Bitcoin’s BIP-110 Proposal Sparks Governance and Censorship Dispute
Bitcoin Improvement Proposal BIP-110 seeks to restrict non-financial transaction data on the blockchain, including inscriptions and runes, igniting a fierce debate over decentralization and censorship. The dispute goes to the heart of Bitcoin’s values: whether the network should remain neutral and permit any transaction for which a fee is paid, or filter non-monetary data that some developers regard as spam. More than a technical upgrade, the fight concerns who gets to shape Bitcoin’s future governance and community consensus.
As of mid-July 2026, the proposal, introduced by developer Luke Dashjr and the Ocean mining pool in late 2025, was at risk of failing for lack of support. It sought to cap witness data and OP_RETURN at 256 bytes and 83 bytes, respectively, and set a 55% miner activation threshold. Opponents including Adam Back warned that the measure posed censorship risks, leaving it difficult to implement without consensus.
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The history behind this eventBitcoin’s BIP-110 Sparks Community Battle Over Inscription Limits and Lower Activation Threshold
BIP-110, or the Reduced Data Temporary Soft Fork, proposes a soft fork lasting about one year to restrict non-monetary data written to the Bitcoin blockchain through OP_RETURN, inscriptions and other methods. Supporters say it would curb blockchain bloat and preserve Bitcoin’s use for payments. Opponents argue that fee-paying transactions should not be censored, turning the dispute into a broader battle over block space and governance rights.
The first supporting block was mined on March 2, 2026. As of July 18, only eight of 940 blocks in the current signaling period had signaled support, or 0.85%, far below the 55% threshold, which requires 1,109 of 2,016 blocks. Strategy founder Michael Saylor and Blockstream co-founder Adam Back oppose the proposal. A mandatory signaling period is expected to begin in August, with activation possible as early as September, though the risk of a minority chain split remains.
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