Bitcoin enters BIP-110 mandatory signaling window

Bitcoin Improvement Proposal 110, known as BIP-110, is currently in the mandatory-signaling phase with miner support at just 2.53%, far below the 55% threshold required for early activation. The proposal, written by developer Dathon Ohm, aims to restrict transaction outputs and increase transaction fees by limiting output script sizes, OP_RETURN outputs, data pushes, and Taproot features.

Nodes enforcing BIP-110 will start rejecting blocks that don't signal support as of block 961,632. While a minority branch has emerged, it quickly lagged behind the dominant chain and has little mining support, making a sustained rival chain unlikely. Supporters argue the restrictions would discourage non-monetary data, while critics, including Michael Saylor and Adam Back, warn the proposal could divide Bitcoin and cause nodes to reject transactions under existing rules. A more extensive fallback has been discussed, but no activation date has been set.