
BIP 110 Bitcoin proposes temporary data limits, but Michael Saylor says the soft fork risks neutrality, consensus and a chain split.
Author: Kritika Gupta
High attention and emotional sentiment detected.
21st July 2026 – Michael Saylor sharpened his attack on BIP 110 on Monday. He called the proposed Bitcoin soft fork “monetary purity by fiat” as its deadline nears.
High Signal Summary For A Quick Glance
Matthew R. Kratter #BIP-110
@mattkratter
@saylor Statist suitcoiner (who thinks that Bitcoin needs his pref stock in order to become money) telling sovereign node runners what to do, while showing staggering ignorance of previous UASF dynamics like BIP-148 and the role they played in activating Segwit. Incredibly embarrassing
The impulse to change Bitcoin’s rules merely to prevent others from using Bitcoin in ways you disapprove of is statist and alien to a community rooted in liberty, property rights, free markets, natural law, and Austrian economics. BIP 110 would impose monetary purity by fiat.
12:49 PM·Jul 21, 2026
Efe #BIP-110
@btcefe
@saylor Saylor is lying and trying to gaslight maxis here. > The impulse to change Bitcoin’s rules merely to prevent others from using Bitcoin in ways you disapprove of is statist Given your ties to the Trump family and how much you praise them, no one could be more statist than you https://t.co/gvMsJVdJJs

The impulse to change Bitcoin’s rules merely to prevent others from using Bitcoin in ways you disapprove of is statist and alien to a community rooted in liberty, property rights, free markets, natural law, and Austrian economics. BIP 110 would impose monetary purity by fiat.
10:28 AM·Jul 21, 2026
Knut Svanholm ∞/BIP-110
@knutsvanholm
@saylor Framing BIP-110 as a rule change signals a misunderstanding of Bitcoin's rules. The rules always allowed the network to do things like this. BIP-110 is the Byzantine Generals' Problem being solved in real-time. The rules were always dictated by the community, not the code.
The impulse to change Bitcoin’s rules merely to prevent others from using Bitcoin in ways you disapprove of is statist and alien to a community rooted in liberty, property rights, free markets, natural law, and Austrian economics. BIP 110 would impose monetary purity by fiat.
08:45 AM·Jul 21, 2026
The Strategy chairman posted the statement at 08:32 GMT. It added to a multi-day series of public criticism. Meanwhile, the proposal heads toward a mandatory signaling window in early August.
BIP 110 Bitcoin, also called the Reduced Data Temporary Softfork, proposes seven temporary consensus rules. A pseudonymous developer known as Dathon Ohm wrote it, with credited input from Luke Dashjr.
The rules would apply for roughly one year, or 52,416 blocks. They target new outputs that store large data. Examples include scriptPubKeys over 34 bytes and witness items over 256 bytes.
Other rules reach deeper into Taproot. The proposal would reject witness stacks that carry an annex and control blocks over 257 bytes. It would also invalidate tapscripts that contain OP_SUCCESS or execute OP_IF and OP_NOTIF.
Crucially, the limits only touch new coins created after activation. Existing UTXOs stay permanently exempt, so old transactions keep their validity. The author published the full text on GitHub, where it now carries Complete status.
According to its abstract, the goal is to correct “distorted incentives caused by standardizing support for arbitrary data.” In short, the author wants Bitcoin to “do one thing, and do it well.”
The idea is not new. Dathon Ohm first posted the draft to the bitcoin-dev list in October 2025, initially numbered BIP-444. Editors gave it its current number that December, and signaling began soon after.
Saylor frames the fight as a matter of principle, not spam. He argues that policing how people use Bitcoin betrays the network’s neutrality.
“The impulse to change Bitcoin’s rules merely to prevent others from using Bitcoin in ways you disapprove of is statist,” Saylor wrote. He added that the change “would impose monetary purity by fiat.”
Earlier, on July 11, he made a similar case. “There are 110 things more dangerous to Bitcoin than spam,” he posted. He warned that the fork would invalidate some currently valid, fee-paying transactions.
He is not alone. Blockstream chief Adam Back and analyst Jameson Lopp have also rejected the proposal, according to coverage from CoinDesk. Lopp reportedly called it reckless.
Key milestones in the BIP 110 debate
Ordinals introduce inscriptions and intensify debate over non-monetary data stored on Bitcoin.
Bitcoin developers and node operators clash over data-carrier limits, relay policies and network spam.
Dathon Ohm publishes the initial proposal for temporary consensus-level data restrictions.
The Reduced Data Temporary Softfork formally receives its Bitcoin Improvement Proposal number.
Saylor argues that restricting valid Bitcoin use through consensus rules would impose monetary purity by fiat.
BIP 110 must secure the required 55% signaling threshold to move toward activation.
The proposal will either progress toward activation or fail to activate due to insufficient support.
So far, the numbers look grim for the proposal. BIP 110 uses a modified BIP-9 deployment. It needs 55% of blocks to signal, or 1,109 out of every 2,016.
Instead, miner signaling has stayed near zero. Across periods it has held at roughly 0 to 1.24%. The little support that exists sits in the Ocean mining pool.
Node support also clusters narrowly. Most of it runs on Bitcoin Knots, the stricter node software that Luke Dashjr maintains. Far fewer signals come from the widely used Bitcoin Core.
Because support is so thin, the August window looks unlikely to trigger lock-in. As a result, many observers expect the rules to expire quietly rather than activate.
The debate turns on a key distinction. Consensus rules define what the whole network accepts as valid. Relay policy only decides what one node passes along.
Bitcoin Core and Bitcoin Knots already differ on data policy today. Yet they share the same consensus, so the chain does not split. The proposal would instead lift selected limits to the consensus layer.
That shift is what worries critics. A soft fork makes upgraded nodes reject non-compliant blocks. So a divided hashrate could, in theory, create a temporary chain split. Supporters counter that data use burdens node operators in ways fees do not fully cover.
The rules target techniques that Ordinals and inscriptions made popular. Since 2023, those methods have packed images and tokens into Taproot witness space. To test the limits, developer Peter Todd embedded the full BIP text inside a compliant transaction during list discussion.
Developers have raised further concerns on the Delving Bitcoin forum. Some question whether the rules would even work, given easy workarounds. Others warn about confiscation edge cases and the precedent of filtering by values.
For now, the market has shrugged. Bitcoin traded in a roughly $62,000 to $65,000 range through mid-July. No clear price move ties to Saylor’s post or the wider debate.
The next milestone is the mandatory signaling window. It opens around block 961,632 in early August. If miners stay quiet, lock-in fails and the rules head toward expiry without activation.
The stakes reach beyond this single vote. Analysts compare the clash to the block-size wars and earlier fights over data on Bitcoin. Each time, the network weighed narrow use against open, permissionless access.
Still, the fight has surfaced a deeper split over what Bitcoin is for. Watch the signaling monitor at bip110.org in the coming weeks to see whether opposition or activation wins out. This article is not financial advice.
Our Crypto Talk is committed to unbiased, transparent, and true reporting to the best of our knowledge. This news article aims to provide accurate information in a timely manner. However, we advise the readers to verify facts independently and consult a professional before making any decisions based on the content since our sources could be wrong too. Check our Terms and conditions for more info.