What is RSIC, and why are people spending $2,000 to buy them on secondary markets? Fungible tokens, akin to traditional money, are identical assets that can be easily replaced if lost. Unlike unique NFTs, which are non-fungible tokens, fungible tokens like ERC-20 tokens (ETH) operate on the principle of interchangeability – 1 LINK is always equal to 1 LINK.
The first fungible token protocol on Bitcoin, BRC-20, achieved success, with the initial token $ORDI reaching a $1 billion market cap several months ago. Since then, various fungible token protocols have been under development, with one of the most anticipated being “Runes,” designed by Casey Rodarmor, the inventor of Bitcoin Ordinals.
On January 22, a day after the 1-year anniversary of Ordinals, a mysterious collection named “RSIC,” or Rune Specific Inscription Circuits, was distributed to thousands of wallets holding Ordinals. The term “RSIC” cleverly plays on the acronym “ASIC,” which refers to specialized microchips designed for specific tasks, such as Bitcoin mining.
The RSICs distributed function as “digital mining rigs” aimed at “mining” a yet-to-be-created fungible token, presumed to be the first Runes. While Runes are not live yet, and there is no absolute assurance that the RSIC creator will successfully launch the first Runes, the creator remains confident, especially with a plan tied to the day of the Bitcoin halvening.
The RSIC creator, although not guaranteed, claims they will be the first to create Runes tokens once the protocol goes live during the Bitcoin halvening. Despite the uncertainty, there is a strong belief that the creator is well-prepared, being technically proficient and well-capitalized, and wouldn’t have orchestrated this drop without a reasonable certainty of success.
But how do RSICs function? Once an RSIC is transferred, it becomes “activated.” If it was inscribed to your wallet, a simple self-transfer will activate it. Activated RSICs earn 21 Runes for every confirmed Bitcoin block, equivalent to approximately 21 every 10 minutes, 126 every hour, and 3,024 every day. These earned Runes are tied to the wallet holding the RSICs.
After the Bitcoin halvening, Casey will launch Runes, and the RSIC creator will strive to be the first to launch. If successful, RSIC holders will receive an allocation of the initial Runes. Despite uncertainties about whether this will indeed lead to the first Runes, many see the RSIC drop as a clever and novel move within the Ordinals community.
In the opinion of many, this drop stands out as one of the most ingenious and well-executed initiatives seen across collections. It has become a significant win for almost everyone involved in Ordinals, showcasing creativity, strategic thinking, and high-level execution. The community eagerly anticipates the unfolding of this innovative play in the crypto space.
