Saylor Slams BIP 110 as Threat to Bitcoin's Neutral Protocol

Michael Saylor, executive chairman of Strategy, formerly MicroStrategy, has spoken out against BIP 110, a proposal to impose seven temporary consensus restrictions on Bitcoin (BTC) transactions.

The Reduced Data Temporary Softfork aims to reduce arbitrary data stored through Bitcoin transactions by capping some script sizes, restricting Taproot control blocks, and preventing spending through undefined witness versions.

Saylor agrees with the goal of protecting node operators and preserving affordable transactions but argues that BIP 110 uses consensus rules to reject valid, fee-paying activity without measuring its costs. He also objects to bundling all seven restrictions into one package and using a 55% miner-signaling threshold, which he believes is too low for a disputed change.

Saylor warns that the proposal could create a greater threat to Bitcoin than unwanted blockchain data and prefers market fees and voluntary relay policies instead of consensus rules that judge transactions by their perceived purpose. He emphasizes the importance of protocol neutrality and cautions against 'guardians of purity' who might introduce technical limits without weakening the network's neutral settlement rules.