Bitcoin BIP-110 Signaling Falls Short of Activation Threshold
The Bitcoin Improvement Proposal (BIP) 110, designed to curb non-financial data on the blockchain, has entered mandatory signaling at block 961,632 with only 2.53% miner support.
This is far short of the required 55% threshold needed for activation, and critics warn that it could split Bitcoin and cause valid transactions to be rejected.
The proposal, also known as the 'Reduced Data Temporary Softfork', would impose restrictions on output scripts and certain Taproot features for roughly one year to discourage inscriptions and reduce storage costs for node operators.
Supporters argue that this is necessary to limit non-monetary data stored on the blockchain, but opponents such as Michael Saylor and Adam Back warn that it could have unintended consequences.