Bitcoin’s BIP-110 moves forward despite low miner support

The update

Bitcoin Improvement Proposal 110 entered its mandatory-signaling phase at block 961,632. Nodes enforcing BIP-110 began rejecting blocks that did not set version bit 4, while ordinary nodes continued accepting both signaling and non-signaling blocks. Miners signaled support in only 51 of the preceding 2,016 blocks, or 2.53%, falling well below the 55% threshold required for early activation.

Why it matters

BIP-110 proposes temporary restrictions on blockchain data, including limits on output scripts and OP_RETURN outputs. Supporters argue these limits would discourage non-monetary data that increase storage and bandwidth costs. Critics, including Michael Saylor and Adam Back, warn the proposal could divide the network. The low signaling rate raises questions about whether enforcing nodes can sustain the change without broader miner backing.

What to watch

Observers are watching for the emergence of a rival chain. With limited mining support, a BIP-110 branch could advance slowly or stop producing blocks altogether. The deployment milestone tests whether supporters can advance a contentious consensus change without broad miner participation.

Sources

• cointelegraph.com — deployment details, signaling statistics, and technical mechanics of mandatory signaling
• coindesk.com — context on near-zero miner support, user-activated soft fork mechanics, and potential outcomes