The recent listing of the BRC-20 token ORDI on Binance has sparked both excitement and controversy. Shortly after the exchange announced support for ORDI spot and contract trading, the token’s price surged dramatically—from around 7.4 USDT to a peak of 14.5 USDT within 24 hours, marking an increase of over 80%.
However, the situation took an unexpected turn when Casey Rodarmor, the creator of the Ordinals protocol, publicly requested that Binance revise certain links and information related to the ORDI token. This article explores the background, key concepts, and community reactions behind this request.
Understanding Key Concepts
What Is the Ordinals Protocol?
The Ordinals protocol, launched on the Bitcoin mainnet by software engineer Casey Rodarmor on January 30, 2023, introduces a method to inscribe content—such as images, text, video, and audio—onto individual satoshis (the smallest unit of Bitcoin). By leveraging Bitcoin’s SegWit and Taproot upgrades, the protocol allows these inscribed satoshis to be tracked, transferred, and traded.
What Are BRC-20 Tokens?
BRC-20 is a token standard introduced by an anonymous developer known as Domo on March 9, 2023. It operates on top of the Ordinals protocol, enabling users to inscribe JSON-based data to create and manage fungible tokens on Bitcoin. ORDI was the first token created using this experimental standard.
It’s important to note that while BRC-20 tokens rely on the Ordinals protocol, they are independent projects and are not officially affiliated with Ordinals or its founder.
Casey Rodarmor’s Stance on BRC-20 Tokens
Casey has been a long-time critic of BRC-20 tokens. He believes they contribute to network congestion, inefficient use of block space, and potential security risks—concerns that directly contradict his original vision for the Ordinals protocol.
The “Junk UTXO” Argument
In early September, Casey expressed his desire for developers to transition away from BRC-20 tokens, suggesting alternatives like Taproot assets. He specifically criticized the BRC-20 standard for generating excessive unspent transaction outputs (UTXOs), which he referred to as “junk UTXO” buildup.
When the minting of BRC-20 sats concluded on September 24 after six months, Casey highlighted the inefficiency of the process: over 21 million transactions were required, contributing significantly to mempool congestion and costing more than $21 million in fees.
Introducing Runes: A Proposed Alternative
On September 26, Casey introduced Runes—a UTXO-based fungible token protocol designed to improve upon BRC-20. According to Rodarmor, Rymes would integrate more naturally with Bitcoin’s architecture, minimize UTXO proliferation, and offer a more efficient user experience.
He later took to social media to promote Runes, suggesting it would bring more intentional and less spammy token creation to the Bitcoin ecosystem. When a community member expressed skepticism, Casey invited feedback on how BRC-20’s process could be improved.
Security Concerns and Community Response
Casey also raised security issues, including a theoretical attack vector involving malicious inscription transfers that could lock users’ funds. In response, Domo—creator of the BRC-20 standard—proposed a security upgrade called “fraction” to mitigate such risks on November 4.
Domo emphasized that the proposal was optional and intended to preserve the simplicity of the BRC-20 standard. To date, there have been no confirmed instances of the attack Casey described.
Binance’s Response and Market Impact
Following Casey’s request, Binance updated the ORDI token information page, removing references to Ordinals-related websites and adding a clarification that ORDI is the first token created under the BRC-20 standard—with no official ties to the Ordinals protocol.
Despite the controversy, ORDI’s market performance remained strong. The token continued trading above 13 USDT, with a 30% gain on the day following the incident, indicating that investor confidence was largely unshaken.
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Frequently Asked Questions
What is the difference between Ordinals and BRC-20?
Ordinals is a protocol for inscribing data on satoshis, while BRC-20 is a token standard built on top of Ordinals that enables the creation of fungible tokens on Bitcoin.
Why did Casey Rodarmor want Binance to change ORDI’s information?
Casey wanted to clarify that ORDI and other BRC-20 tokens are not affiliated with the Ordinals protocol or its related organizations, aiming to prevent confusion among users and investors.
Did Casey’s request affect the price of ORDI?
No, ORDI’s price remained strong and even increased shortly after the request, suggesting that the market did not interpret the event as negatively impactful.
What is the Runes protocol?
Runes is Casey Rodarmor’s proposed alternative to BRC-20. It is designed to reduce UTXO bloat and improve efficiency when creating tokens on Bitcoin.
Are BRC-20 tokens considered secure?
While potential risks have been theorized, no major exploits have been reported. The BRC-20 community continues to evaluate and implement improvements to security and usability.
Where can I learn more about Bitcoin-based tokens?
For those looking to deepen their understanding, several educational resources and platforms provide updates and technical insights into Bitcoin token standards and market behavior.