Bitcoin BIP-110 Signaling Fails to Gain Traction
Bitcoin has entered mandatory signaling for BIP-110, a soft fork designed to curb non-financial data on the blockchain. However, miner support stands at just 2.53%, far short of the 55% threshold required for activation.
The signaling phase began at block 961,632, and nodes enforcing BIP-110 started rejecting blocks that didn't signal with version bit 4. This led to a minority chain splitting off from the main network, but it quickly fell behind due to lack of meaningful hash power.
BIP-110 proposes restrictions on output scripts and Taproot features for about one year, aiming to discourage inscriptions and reduce storage costs for node operators. Critics, including Michael Saylor and Adam Back, warn that this could split Bitcoin and cause valid transactions to be rejected.