Michael Saylor Opposes BIP 110, Calls Soft Fork a Threat to Bitcoin's Neutral Rules

Odaily Planet Daily report: Michael Saylor, founder of Strategy, published a lengthy article on July 18 listing 100 reasons against BIP 110. He stated that the proposal would restrict a category of controversial but currently valid transactions through Bitcoin’s consensus rules, constituting governance interference in use cases. BIP 110, titled “Reduced Data Temporary Softfork,” was marked as Complete on GitHub on June 25, 2026. The proposal plans to run for approximately one year and introduces seven new consensus restrictions, including an 83-byte limit on OP_RETURN outputs, a 256-byte cap on certain payloads and witness elements, and limitations on specific Taproot-related structures. Michael Saylor noted that BIP 110 employs a 55% miner signaling threshold, which is lower than the 95% threshold in the standard BIP 9 process, and eliminates the conventional timeout and FAILED states. He argued that using a lower threshold for contentious rule changes increases the probability of chain splits and could impact miner fee income and long-term network security. He emphasized that existing Bitcoin relay and mining strategy tools already allow node operators and miners to restrict unwanted transaction types without altering global consensus rules. Michael Saylor also asserted that Bitcoin’s base layer should remain conservative and oppose using consensus soft forks to regulate controversial use cases.