Michael Saylor warns BIP 110 could threaten Bitcoin’s neutrality

Strategy Chairman Michael Saylor has stepped up his opposition to Bitcoin Improvement Proposal 110, arguing that the temporary soft fork could weaken Bitcoin's neutral base rules.

• Saylor says BIP 110 risks Bitcoin neutrality by restricting transactions through new consensus-level protocol rules.
• BIP 110 would temporarily limit data-heavy transactions while leaving outputs created before activation entirely unaffected.
• Miner support remains near zero, while Saylor and Back warn disputed rules could divide Bitcoin.

In an article titled "110 Reasons BIP 110 Is a Bad Idea," Saylor said the network should not use consensus changes to decide which valid transactions deserve access to block space.

In Saylor's article, he argued that Bitcoin cannot reliably determine why transaction data exists. He closed with the line: "Bitcoin does not need guardians of purity. It needs guardians of neutrality."

Saylor challenges consensus restrictions on transaction data

BIP 110, formally called the Reduced Data Temporary Softfork, would apply consensus rules for about one year. The official BIP 110 specification would restrict large data fields, limit OP_RETURN outputs to 83 bytes and cap payloads at 256 bytes. Outputs created before activation would remain exempt.

Supporters say the proposal would reduce arbitrary data storage and lower burdens on node operators. Saylor accepts that some inscriptions, tokens and files may have value or may be linked to harmful activity. However, he questions whether those concerns justify changing Bitcoin's consensus rules to block transaction structures the network currently accepts.

Neutrality becomes the center of the BIP 110 debate

Saylor's argument focuses on the difference between transaction intent and transaction structure. He said the protocol cannot know whether data represents an image, proof, authentication record, contract or another future use. Under his view, miners, node operators and fee markets should handle disputed activity without imposing new base-layer restrictions.

The position follows an earlier clash over the proposal. Saylor and Blockstream co-founder Adam Back opposed BIP 110 and warned that enforcing disputed rules without broad support could create fork risks. Saylor previously called the proposal's consensus precedent " extremely dangerous."

Miner support remains a key test for BIP 110

BIP 110 uses a modified activation process that seeks support from 1,109 of 2,016 mined blocks, equal to 55%. Crypto.news reported on July 12 that miner signaling remained near zero, far below the threshold needed to lock in the proposed rules.

Bitcoin developer Luke Dashjr continues to support the proposal. As reported by crypto.news, Dashjr rejected calls to withdraw BIP 110 as debate grew over Ordinals, Runes and other data-heavy uses. Supporters argue that such activity increases storage demands and moves Bitcoin away from peer-to-peer money.

Saylor calls for slower change at Bitcoin's base layer

Saylor's latest comments fit his broader view that Bitcoin should change cautiously. He has argued that the network's value comes from predictable rules rather than frequent feature changes. His BIP 110 critique says policy tools, pruning, fee pricing and second-layer development offer alternatives for managing resource use without changing consensus.

The dispute also tests how Bitcoin reaches agreement when developers, miners, node operators and users disagree. As reported by crypto.news, Saylor described Bitcoin as a network where capital, node activity and mining power remain in balance. His latest position places neutrality at the center of that debate while BIP 110 moves toward its activation window.

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