Bitcoin’s BIP‑110 proposal, which sought to block non‑financial data like Ordinals and Runes from being inscribed on the blockchain, collapsed with less than 1% miner support ahead of its July 4, 2026 activation deadline.
Michael Saylor and David Bailey hailed the failure as proof of Bitcoin’s resilience against what they described as a “hostile takeover attempt.”
What is BIP-110?
BIP‑110 was introduced by pseudonymous developer Dathon Ohm as a soft fork proposal to restrict arbitrary data storage on Bitcoin transactions.
Specifically, it aimed to block users from attaching large amounts of non‑financial data—such as images, videos, or text inscriptions—via protocols like Ordinals and Runes.
Supporters argued that these inscriptions clogged the network, raised transaction fees, and undermined Bitcoin’s core function as peer‑to‑peer money.
Critics countered that the proposal amounted to censorship, risked breaking wallets, and could ban over 1.7 million BTC from transfers.
BIP-110’s activation threshold required 55% of blocks signaling support within a 2,016‑block period.
By July 4, only 10 blocks had signaled, representing less than 1% of total hashrate. This negligible support effectively killed the proposal before its enforcement window in August.
The data indicates that miners overwhelmingly rejected the change, leaving Bitcoin’s transaction formats intact and demonstrating the difficulty of altering consensus rules without broad alignment.
A Favorable Market Response
Michael Saylor, Executive Chairman of MicroStrategy, framed the failure of BIP‑110 as evidence of Bitcoin’s governance strength.
He described “hard consensus” as Bitcoin’s immune system, ensuring that bad ideas fail before they can damage the network.
Saylor emphasized that protocol changes must earn overwhelming alignment, otherwise they risk becoming “iatrogenic”—causing harm through attempted cures.
His comments highlight the importance of Bitcoin’s decentralized governance model, where nodes, miners, and holders each play distinct roles in maintaining policy, block construction, and capital allocation.
Market sentiment following the collapse of BIP‑110 has been broadly positive among Bitcoin supporters.
David Bailey, CEO of Nakamoto and organizer of the Bitcoin Conference, called the proposal a “hostile takeover attempt” and celebrated its failure as “incredibly bullish” for Bitcoin.
Critics of the proposal, including Blockstream CEO Adam Back, reiterated that Bitcoin cannot be censored, likening it to the internet’s resistance to control.
The rejection reinforced confidence in Bitcoin’s resilience and its ability to resist centralizing forces.
More Reason to Watch What Will Unfold
Observers should monitor several key factors:
- User‑activated soft fork window in August 2026: Although miner support collapsed, proponents may attempt activation through user signaling. If pursued, this could risk chain splits or further governance disputes.
- Transaction fee dynamics: With Ordinals and Runes continuing, fees may remain elevated during periods of inscription activity. Historical trends show that fee spikes often accompany surges in non‑financial data inscriptions.
- Developer community cohesion: The controversy has already led to developer departures from Bitcoin Core. Sustained discord could affect protocol development, though history suggests Bitcoin’s governance model absorbs shocks and stabilizes over time.
- Market confidence: Historically, failed takeover attempts or contentious forks (e.g., SegWit2x in 2017) have reinforced Bitcoin’s credibility, often followed by price recoveries. Traders should watch whether similar bullish sentiment emerges in the weeks ahead.
