Bitcoin Network Divided Over Proposed Rule Change BIP-110

The Bitcoin network is divided over a proposed rule change called BIP-110, which would limit non-monetary data storage on the blockchain for one year. The main target of this proposal are Ordinals inscriptions, BRC-20 tokens, and similar data that critics call spam.

The key mechanics of BIP-110 include capping new transaction outputs at 34 bytes, except OP_RETURN outputs which can reach 83 bytes, and limiting data pushes and witness elements to 256 bytes. Certain Taproot annexes, large control blocks, and inscription-related opcodes also face temporary restrictions.

Michael Saylor, founder of Strategy, opposes BIP-110, arguing that it would shrink transaction freedom and weaken blockspace scarcity. He compares Bitcoin's consensus rules to a constitution and suggests that making changes now could hurt long-term protection for miners.