How to Etch, Mint, & Trade Runes

The Runes protocol provides an exciting new way to create and trade on-chain tokens on Bitcoin that benefit from the Bitcoin network’s security and decentralization. 

In this guide, you will learn how to etch, mint, and trade runes tokens so you can start participating in Bitcoin's new token economy.

Bitcoin Runes is a new token standard introduced by developer Casey Rodarmor that enables the creation of fungible assets on the Bitcoin blockchain. 

Rodarmor, who is also the creator of the Ordinals Protocol, wanted to design a simpler protocol that would be easier to use and wouldn’t clog the Bitcoin blockchain as BRC-20 tokens did. 

Runes are stored within this blockchain, leveraging Bitcoin's strong security and decentralization. Thus, they are a unique type of digital asset within both the Bitcoin economy and the broader crypto industry.

Etching and minting are two fundamental steps in creating runes tokens. 

Etching initiates the token creation process by specifying attributes such as the token's name, divisibility, symbol, and other immutable properties. This step marks the beginning of creating a rune.  

Once the rune is etched it is then ready for the minting process. Minting is the actual creation of the runes tokens based on the specifications set during the etching.

Now let’s look at the steps you need to take to create runes tokens. 

Etching Runes

To etch a rune, you need to create a runestone, which is a message in a Bitcoin transaction that describes the rune and its characteristics. 

Here’s how to etch your own rune:

1. Choose a platform: Some of the platforms include Luminex, UniSat, or Xverse. These platforms enable you to etch runes.
2. Define rune properties: Provide details for the rune you wish to create, including the name, divisibility, symbol to be used, and other specifications. 
3. Submit transaction: Pay the fees and complete your transaction. Its progress can be observed in Bitcoin's mempool, which is a space where BTC transactions are waiting to be confirmed.

Minting Runes

Once a rune is etched, you can set the supply of these tokens through minting. Here's the process:

1. Access minting functionality: Go to the same platform where you created the rune to find the options for minting.
2. Enter rune ID: Provide the rune ID, which consists of the etching transaction index and the block height when the rune was etched.
3. Specify amount: Enter the quantity of the rune you wish to mint.
4. Submit transaction: Verify the information and pay the necessary transaction fee to create the new tokens. Once again, the transaction can be monitored in Bitcoin’s mempool.

And that’s how easy it is to etch and mint runes!

Sovryn DEX 2.0, powered by the Bitcoin layer 2 network Built on Bitcoin (BOB), is a decentralized platform for trading runes. 

Here’s how you can buy and sell runes on Sovryn DEX:

How to Buy Runes

1. Set up wallet: Install MetaMask wallet’s Chrome or other browser extension.
2. Fund wallet: Fund your wallet with ETH.
3. Add network: To add the BOB network to your MetaMask wallet go to BOB Explorer and click on “Add BOB”.
4. Import tokens: Add the rune token (for example, POWA) to your token list on the MetaMask wallet.
5. Bridge ETH: Use the BOB bridge to move ETH from Ethereum to BOB and change the wallet network to BOB. 
6. Connect to Sovryn DEX: Head over to the Sovryn DEX in your browser, select the BOB network, and connect your MetaMask wallet.
7. Purchase runes: Go to the “Convert” tab, choose ETH and POWA (or other runes), input the specified amount, and proceed with the exchange.

How to Sell Runes

1. Top up your wallet with ETH: Ensure that your wallet has a sufficient amount of ETH to cover the transaction and bridging fees.
2. Bridge to BOB: If additional ETH is required to the BOB network, transfer it.
3. Connect wallet: Via the Sovryn website, select the BOB network and connect your MetaMask wallet to the Sovryn DEX.
4. Select tokens: In the “Convert” section, select the rune token you want to sell and the token you want to receive.
5. Complete transaction: Input the amount and proceed with the transaction. Allow some time for the new tokens to be displayed on your wallet account.

Benefits of Trading on Sovryn DEX

Trading runes on Sovryn DEX over other runes exchanges provides several benefits, including lower fees, more control over tokens, and enhanced security since the platform is decentralized.

Moreover, campaign incentives like Spice and Runes Points enhance the revenues derived from trading activities, thus making Sovryn DEX attractive for both new and seasoned traders.

Runes tokens extend the possibilities of the Bitcoin ecosystem, as they allow users to create and trade fungible tokens right on the Bitcoin blockchain. 

The etching and minting processes are relatively simple, allowing users to easily set their preferences for creating digital assets while leveraging Bitcoin’s security. These tokens can then be easily traded on decentralized platforms such as Sovryn DEX using the simple process described above.

Connect your wallet to the Sovyrn DEX to start trading runes tokens.