Runes over Lightning

Bringing Bitcoin-native tokens to Lightning Network

An open-source development environment for building, testing, and experimenting with Rune asset integration on the Bitcoin Lightning Network.

Bitcoin-Native

Built on Bitcoin's security model

Lightning Fast

Instant payments and settlements

Secure

Leverages Bitcoin's proven security

About the Project

This project provides a dedicated development environment to explore how Rune assets can be issued, transferred, and settled over Lightning. While Runes currently have no Lightning implementation, this repository aims to bridge Runes (Bitcoin-native fungible tokens) with Lightning's instant payment capabilities in a simpler, more robust way than existing token-over-Lightning systems.

Our goal is to research and define specifications for Rune-over-Lightning transport, prototype integration with existing Lightning nodes, and test off-chain settlement flows including burn-at-close, dust-free exits, and redeem-on-burn models.

2 Languages
⚡ Lightning
Bitcoin

Why Lightning Integration for Runes Matters

Scalability

Lightning Network enables millions of transactions per second, making Rune transfers instant and cost-effective.

Cost Efficiency

Eliminate high on-chain fees by settling Rune transfers off-chain through Lightning channels.

Security

Maintain Bitcoin's security model while enabling complex token operations through Lightning's trustless channels.

Global Adoption

Enable micro-payments and instant settlements for Rune-based applications worldwide.

Key Features

Controlled Minting

Precise control over Rune supply with programmable minting rules and governance mechanisms.

Burn-and-Mint Mechanism

Efficient token economics with controlled burning and minting for stable value preservation.

UTXO & Dust Reduction

Optimized UTXO management to reduce blockchain bloat and improve network efficiency.

Runes vs. Taproot Assets

Feature Runes Taproot Assets
Bitcoin-Native ✅ Built on Bitcoin's security model ⚠️ Requires additional infrastructure
Lightning Integration ✅ Direct Lightning support ✅ Lightning support
UTXO Efficiency ✅ Optimized for Bitcoin's UTXO model ⚠️ Can create UTXO bloat
Scalability ✅ Millions of TPS via Lightning(need implementation) ✅ Millions of TPS via Lightning
Cost ✅ Minimal fees via Lightning(need implementation) ✅ Minimal fees via Lightning
Adoption ✅ Growing Ordinals ecosystem ⚠️ Newer, less established

Technical Documentation

Architecture Overview

This project uses a hybrid multi-language architecture to bridge the on-chain Rune protocol with Lightning Network capabilities:

  • Go (Lightning Integration): LND gRPC client integration, custom TLV encoding
  • Rust (Rune Protocol): Ord client integration, Runestone decoding, settlement flows
  • Cross-Layer Integration: REST/gRPC APIs between services

Use Cases

Stablecoins

Create Bitcoin-native stablecoins with instant Lightning settlements and global accessibility.

Cross-Chain Swaps

Enable trustless cross-chain asset swaps with Lightning's instant finality.

Fiat Redemption

Seamless fiat on/off ramps with Lightning's global payment network.

Gaming & NFTs

In-game currencies and NFT marketplaces with instant micro-transactions.

DeFi Protocols

Decentralized finance applications with Bitcoin-native tokens and Lightning speed.

Global Commerce

International trade and remittances with minimal fees and instant settlement.

Contribute

We welcome contributions from Bitcoin, Lightning, and Rune developers! This is an open-source project that thrives on community involvement and technical innovation.

Discuss

Open GitHub issues for technical discussions and ideas

Develop

Fork the repo, implement features, and submit PRs

Test

Run our sandbox locally, break things, and report findings

Document

Help improve setup guides, diagrams, and protocol specs