Saylor Warns BIP 110 Threatens Bitcoin's Neutrality

Michael Saylor, executive chairman of Strategy (formerly MicroStrategy), has expressed strong opposition to BIP 110, a proposal aimed at reducing arbitrary data stored through Bitcoin transactions. Saylor warns that the seven temporary consensus restrictions included in the package could create a greater threat to Bitcoin than unwanted blockchain data.

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

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 the costs those transactions impose. 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 fears that the proposal could close reserved technical options that later upgrades could use, including paths associated with BitVM, an experimental design for complex Bitcoin agreements without a trusted intermediary. He emphasizes the importance of preserving protocol neutrality and warns that 'Bitcoin does not need guardians of purity. It needs guardians of neutrality.'