Popular Science | Runes Pre-mining Concept
The essence is a trust in the commitments made by the project party.Author: Jacky
X/Twitter: @zxl2102492
To read about the past and present of the Runes protocol, you can click on this article 👇
What is the Concept of Traditional Pre-mining
Before the recent explosion of the Bitcoin ecosystem, pre-mining was a practice where project teams generated a certain amount of tokens before the public issuance of the token. These pre-mined tokens are usually used for project development funds, marketing, team rewards, partner incentives, and so on.
What is the Concept of Runes Pre-mining
Currently, the RSIC and Runestone with pre-mining attributes represent a different definition of pre-mining. In summary: before the Runes mainnet goes live, inscription NFTs are issued as proof. Once the Runes mainnet is launched, the issuer will uniformly generate the corresponding Runes symbols and distribute them to the holders of the inscription NFTs according to a certain cumulative quantity mechanism.
The main difference from past concepts is that the pre-miners have shifted from the project team to the holders of the inscription NFTs.
RSIC is explicitly a pre-mining machine; by holding RSIC according to the mechanism, one will mine/accumulate the Runes symbols that the project team will issue in the future. After the Runes mainnet officially launches, the Runes symbols issued by the project will be airdropped to the addresses that participated in the pre-mining based on the number of pre-mined symbols.
Runestone currently appears to be purely a proof, and the specific distribution mechanism for future Runes symbols is still unclear.
Key Points of Pre-mining:
1️⃣ First: Since the Runes protocol itself has not yet launched, strictly speaking, there are currently no Runes symbols.
2️⃣ It involves a trust and commitment mechanism, meaning the project team commits to distributing Runes symbols to NFT holders at a future point in time according to established rules and conditions.
3️⃣ Since the Runes protocol mainnet has not yet launched, what is currently available on the market is only Ordinals inscription NFTs, and there are no actual Runes symbols. Therefore, investors and participants need to have a certain level of trust in the project team, believing that they will fulfill their future commitments. This also means that pre-mining projects carry certain risks, as the success of the project depends on various factors, including technical implementation, market acceptance, community consensus, and more.
4️⃣ Therefore, this is why all Runes track projects are referred to as conceptual projects, as there are currently no real Runes symbols. Since the theme revolves around Runes, they are called Runes conceptual projects.
PS: Everyone must understand that the basic airdrop for such projects is mostly “inscription NFT pre-mining machines.”
Disclaimer: This article is for reference only and should not be used as legal, tax, investment, financial, or any other advice, and does not represent the position of RunesCC.
