BIP-110 Soft Fork Approaching Activation; Miners and Exchanges Warned of Chain Fork Risks

ChainCatcher report, according to Bitcoin Magazine, BIP-110 soft fork is approaching its critical activation phase. The proposal will enter the mandatory signaling phase around August 9, corresponding to block height 961,632, with an expected lock-in at block 963,648 by the end of August and activation of new transaction rules at block 965,664 in early September. BIP-110 employs a 55% signaling threshold, and its restrictions will be enforced for 52,416 blocks (approximately one year). BIP-110 primarily limits transaction features such as large data pushes, excessively large output scripts, undefined witness versions, and Taproot annexes, but exempts UTXOs created prior to activation, maintaining compatibility with standard monetary use cases. Analysis indicates that most businesses need not take action—enterprises using Bitcoin as a store of value or processing transactions through third-party payment providers are largely unaffected. Businesses operating their own full nodes may choose independently whether to switch to a BIP-110-compliant node. The primary risk to monitor is a chain split. If a split occurs, miners should either mine on the expected winning branch or pause until clarity emerges; exchanges and custodians should increase confirmation requirements, monitor both chains, and delay final settlement to mitigate risks of double-spending and false confirmations. If no split occurs, no special actions are required.