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Saylor and Back reject Bitcoin fork BIP-110, citing network credibility

Tuesday, July 14, 2026 · from 1 podcast
  • Protocol fork BIP-110 aims to purge Ordinals data from Bitcoin blocks.
  • Bitcoin heavyweights argue a fork ruins network credibility and violates permissionless ethos.
  • Market consensus holds, as miner support for the change remains at zero percent.

A new civil war is brewing over what belongs in a Bitcoin block. BIP-110 proposes a purge of 'spam' like Ordinals and inscriptions, a hard fork to keep the chain lean for monetary transactions alone.

Michael Saylor and Adam Back reject the fork outright. According to analysis on Bitcoin And | Bitcoin & Economic News, they argue such a move would ruin Bitcoin's network credibility and violate its permissionless ethos. They view the proposal as a quest to police how others use the network, a fundamental departure from its design.

"They view the proposal as a quest to police how others use the network."

- Bitcoin And | Bitcoin & Economic News

The debate has generated social media noise, but the market remains silent. Miner support for the change sits at zero percent as the August deadline for the proposed 'user-activated soft fork' approaches. The consensus mechanism appears resistant to the forced change, upholding the principle that Bitcoin's rules are set by code, not by committee.

The resistance from core figures signals that, for now, Bitcoin's blocks will remain a canvas for both money and data, governed by the same immutable rules.

Source Intelligence

- Deep dive into what was said in the episodes

No. Forking. Consensus. | Bitcoin NewsJul 13

  • Michael Saylor and Adam Back oppose BIP-110, arguing the fork risks invalidating legitimate transactions and undermines Bitcoin's permissionless ethos. Saylor called spam less dangerous than the fork itself.
  • BIP-110 is a proposal to temporarily cap data transactions on Bitcoin to limit Ordinals inscriptions for one year. It requires 55% miner support to activate, but current signaling stands at zero.
  • David Bennett argues BIP-110 is an attempt to police transactions and a waste of time, noting the Ordinals spam issue is real but censorship is worse. He compares the debate to the failed 2017 block size wars.
  • Strategy sold $467M worth of MSTR shares but did not buy or sell Bitcoin. The firm's USD cash reserve increased by $450M to $3B, while its Bitcoin holdings remained at 843,775 BTC.
  • Strategy's Bitcoin holdings represent about 4% of the total supply, purchased at an average cost of $75,476 per coin. The current paper loss on that position is roughly $10.7B.
  • David Bennett notes Ordinals inscriptions have dropped to under 10,000 per day recently, down from a peak of over 400,000 in August 2023.
  • The Bank of Thailand is auditing high-volume USDT transactions to crack down on money laundering and gray money. The move expands bank compliance duties to cash networks, gold trading, and stablecoin flows.
  • David Bennett criticizes central banks like Thailand's for making de facto laws, arguing unelected bodies shouldn't wield that power. He sees global financial control efforts as a sign systems are breaking.
  • Chinese prosecutors proposed treating use of crypto mixers or privacy coins as presumptive evidence of money laundering intent. Over 3,000 people were charged with crypto-related money laundering in China in 2024.
  • SBI VC Trade in Japan launched a lending service for its yen stablecoin (JPY SC) offering a 3% annualized yield. David Bennett warns this smells like a scam, stressing the critical question is what generates the yield.
  • David Bennett promotes OshiGood's huddle butter, a pecan-based spread, as a Circle P product where Bitcoiners can support each other in a circular economy outside the fiat system.