BIP-110 Fork Coins Risk Replay Attacks on Real BTC Amid Potential Chain Split

A potential Bitcoin chain split looms as miner signaling for BIP-110 nears a crucial threshold, but developer Kevin Loaec warns that selling newly created fork coins could lead to replay attacks that drain real BTC.

BIP-110 aims to restrict non-payment data in Bitcoin transactions, but its hardcoded activation mechanism has sparked concerns about network governance and the potential for a chain split. Currently, miner signaling is below 3%, far from the required 55% threshold needed for normal consensus activation.

Loaec explains that if a user signs a transaction to sell fork coins on the minority branch, the same signature can be submitted to the main Bitcoin network, transferring the equivalent amount of BTC. This creates a risk of replay attacks during the initial split window, which lasts until block 965,664 in early September.

The developer advises non-experts to 'leave the coins alone' and not attempt to navigate the fork independently without technical knowledge. Exchanges and wallet providers are expected to issue guidance in the coming days, and users should follow instructions from their platforms rather than trying to transact on their own.