Decline in Rune Etchings
The number of new Runes etched on Bitcoin daily has seen a significant decrease, dropping below 250 for the past six days. According to a Dune Analytics dashboard by RUNES.IS, only 157 Runes were etched on Monday, marking a 99% decrease from the peak in late April.
Analysis of Runes Protocol and Its Critics
Runes, a token standard introduced at the fourth Bitcoin halving block, enables users to inscribe artwork, images, audio, and videos onto the Bitcoin network. Initially providing revenue for miners, the decline in Rune etchings is evident, with only 157 Runes on May 13 compared to hundreds of thousands in late April.
In his critique of the Runes protocol, Bitcoin core developer Luke Dashjr pointed out design flaws within the Bitcoin blockchain network. He highlighted the contrasting nature of Ordinal Inscriptions and the Runes protocol, suggesting methods to filter out protocol-related transactions.
Despite opposition, Runes transactions remain popular, occupying a significant share of Bitcoin transactions. Introducing efficiency in blockspace allocation, Runes offer compatibility with Bitcoin’s UTXO model, distinguishing themselves from BRC-20 tokens.
“Runes are compatible with Bitcoin’s unspent transaction output (UTXO) model, allowing UTXOs to hold balances of arbitrary fungible tokens like Runes.” – Binance Research
