Michael Saylor says BIP 110 threatens Bitcoin neutrality

A prominent figure in the cryptocurrency industry has intensified his opposition to a proposed technical change to the Bitcoin network, framing the debate as a fundamental test of the network's core principles. Michael Saylor, Executive Chairman of Strategy, has published a detailed critique of Bitcoin Improvement Proposal 110, arguing it threatens Bitcoin's foundational neutrality by using consensus rules to restrict certain types of transactions.

BIP 110, formally titled the "Reduced Data Temporary Softfork," proposes a one-year change to Bitcoin's consensus rules. The plan would introduce seven temporary restrictions aimed at limiting data-heavy transactions, including capping new output scripts at 34 bytes and limiting OP_RETURN outputs to 83 bytes. The goal, according to supporters, is to reduce the storage and bandwidth burdens on node operators caused by applications like Ordinals inscriptions and BRC-20 tokens, which embed arbitrary data on the blockchain. Outputs created before the rule's activation would be exempt.

In an essay published on July 18 titled "110 Reasons BIP 110 Is a Bad Idea," Saylor argued the proposal represents a dangerous precedent. His central...