How to Etch & Mint Runes Tokens: A Step-by-Step Guide

The Runes Protocol has become the Bitcoin community’s de facto standard for fungible tokens on Bitcoin, allowing anyone to create and launch tradable tokens on Bitcoin Layer 1. 

But before you can get a Runes token to trade, it first needs to be etched and minted. That’s what this guide is about. 

Read on to learn how to etch and mint Runes, so that you can create your own Runes tokens or get your hands on some of the latest ones available for minting. You’ll also learn how you can use Runes as lending collateral to borrow bitcoin on Liquidium.   

What Are Runes? 

The Runes Protocol lets users create fungible tokens on Bitcoin Layer 1 with very little technical knowledge required. In fact, by reading this guide, you’ll learn how to do it yourself. 

Runes were created by developer Casey Rodarmor, who is also the developer behind Ordinals. The idea was to create a protocol similar to BRC-20, an earlier standard for fungible tokens on Bitcoin, that would tackle what many consider the drawbacks and issues with this experimental token standard.

Currently, there are hundreds of Runes tokens, and the protocol has proven itself to be great for creating memecoins. BitcoinFi platforms, like Liquidium, add another use case to them: borrowing and lending bitcoin against your Runes stash.

What Are Etching And Minting? 

Etching and minting are the two key steps in the process of creating a Runes token. 

• Etching refers to the creation of the token itself: setting its name, supply, and any other rules about its existence. 

• Minting is how people get the actual token: it’s basically buying a token from the creator when it first launches. 

While only the token’s creator can etch a token, in most cases, anyone can mint it afterwards. In that sense, etching corresponds with the creation of the token, while minting refers to its distribution. 

What Do You Need to Etch And Mint Your Own Runes? 

To etch and mint your own Runes, you need to decide what you want to etch, the funds to make it happen, a Runes wallet, and a platform that will help with your project. 

The cost of etching and minting Runes depends on several factors, including network fees, transaction times, etc. In general, however, once you’ve chosen a platform for etching and minting Runes and entered all the information of your own Runes token, you’ll see the price before you commit to anything.

How to Etch Runes, Step by Step

To start etching Runes, first find a platform that supports the process. A popular example is Luminex, which is widely used for both etching and minting and is pretty beginner-friendly.

First, connect your wallet to be able to use the platform. There are a number of Bitcoin wallets supported here. 

Then, it’s time to create your token.

Here are the parameters you’ll need to set in order to etch a Runes token:

• Name: Set a name for your Runes token. Currently, there’s a minimum of 12 characters required; this minimum is going down with time.

• Decimals: This refers to the divisibility of your token. You can leave it at zero, which is the default, or add up to 38 decimals if you want fractions of the token to be tradeable as well.

• Symbol: You can either choose a letter representing the Runes token or even an emoji.

• Max supply: This is how many tokens can be minted in total. You can either set a fixed amount or make it unlimited.

• Limit per mint: This is how many tokens can be minted at once by anyone. This is a great way to make sure nobody owns the majority of your token.

• Reserve supply: If you want some of the tokens left to yourself, set the number here.

• Block limit (optional): Luminex lets you set the number of the block when the mint will start and the number when it will end. Both of these are optional.

• Fee: Choose between the offered transaction times and fees (slow, medium, fast) or enter a custom amount to pay.

Once you’ve set all these parameters, it’s time to click on the ‘Etch’ button. It takes six Bitcoin blocks, around an hour, for the process to be finalized.

How to Mint Runes, Step by Step 

Ready to start minting? You can do this on Luminex as well, so no need to leave the platform just yet.

To start minting, enter the Runes ticker into the ‘Mint’ tab on the platform. 

Then you’ll see the token’s progress: how many tokens have already been minted, how many are reserved for the creator, and if there are any left for you to mint.

Next, select the number of splits you want. If you’re using the pre-split option, you’ll set the number of mints you want (the total number of tokens is shown below and depends on the number of tokens within a single mint). This option is faster but comes with lower mint limits. 

If you’re using auto split, you’ll be able to set a significantly higher mint amount, but it will take much longer to complete.

Finally, set the fee you’re paying (slow, medium, fast, or custom) and click on the Mint option. 

Make sure you’ve reviewed all the terms, and then just wait for the tokens to show up in the wallet you’ve connected!

And that's it!

Borrow Bitcoin Against Runes on Liquidium 

Now that you know how to mint Runes, you can use many of them as collateral to borrow bitcoin on Liquidium. 

If you need BTC but don’t want to sell the Runes you’ve minted, you can use Liquidium to borrow BTC while locking up your Runes as collateral. 

All you need to do is: 

1. Connect your wallet to the Liquidium app.

2. Go to the Borrow Runes dashboard. 

3. Pick the token you want to use as collateral and click on ‘Borrow.’

4. Choose the bundle size and transaction speed, and make sure you’re happy with the borrowed BTC amount and interest. 

5. Sign the transaction and wait for your loan offer to be accepted by the lender. 

6. Receive your borrowed BTC and monitor the loans on the Portfolio dashboard. 

Don’t worry: as long as you pay back the borrowed amount within the specified time frame, you’ll receive your Runes back.

Additionally, you can also lend your BTC against Runes on Liquidium. You won’t actually get access to the Runes unless the loan defaults, but it’s still a great way to generate yield if you have idle BTC or just want to get those Runes for a good price if the loan defaults. 

Also, on Liquidium, you can swap your BTC for Runes (and vice versa), making Runes trading more accessible and easier than ever.

Connect your wallet to the Liquidium app to start borrowing and lending BTC using Runes as collateral.

Disclaimer: This article does not constitute financial advice, and we strongly recommend conducting your own research and consulting with a professional financial advisor before making any investment decisions. We are not liable for any potential losses incurred from applying the strategies discussed. Proceed with caution and at your own risk.

FAQs

What does etching a Rune mean?

Etching a Rune (or Runes token) means creating it: setting the name, symbol, maximum supply, mintable amount, etc. This is how you bring a Runes token into existence; the next step, distributing it, is called minting. 

What is the difference between minting and etching?

Etching is the first step in the process of creating a new Runes token. It refers to setting all the necessary parameters to your token and then letting people start minting it. Minting is, therefore, the next step and it’s the way the token is distributed. Anyone can mint a token, but only its creator can etch it.