- Bitcoin Improvement Proposal (BIP-110) aims to limit non-financial data in the Bitcoin network.
- The proposal faces minimal support, with less than 1% backing from miners.
- Prominent figures like Michael Saylor and Adam Back oppose BIP-110 due to concerns over consensus rules.
- BIP-110 suggests temporary restrictions on arbitrary data publication for a year.
- There is a risk of creating a minority chain if activation criteria are not met.
Bitcoin Approaches the BIP-110 Deadline with Minimal Support
As Bitcoin approaches the deadline for implementing BIP-110 in early August 2026, discussions intensify around its implications. The proposal seeks to temporarily restrict the publication of arbitrary data within the Bitcoin network. However, it currently garners less than 1% support from miners, raising questions about its feasibility.
The Debate Around BIP-110
BIP-110, also known as Reduced Data Temporary Soft Fork, proposes to tighten rules regarding non-financial data placement in Bitcoin’s blockchain for one year. Key measures include reverting to previous limits on OP_RETURN and blocking most arbitrary data inserts larger than 256 bytes. It also plans to restrict specific script formats used for storing images and metadata, notably affecting protocols like Ordinals.
Proponents argue that these changes will refocus Bitcoin on financial transactions and reduce network load. Critics counter that such changes could set a dangerous precedent by altering consensus rules and censoring certain transaction types.
Saylor and Back’s Opposition
Michael Saylor, founder of Strategy, is one of BIP-110’s vocal critics. He contends that there are “110 things more dangerous for Bitcoin than spam,” suggesting that changing consensus over this issue poses greater risks by invalidating legitimate transactions.
Similarly, Adam Back, CEO of Blockstream and creator of Hashcash — an integral part of Bitcoin’s mechanism — voiced his concerns. While acknowledging supporters’ intentions to protect the network, he emphasized that their approach contradicts Bitcoin’s core principles of decentralization and broad technical consensus.
Challenges with Activation
Unlike most Bitcoin updates activated through traditional methods requiring a 95% signaling threshold, BIP-110 proposes using a User Activated Soft Fork (UASF) with just 55%. The current signaling period runs from block 957600 to block 959615, with a voluntary deadline around early August at block 961542. Should nodes running BIP-110 begin rejecting blocks without corresponding signals without widespread network support, it may result in only a minor chain split rather than an official update.
Despite nearly nonexistent miner backing, concerns about non-financial data remain relevant. Previous policy changes on OP_RETURN significantly increased such data on the network, sparking renewed debate about blockchain space usage.
In contrast to tightening restrictions, some developers like Peter Todd have advocated loosening OP_RETURN constraints to enhance efficiency while encouraging less harmful data publication methods.
Ultimately, while BIP-110’s future remains uncertain given current miner opposition and potential technical challenges ahead — its proposal highlights ongoing discussions influencing crypto policies globally today.
