Saylor Warns BIP 110 Threatens Bitcoin's Neutral Protocol Rules

Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), has spoken out against BIP 110, a package of seven proposed consensus restrictions aimed at reducing arbitrary data stored through Bitcoin transactions. According to Saylor, these restrictions threaten protocol neutrality and could create a greater threat to Bitcoin than unwanted blockchain data.

The proposal, which reached 'Complete' status under BIP 3 on June 25, would temporarily cap some script sizes, restrict Taproot control blocks, and prevent spending through undefined witness versions. Supporters argue that these measures could reduce node costs and keep block space focused on payments.

Saylor agrees with the goal of protecting node operators, preserving affordable transactions, and discouraging Bitcoin's use as a general storage network. However, he argues that BIP 110 uses seven consensus rules to reject valid, fee-paying activity without measuring the costs those transactions impose.

The executive chairman 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. He favors transaction fees and voluntary relay policies instead of consensus rules that judge transactions by their perceived purpose.