Open Etching

[casey]

Distribution via burn: after creation, some amount of un-allocated coins can be claimed by burning sats. Can be boxed to a certain block height after creation. (Credit to windsock on twitter.)

Note to self: One thing I dislike about BRC-20 style airdrops is that they aren't amenable to SPV proofs. E.g, you have to see every single transaction to know whether or not a mint transaction is valid. However, with burns that are limited to a block height, if the restriction is in place that even if every single sat is burned, you won't overflow the token maximum value, then you know that every single burn within a block range is valid, even if you don't see every single transaction.

You could support BRC-20 style airdrops that didn't require a burn if you ensured that even if every single transaction was a BRC-20 airdrop, it wouldn't overflow the max token value. This would require bounding by height, or by using such a low value that even if every transaction was a mint, until the end of time, you wouldn't overflow the token max value.

Some interesting questions:

• How to specify exchange rate: runes/sat or sats/rune
• Given an exchange rate, what is the minimum supply?
• How to represent a max block height?
• If rune A and rune B both require burning sats, you should need to burn sats for both.
• If burn amount is 0, then we must ensure that even if all transactions up to stop height are mints, supply cannot be overflowed.
• Add maximum mint amount per transaction.