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In his Sunday post, Krüger stated that BIP-110 will not affect Bitcoins monetary characteristics: the total supply of coins (21 million), the proof-of-work algorithm, the Lightning Network, multi-signature wallets, self-custody, and address functionality will remain unchanged.

The main effect is that large arbitrary data used by Ordinals, Runes, and similar protocols will no longer be considered valid, he emphasized.

However, Farside disputed this assessment, noting that BIP-110 will disable several Taproot scripting functions, including the OP_IF opcode used in Miniscript. According to his explanation, after the fork is activated, wallets that support Miniscript will still allow users to create and send funds to addresses based on scripts that are now prohibited. LINE_BREAP L IH Although these transactions will appear valid under the rules of BIP-110 itself, the BTC sent to them will become unspendable, as the necessary spending conditions will no longer be met under the new consensus rules.

Ironically, the latest version of Bitcoin Knotsone of the node implementations that supports BIP-110is capable of generating such incompatible addresses.

Farside went further, noting that BIP-110 will also prohibit the creation of new P2PK outputsa script type widely used in Bitcoins early days and containing over 1.7 million BTC. LINE_BREAP However, spending existing P2PK outputs will still be permitted, although, according to the investment firm, under certain conditions this proposal could lead to a temporary freeze of funds or expose users to the risk of theft, despite protective measures such as preserving old outputs and limiting the validity period to approximately one year. , “detected_source_language”: “EN

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The proposal will take effect either if 55% of miners vote in favor of it during a difficulty adjustment period, or if that does not happen through a mandatory voting process beginning with block No. 961,632, which is expected in August 2026.

The controversy surrounding BIP-110 is part of a broader debate about what is overloading Bitcoins network: Krüger and other proponents argue that inscriptions, BRC-20 tokens, and similar applications have created an unnecessary burden on the network, and that the new proposal is a way to curb such transactions without altering BTCs monetary policy.

However, others, including the hosts of the Block Runner podcast, reject this argument, insisting that the 126.7 million inscriptions on the Bitcoin network amount to only 1.267 BTC in valuea fraction they compare to a coin tossed into the ocean.

In their view, miners who actually benefit from this activityincluding AntPool, ViaBTC, SpiderPool, F2Pool, and Luxor, help offset the reduction in Bitcoins security budget, whereas the BIP-110 proposal itself supports only a small number of miners and nodes.

Network activity remained high throughout this period, despite price fluctuations. The latest data from CryptoQuant showed that utilization rates remained close to record highs even as the price of BTC fell below $60,000, indicating that demand for block spacewhether competitive or not is not going anywhere anytime soon.

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