# Introducing BTC•FEERATE•RUNES By [Alkimiya](https://paragraph.com/@alkimiya-protocol) · 2025-03-18 --- Bitcoin transaction feerate can be highly unpredictable. During off-peak hours, they might be as low as 1 sat per byte, but during peak demand, fees can soar into the hundreds of sats for priority transactions. BTC•FEERATE•RUNES is an innovative Rune collection designed to tokenize BTC transaction fees. It is the first Rune to have its value tied directly to feerate, allowing users to periodically "bank" feerate and mitigate the impact of rising costs. **Traders are able to take advantage of on-chain events such as** [**Babylon Cap-1 launch**](https://alkimiya.io/blog/fortune-in-the-bitcoin-fee-asco)**,** [**Magic Eden airdrop**](https://x.com/alkimiya_io/status/1845854295385903517)**, and** [**popular Rune mints**](https://alkimiya.io/blog/memento-feerate)**.** ![Popular Rune mints. Source: mempool.space](https://storage.googleapis.com/papyrus_images/1905d0bbce5365243a76507be630657102e4d4158a2eb66a92a268075582c901.png) Popular Rune mints. Source: mempool.space In August 2024, the launch of [Babylon’s Bitcoin Staking Program - Phase 1](https://babylonlabs.io/blog/babylon-bitcoin-staking-mainnet-launch-phase-1) caused a 90x spike in BTC transaction fees, jumping from approximately 8 sat/vB to 717 sat/vB within a single block. Successful stakers spent a total of 53.405 BTC ($3.4m) in fees while unsuccessful stakers spent an additional 4.723 BTC ($0.35m) to unbond their transactions. In October 2024, Runes activity surged once again, leading to over 150 BTC ($13.5m) spent in fees. This was due to a number of Runes mints including but not limited to [$PUPS](https://x.com/alkimiya_io/status/1843323134222704791), [$FRIDGE](https://x.com/alkimiya_io/status/1843851947432128850), [$YOURMOM](https://x.com/alkimiya_io/status/1844001637192614022), [$POOKA](https://x.com/alkimiya_io/status/1846944613673980413), [$CYPHER](https://x.com/alkimiya_io/status/1849811551701934221). During this period, 74.336 BTC ($6.7m) was traded on Alkimiya with PnLs seeing a high of ~315%. We’ve created a community-based Feerate Alpha Events calendar where everyone can submit information about on-chain events. If an event has been verified by Traders on Discord, they will be marked as “Verified by Community”. Heard of an upcoming hyped event and think it will affect feerate? [Submit an event](https://alkimiya.notion.site/Feerate-Alpha-Events-1492317b4b2980ae8de5e80f89a66be4?pvs=4)! Have an opposing view of a submitted event? Talk about it in our [Discord](https://discord.gg/alkimiya) server! Tracking Feerate ---------------- The redemption value of **BTC•FEERATE•RUNES** _tracks the average BTC network feerate_ in real-time. When the feerate spikes, your **BTC•FEERATE•RUNES** increases in value, which partially offsets the transaction fees you spend during congestions. Each unit of **BTC•FEERATE•RUNES** is backed by 1vB of LONG position on Alkimiya pools, which tracks the average weekly median BTC feerate per block. ![Alkimiya Bazaar](https://storage.googleapis.com/papyrus_images/30960c2fa7a8c60824d50edff23623a47292d8fd68ec6bc9ea42a97235f276c3.png) Alkimiya Bazaar Users can freely buy or sell **BTC•FEERATE•RUNES** on any regular Runes platform. If the secondary market prices diverge significantly from the tracked feerate, an arbitrage opportunity is created. Redemption ---------- Users can redeem BTC•FEERATE•RUNES for the underlying BTC, the payoff calculation is: Payoff = min(Cap, max(0, (Avg(Median_Feerate of all blocks in POOL) - Floor))) * # BTC•FEERATE * (1 - Claim_Fees) The estimated redemption payoff is regularly updated in a dedicated channel (#btc•feerate•runes) on our [Discord](https://discord.gg/alkimiya) server, so that users can check before making their decision. * Redemptions are processed from the ongoing pool with the most activity at the time of the Claim Request. * Claim Fees: 5% * Minimal Claim Size: 10,000 **BTC•FEERATE•RUNES** (10k vB) ![BTC•FEERATE•RUNES Lifecycle](https://storage.googleapis.com/papyrus_images/23eeda6b363eef6756ee1371242f0a59c3aa4e95aa1a46dceb3787a194fa1ad5.png) BTC•FEERATE•RUNES Lifecycle You can redeem your BTC•FEERATE•RUNES via our [official page](https://alkimiya.io/btc%E2%80%A2feerate%E2%80%A2runes). ![BTC•FEERATE•RUNES Claim Process](https://storage.googleapis.com/papyrus_images/ccef64e555134a89d6996761f7b9bbffedd7fe25e35f21993564d64cd83eceee.png) BTC•FEERATE•RUNES Claim Process What is Alkimiya? ----------------- Alkimiya, a pioneering blockspace markets protocol that enables users to directly trade Bitcoin transaction fees. By using Alkimiya’s innovative tool, users can trade, hedge against, and capture the value of highly volatile Bitcoin transaction fees, which can swing dramatically from 20x to 500x within a single week. This primitive is also designed to capture the value of most on-chain activities that contribute to increased transaction fees. Visit our [Docs](https://docs.alkimiya.io/) to learn how Alkimiya works; or Check out our [BTC Fee Handbook](https://handbook.alkimiya.io/) to learn to trade on Alkimiya. **Join our community:** [**Twitter**](https://x.com/alkimiya_io) **|** [**Discord**](https://discord.gg/alkimiya) --- *Originally published on [Alkimiya](https://paragraph.com/@alkimiya-protocol/introducing-btc-feerate-runes)*