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BIP 110 explained: why Bitcoin could split over a temporary soft fork

Bitcoin is nearing one of its messiest consensus tests in years. BIP 110 aims to curb Ordinals-style data storage for about a year, yet with miner signaling near 2.58% and a 55% threshold, enforcing nodes could start rejecting non-signaling blocks at height 961,632 and drift onto a different chain.

SL
Sara L.
Author
Aug 7, 2026
5 min read
BIP 110 explained: why Bitcoin could split over a temporary soft fork

A Bitcoin user sends a normal payment and never notices the fight happening underneath it. One group says the chain is filling up with junk data, another says Bitcoin is permissionless by design, and BIP 110 turns that argument into code.

What is BIP 110, exactly?

BIP 110 is a proposal called Reduced Data Temporary Softfork, or RDTS. It would change Bitcoin consensus rules for roughly one year so that some ways of stuffing arbitrary data into transactions become harder or invalid.

The targets are familiar by now: Ordinals, inscriptions, BRC-20 and related techniques that use Bitcoin transactions to store more than plain payment information. Supporters call that spam. Critics call it legitimate blockspace demand on .

One detail matters more than the name. BIP 110 appears in the public BIPs repository as a completed proposal, but that does not mean Bitcoin has adopted it. A BIP is a specification, not a decree. If you want the background on how the network itself works, the Bitcoin.org overview and the Wikipedia entry on Bitcoin Improvement Proposals are useful starting points.

Why is BIP 110 hot if support is only 2.58%?

Because the drama is not the current support level, it is the activation design. As of August 7, miner signaling sat around 2.58%, while the proposal asks for a 55% threshold. On paper, that looks dead on arrival.

But BIP 110 does not simply fade away if miners ignore it. Miners can signal with version bit 4, and from block 961,632, nodes running the rule set would begin rejecting blocks that do not signal support. That is the flash point.

In plain English, a soft fork usually works smoothly when most miners enforce the new rule. BIP 110 flirts with the opposite path, nodes enforcing first and miners maybe never following.

How could block 961,632 create two versions of Bitcoin?

Bitcoin normally stays together because miners, nodes and businesses accept the same valid blocks. BIP 110 introduces a moment when some nodes may start saying, “that block is invalid,” while the miners producing most blocks keep saying, “it is fine.”

If enough enforcing nodes reject the majority chain, they can end up on a minority branch. That is not a classic hard fork. It is closer to a coordination failure inside a supposed soft fork.

That is why recent coverage keeps boiling the outcome down to three paths. First, miners surprisingly adopt the rule and the network converges. Second, supporters back down and the proposal fizzles. Third, enforcing nodes follow a different chain because miners refuse to cooperate. The third scenario is the one giving operators a headache.

What are supporters of BIP 110 trying to stop?

Their core complaint is simple: Bitcoin blockspace should prioritize monetary transfers, not arbitrary file storage. They argue that inscriptions and BRC-20 style usage raise fees, bloat the chain and crowd out the kind of payments Bitcoin was built for.

BIP 110 tries to make those uses less attractive by narrowing what transaction data patterns remain valid. Supporters see that as housekeeping. Opponents see it as a policy preference dressed up as consensus.

The split here is philosophical as much as technical. Bitcoin has never had a content moderator. If someone pays the fee and follows the rules, should the network care what the bytes represent?

BIP 110 is controversial because it does not only filter a class of transactions. It also tests whether a minority of enforcing nodes can pressure miners by threatening to reject the chain most hash power is building.

Why does the activation method worry even people who dislike spam?

Because many Bitcoin veterans can live with stricter rules, but not with messy activation. A consensus system survives by making chain splits rare, expensive and socially obvious.

BIP 110 reverses the usual order. Instead of broad miner buy-in first, then enforcement, it risks a date where enforcing nodes begin refusing non-signaling blocks despite weak support. That can turn a narrow anti-spam proposal into a test of political power inside Bitcoin.

Luke Dashjr's name appears in discussions because of his long history arguing against data-heavy uses of Bitcoin and his ties to OCEAN. The author is listed under the pseudonym Dathon Ohm, and the formal text is available in the BIP 110 specification. If you want to compare activation mechanics, BIP 8 is also worth reading.

What should you actually watch if you hold Bitcoin?

If you hold Bitcoin through your own wallet, the first thing to watch is not price. Watch infrastructure behavior. Does your wallet provider, node software, mining pool, or block explorer state whether it will enforce BIP 110 or ignore it?

If you buy or sell through a service, keep an eye on its status pages and support notes. A platform like AhoraCrypto's Bitcoin page, its help center, and general security guidance are the kinds of pages worth checking whenever a consensus dispute heats up, because delays and confirmation policies matter more than hot takes.

Three practical checks matter most

  • Check whether your transaction counterparties recognize the same chain you do.
  • Wait for stronger confirmation standards if block production looks contested.
  • Be cautious with wallets, explorers or services that have not publicly explained their policy.

The useful mental model is boring, and that is good. BIP 110 is not yet “Bitcoin changed forever.” It is a reminder that Bitcoin governance still happens through rough coordination among miners, node operators, developers and users, and rough coordination gets messy fast.

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