Developers share the “Rune Crafting Techniques” of Ordinals – Five crucial points to remember

Developers share the "Rune Crafting Techniques" of Ordinals - Five crucial points to remember

Developers share the "Rune Crafting Techniques" of Ordinals - Five crucial points to remember

Less than 10 hours left until the Bitcoin halving, which also means that the long-awaited Runes Protocol will soon go live on the Bitcoin network. In response to this, Ordinals developer Leonidas shared five tips today for minting Runes, in order to prevent investors or those new to the Bitcoin ecosystem from making mistakes.

Contents:
Toggle
Minting coins is like an auction, the highest bidder wins
Choose the right time to mint
Pay attention to the minting mechanism
Be aware of the pre-minting ratio
Estimate the potential market value

Bitcoin block times are longer, so a lot can happen between two blocks. If a Rune is about to be minted, you need to ensure that the transaction fee you pay is much higher than others, in order to ensure that your transaction is prioritized for processing. If your transaction is not processed, you will not receive the Runes and will also lose the transaction fee. Remember that you are competing with others to do the same thing, so during the last hour of a highly popular minting activity, network fees will skyrocket. Think of the mempool as an auction, where the highest bidder gets their transaction confirmed.

If you think that a certain Rune will not be minted quickly, be smart and choose a time when the fees are lower to try minting, as there is no urgency to mint. For example, Bitcoin network fees are usually lower during weekends and late North American hours. You can take advantage of this time to place minting orders in the mempool at a lower cost, and these orders can wait there for a few days before being confirmed.

Before minting, pay careful attention to the minting mechanism. For example, the hard-coded Rune called “UNCOMMON•GOODS” planned by Casey will be open for minting for the next four years. This means that it would be foolish and unwise to mint it on a day with the highest transaction fees in Bitcoin history. Instead, you should wait for a bear market or a time when transaction fees are very low and few people are using Bitcoin to mint. Otherwise, your Rune’s cost may be ten times higher than others.

The creators of Runes can pre-mint their own Runes, essentially treating the pre-minted amount as the quantity that will be sold on the market after minting is completed. A pre-mint ratio exceeding 10% is considered “greedy” when there has only been one Bitcoin transaction. In contrast, a pre-mint ratio of 5% is more reasonable. However, it is even better to look for or choose projects that do not have any pre-minting behavior.

Treat minting Runes as buying them, because that’s exactly what you are doing, except that you are paying to secure the Bitcoin network for the creators. In your mind, you should think in terms of market value. If a Rune requires 100,000 minting actions to complete and each minting action costs $100, then ask yourself if you are willing to buy this Rune on a decentralized exchange with a market value of $10 million. This understanding is crucial and can help you make wise decisions. For example, among the first 100 issued Runes, many will be open for minting. At this time, you should look for the one with the “least minting actions,” which means you can acquire the first 100 issued Runes with the lowest possible market value.