David Bailey, founder of Nakamoto, announced that the BIP 110 proposal for the Bitcoin network, which had been scheduled for implementation in the coming weeks, will no longer move forward. The withdrawal of this proposal has reignited the ongoing technical and governance debates that have gripped the Bitcoin community for months.
What was the aim of BIP 110
Known as the Reduced Data Temporary Soft Fork, BIP 110 was first introduced by developer Dathon Ohm in December 2025. The proposal intended to place limits on certain types of data included in Bitcoin transactions, which were seen by some as unnecessary. Supporters believed extensive data could undermine Bitcoin’s core role as a value transfer network while increasing the costs of running nodes.
Mini glossary: A soft fork means a backward-compatible rule change in the blockchain, while a node refers to a participant running software to validate transactions and blocks, thereby maintaining network security and decentralization.
The draft envisioned a 34-byte limit for new transaction outputs and an 83-byte cap for certain data types. These limits were designed to last for one year, and coins issued before implementation would not be affected.
David Bailey described the failed soft fork attempt as ultimately positive for Bitcoin, characterizing the cancellation campaign as a hostile takeover attempt.
Weak support, rising opposition
Despite months of discussion, BIP 110 failed to garner enough support. As of February, under 10 percent of Bitcoin nodes signaled in favor, while none of the top 20 mining pools backed the initiative.
Bailey interpreted this not as apathy but as a clear rejection of the proposal at a fundamental level. He labeled the debate a war of information, and claimed some developers sought to steer the network in their own direction.
BitMEX Research warned that the proposed changes could create wallet incompatibilities, disrupt widely used tools, and even put some users’ funds at risk.
Criticism extended further. Some experts noted that strict data caps might still not prevent unwanted transactions. Moreover, there were warnings that implementing the proposal could risk splitting Bitcoin’s network into incompatible versions—echoing splits like Bitcoin Cash and Bitcoin SV in the past.
Old debate flares up again in the community
Arguments over data usage on Bitcoin’s blockchain are nothing new. One side warns that storing excessive data bloats the chain and discourages users from running full nodes. Opponents of restrictions, however, contend that limits could stifle innovation and would be easily circumvented by new techniques.
To demonstrate that large files could still be added under new rules, Martin Habovstiak uploaded a 66-kilobyte image to the blockchain. An October software update last year removed longstanding limits, further fueling the debate. In response, some users shifted to Bitcoin Knots; by February, Knots accounted for roughly a quarter of all Bitcoin nodes.
Network split and transaction load in the spotlight
Although BIP 110 has now been shelved, discussions about the network’s future are far from over. Some still argue that data-heavy features like ordinals and runes could drive up transaction fees and attract increased regulatory scrutiny. Right now, such transactions make up over 67 percent of all Bitcoin transfers.
| Title | Data |
|---|---|
| BIP 110 support | Below 10 percent as of February |
| Top 20 mining pools | No participation |
| Share of Bitcoin Knots | Around a quarter |
| Ordinals and runes transactions | Above 67 percent |
There remains a remote chance that a small group of nodes or miners could attempt to independently activate BIP 110. Such a move could pave the way for two parallel Bitcoin versions: one enforcing stricter data limits, the other maintaining today’s structure.
For now, the risks of major wallet incompatibility or an outright network split are seen as diminished. However, the possibility that the community’s next technical proposal could trigger similar divisions remains a point of concern.
