Strategy Inc. (NASDAQ:MSTR) founder Michael Saylor made a case on Sunday against the BIP-110 software upgrade for Bitcoin (CRYPTO: BTC), arguing that the “proposed cure is more dangerous than the condition.”
What Is The Upgrade About
The upgrade is aimed at temporarily restricting the use of Bitcoin for storing large amounts of “non-monetary data,” including Ordinal inscriptions, and refocusing priorities on improving Bitcoin as “money.”
Supporters of BIP-110 argue that this “spam” bloats the blockchain and creates “significant unnecessary burdens” on node operators.
BIP-110 proposes a temporary soft fork that introduces seven restrictions on transactions containing large amounts of arbitrary data. The proposal is heading toward a key activation window in early August 2026.
However, Saylor remained unconvinced and aired his apprehensions in an X essay titled “110 Reasons BIP 110 Is a Bad Idea.”
Saylor’s Arguments
Saylor argued that the ability of a soft fork like BIP-110 to render some blocks invalid to upgraded nodes should be used only for “clear, severe, and “broadly understood” failures.
He contended that BIP-110 does not rectify any known critical bugs or established consensus failures such as inflation, signature validation, or double-spending. Rather, it tackles a “contested externality and use case,” for which he believes the burden of proof should be exceptionally high.
“Bitcoin’s strength is not that everyone agrees on every use. Its strength is that disagreement is contained by neutral rules and hard consensus. Bitcoin should remain conservative at the base layer. For me, that means rejecting BIP 110,” the Bitcoin bull said.
Support And Opposition
Saylor’s BIP-110 critique met resistance from veteran Bitcoin trader Fred Krueger, who published a counter-essay outlining why it was a “good idea.”
Jameson Lopp, Bitcoin security expert and Casa co-founder, stated it’s ok “to stop respecting BIP-110 supporters” due to their perceived poor judgment and misplaced priorities on protocol changes.
Price Action: At the time of writing, BTC was exchanging hands at $64,785.18, up 0.26% over the last 24 hours, according to data from Benzinga Pro.
Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.
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