Saylor Warns BIP 110 Threatens Bitcoin Neutrality

Bitcoin developers are currently considering BIP 110, a proposal that would impose seven temporary consensus restrictions to reduce arbitrary data stored through transactions. However, Michael Saylor, executive chairman of Strategy, formerly MicroStrategy, has urged developers to reject the proposal, warning that it could create a greater threat to Bitcoin than unwanted blockchain data.

The Reduced Data Temporary Softfork, as BIP 110 is also known, would temporarily cap some script sizes, restrict Taproot control blocks, and prevent spending through undefined witness versions. Its supporters argue that these measures could reduce node costs and keep block space focused on payments.

Saylor agrees with the broader goal of protecting node operators and preserving affordable transactions but argues that BIP 110 uses seven consensus rules to reject valid, fee-paying activity without measuring the costs those transactions impose. He also objects to bundling all seven restrictions into one package and using a 55% miner-signaling threshold, below the 95% level associated with BIP 9 deployments.