🏗️▣ ⛏Runes Function
What will Runes do for NiftySats?
Why Runes?
What is the purpose of Runes to begin with? If you haven't already, take the time to watch the introductory video by Casey Rodarmor, creator of Ordinals and the Runestone protocol.
At its core, "runes" is a generic term for a new fungible token standard coming to Bitcoin, just like the term "ERC-20" is the fungible token standard on Ethereum. Thousands of ERC-20 tokens exist for a myriad of purposes...or for no purpose at all.
For instance, LINK powers a cross-chain oracle, while UDST is a stable coin representing a digital US Dollar. MANA is integral to Decentraland's metaverse, while memes like SHIB and PEPE exist just for fun. All of these examples have tens of billions in capital invested, with millions of holders and active participants.
Anyone can create any supply of ERC-20's, just as anyone will soon be able to create any supply of runes. But creating a supply of tokens is the easy part. Creating demand for that supply is what sets a token apart.
So what will NiftySats runes do?
Since NiftySats is building a biosphere of character collections and inscriptions on top of Bitcoin, it only makes sense that any fungible token incorporated into that ecosystem be built on Bitcoin as well. This is what led us to launch $PERQ in the first place; which happened months before runes were ever conceived or announced by Casey.
At the time, BRC-20 was the first and best attempt at having a fungible token protocol on Bitcoin, and it works. It just has a number of inefficiencies; namely, centralized indexers and unnecessary network bloating. But now that the release of runes is imminent, we are gearing up for the road ahead.
While $PERQ exists to serve as an on-chain whitelist for collection mints, the forthcoming NiftySats rune will play a different role. However, being that we are based in the United States, we need to be cautious about ascribing any sort of utility to tokens before their launch, as regulators are often quick to call such tokens "unregistered securities".
So for now, in keeping with local regulatory best practices, we'll just call our rune an ecosystem rune and nothing more. Do with that what you will. But as we said above, anyone can create a supply of tokens or runes, the advantage comes with creating demand for said supply. So we will incorporate the rune in such a way so as to create demand for the rune within our ecosystem.
What we can say is that our rune will have great "memonics", and will be used to reward community members and unlock various benefits in the wider ecosystem. The foremost example of that is by holding slugs to participate in the genesis distribution.
Also, since runes are an expansive upgrade to the BRC-20 protocol, we anticipate migrating $PERQ to the runestone standard at some point in the future. That would come much later in the evolution of the ecosystem, as our primary focus is on the character collections and the ecosystem rune, and there are already numerous platforms and infractures to support BRC-20s.
We will still move forward with all existing plans for $PERQ without any issue. But as tools and infrastructure begins to be built around the runes protocol, we will look to "upgrade" $PERQ to that standard, where it will continue its original purpose as the on-chain whitelist token for NiftySats collections; albeit, in a more efficient manner.
This NiftySats ecosystem of ours is often referred to as "The Lagoon". This Lagoon consists of all original hand drawn art and a purpose built fungible token. Nothing we've done yet, dating back to our beginnings in 2019 has ever been done frivolously or without meticulous planning. So by incorporating runes into the Lagoon, we are taking a giant leap forward into efficient operations on the Bitcoin network, with purpose in mind. Come join us for a swim!
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