BRC-20 Token Minting Guide: How to Obtain Fungible Tokens on the Bitcoin

Introduction to BRC-20 Tokens and How They Work

The BRC-20 token is an experimental fungible token standard launched in March 2023 by an anonymous developer, @domodata, on the Bitcoin blockchain.It utilizes the Ordinals protocol (Bitcoin), which allows users to inscribe arbitrary data—such as text or images—onto satoshis, the smallest unit of Bitcoin, thereby giving each satoshi a unique identity.BRC-20 tokens define their deployment, minting, and transfer rules by inscribing specific JSON-formatted text data onto satoshis.

Unlike ERC-20 tokens on Ethereum, BRC-20 tokens do not rely on smart contracts to manage token logic and state. Instead, their token balances and transaction states are primarily tracked and maintained by off-chain indexers.This means that if different indexers interpret on-chain data differently, it could lead to inconsistencies in the token ledger.

BRC-20 Ecosystem Development and Features

The emergence of BRC-20 tokens was made possible by the 2021 Taproot upgrade to the Bitcoin, which enhanced the flexibility and privacy of Bitcoin scripts.Since its launch in March 2023, the BRC-20 token has rapidly gained popularity within the cryptocurrency community, attracting a large number of traders and speculators. Its total market capitalization once exceeded $1 billion and has reached even higher levels in subsequent developments.

However, the BRC-20 ecosystem remains in its early stages of development, with ongoing improvements in areas such as wallet infrastructure, trading platforms, and indexer reliability. Notably, in September 2025, reports emerged regarding a “BRC20” upgrade aimed at embedding Ethereum Virtual Machine (EVM) functionality into the underlying Bitcoin protocol.However, it should be clarified that this typically refers to specific projects or visions for the future potential of BRC-20, rather than indicating that the BRC-20 standard itself already possesses smart contract functionality.

The Principle Behind BRC-20 Token Minting

The minting process for BRC-20 tokens essentially involves inscribing a predefined JSON data string onto one or more satoshis.This JSON data contains instructions for the minting operation, such as the token code (ticker) and quantity to be minted. Once the inscription is complete and confirmed by the Bitcoin network, the tokens are “minted” and associated with the Bitcoin address holding the satoshis.

Before minting, the token’s “deployment” process must be completed. The deployment phase involves engraving JSON data onto the Satoshis that defines the token’s maximum supply, token code, and minting limits per transaction, thereby formally establishing the token standard on the Bitcoin network.

Preparations Before Minting BRC-20 Tokens

To mint BRC-20 tokens, you need to complete the following preparations:

• Select a compatible wallet: You need an Bitcoin wallet that supports the Ordinals protocol and BRC-20 tokens. Popular options include UniSat Wallet, Xverse Wallet, OKX Wallet, and Bitget Wallet. These wallets are typically available as browser extensions or mobile apps.
• Deposit Bitcoin (BTC): Minting BRC-20 tokens requires paying transaction fees on the Bitcoin network. Therefore, ensure you have a sufficient BTC balance in your chosen wallet. The tokens themselves are typically minted “for free,” but network fees are essential.

BRC-20 Token Minting Process (Using UniSat as an Example)

Here are the general steps for minting BRC-20 tokens using the UniSat wallet:

1. Install and set up the UniSat wallet: If you haven’t already, download and install the UniSat wallet browser extension from official sources. Follow the prompts to create a new wallet or import an existing one, and keep your mnemonic phrase safe.
2. Fund your UniSat wallet with Bitcoin: Send Bitcoin to your UniSat wallet address to cover transaction fees.
3. Access the UniSat Marketplace or DApp Browser: Open the UniSat wallet and use its built-in DApp browser, or go directly to the marketplace page on the official UniSat website.
4. Select the BRC-20 token you want to mint: On the marketplace page, you’ll see a variety of deployed BRC-20 tokens. Select the token you wish to mint and ensure that it still has available minting quota.
5. Execute the minting operation: Locate the “Mint” function for that token. The system will prompt you to confirm the minting amount (usually the maximum per mint) and the estimated transaction fees.
6. Confirm and pay the transaction fee: Carefully review the transaction details, including the token information and transaction fee. Once you’ve confirmed everything is correct, submit the transaction. Your Bitcoin will be used to pay the fee for this minting transaction.
7. Wait for network confirmation: After submitting the transaction, you’ll need to wait for the Bitcoin network to confirm your minting transaction. Confirmation time depends on current network congestion and the amount of fees you paid. Once the transaction is confirmed, the BRC-20 tokens you minted will appear in your UniSat wallet.

Minting Notes

• Transaction Fee Fluctuations: Transaction fees on the Bitcoin network fluctuate based on network congestion. During peak times, fees may be higher and confirmation times may be longer. You can choose to pay a higher fee to speed up confirmation.
• Verification Information: Before minting, be sure to carefully verify the token’s mint ID, deployer information, and token code to avoid minting cloned tokens or falling victim to scam projects.
• Experimental Nature: The BRC-20 standard is still in the experimental phase, and its long-term stability and security remain to be proven over time. Participating in minting and trading carries certain risks.

Opportunities and Challenges of BRC-20

BRC-20 tokens bring new possibilities to the Bitcoin blockchain. Supporters believe they can attract more users and developers, increase demand for Bitcoin, and open up new avenues for applications such as DeFi and NFTs. They also provide Bitcoin miners with additional revenue from transaction fees.

However, BRC-20 also faces numerous challenges. Its lack of smart contract functionality limits its use cases, particularly in complex DeFi applications. At the same time, large-scale BRC-20 activity may lead to network congestion on Bitcoin and rising transaction fees. Reliance on off-chain indexers also poses potential centralization risks and the possibility of ledger forks.Furthermore, many BRC-20 tokens are highly speculative, with their value driven primarily by market sentiment, posing significant risks.