Runes Handbook
  • 1. Introduction
  • 2. Origins
    • Segregated Witness (SegWit) Upgrade
    • Taproot Upgrade
    • Inscriptions
    • Ordinal Theory (Ordinals)
      • Rarity
      • Supply of Rare Satoshis
      • Names
    • BRC-20
    • Why Runes?
  • 3. Runes
    • Bitcoin’s UTXO Model
    • The Runes Protocol
    • OP_Return
    • Motivation for Runes
    • Bitcoin Runes vs BRC-20
    • Launch
      • The First Runes
    • What are Bitcoin Runes For?
      • Memecoins
      • DeFi
  • 4. How Do Bitcoin Runes Work?
    • Etching (Creating a Rune)
      • Name
      • Symbol
      • Divisibility
      • Premine
      • Terms
    • Minting
    • Transfering
    • Runestone
    • Rune Seasons
    • Ecosystem
      • Launchpads
      • Marketplaces
      • Wallets
      • Data / Analysis
      • Explorers
    • Storing Bitcoin Runes
  • 5. Terminology
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  1. 4. How Do Bitcoin Runes Work?

Transfering

The final stage of the process is transferring Runes. When Bitcoin UTXOs contain Runes they are transferred to the transaction outputs when you transfer that UTXO.

Specifically, if you transfer multiple UTXOs with different amounts of various Runes, all of those Runes will be sent to the first non-OP_RETURN output of that transaction.

The user can utilize a Runestone (discussed in detail in the next section) to customize and manage how and which input Runes get transferred to which outputs. These Runestones allow users to control the distribution of Runes across different outputs during a transaction, providing flexibility and granular control over the transfer process.

In essence, a creator etches a Rune, setting its properties, and then users can mint and transfer it — an intentionally simple system.

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Last updated 1 year ago