Bitcoin's BIP-110 Proposal Falters Amid Minner Resistance

The Bitcoin network is facing a proposal to limit non-financial data on its blockchain through BIP-110, but it has garnered almost no support from miners. The BIP-110 proposal aims to restrict arbitrary data inserts larger than 256 bytes and restore the previous limit for OP_RETURN. However, miner support remains below 1% with the current signaling period set to end in early August 2026.

Skeptics of the proposal include Michael Saylor and Adam Back, who have publicly spoken out against it. Saylor argues that changing consensus rules would be a precedent for censoring certain types of transactions, while Back believes that decentralization means imposing one's own vision on other network participants is impossible.

The chances of BIP-110 activation are slim, with the proposal set to be activated via a user-activated soft fork (UASF) instead of the traditional 95% threshold. If implemented, it would create a separate minority chain rather than upgrading the Bitcoin network.