As we explained in our April article :What the Beep is BIP-110?", BIP-110 is a proposed temporary soft fork designed to limit the amount of arbitrary data that can be added to Bitcoin transactions for about one year.
It aims to reduce spam (such as ordinals inscriptions and large data pushes) and refocus Bitcoin on its core use as money.
The changes would cap most data pushes at 256 bytes, limit new outputs to 34 bytes (with a small exception for OP_RETURN), and restrict certain Taproot features. After roughly one year the rules would automatically expire.
We are now just weeks away from a key activation window in August 2026. Here’s what’s happening and what it could mean for everyday Bitcoin users.
Current Status (mid-July 2026)
Miner support for BIP-110 remains very low — under 1–2% of total hashrate in recent periods, with most signaling coming from smaller pools like Ocean. No major mining pools have joined in.
Node support has grown among users running Bitcoin Knots (the main client with the BIP-110 patch), but it is still a minority of the network.
Because of these low numbers, there is no early lock-in yet.
What is Coming in August
BIP-110 uses an unusual activation method with a low 55% miner-signaling threshold (most soft forks aim for 95%). If that threshold isn’t reached naturally, a mandatory signalling window begins around early-to-mid August 2026 (block 961632, expected around 7–8 August).
During this window, nodes enforcing BIP-110 rules would reject blocks that don’t signal support. This creates a real (though temporary) risk of a chain split — two versions of Bitcoin running at the same time for a period.
This situation is different from normal Bitcoin upgrades because the low threshold and minority enforcement make a split more likely than with past soft forks.
Comparison to the 2017 Blocksize Wars
Bitcoin has experienced contentious upgrades before. In 2017, during the Blocksize Wars, disagreements over how to scale Bitcoin led to a permanent chain split and the creation of Bitcoin Cash.
BIP-110 carries some similar risks of short-term division and uncertainty. However, there are important differences:
- It is designed to be temporary (expires after ~1 year).
- It has far less overall support than the 2017 proposals.
- Most analysts expect the chain with the majority of hashrate to remain the dominant one.
Still, history shows that even “soft” forks can create temporary chaos when consensus is low.
Heated Debate on Twitter/X and in the Community
The proposal has sparked major and heated arguments across Bitcoin Twitter/X and developer forums.
Proponents argue it protects node operators from unsustainable data growth and helps keep Bitcoin focused on money.
Critics call the activation method rushed, point to the very low consensus, and warn that it sets a risky precedent for forcing changes with minority support.
Prominent voices including Michael Saylor and others have publicly opposed it. The discussion remains lively and divided.
What Exchanges Might Do
To date, no major exchanges have announced plans regarding BIP-110.
In past forks (such as 2017), some paused deposits and withdrawals for a few days around the event, while others waited or made statements afterward.
Users can expect clearer comments from exchanges in late July or early August as the date approaches.
What Bitaroo Will Do
We are closely monitoring miner signalling, node adoption, and community developments leading into August.
If a chain split appears likely, we will communicate any temporary measures (such as pausing bitcoin deposits or withdrawals) with as much advance notice as possible, ideally several days ahead where circumstances allow.
Updates will be published on our Status Page, across our social channels, and via notifications in the Bitaroo app and platform.
Our top priority is always protecting user funds and giving you clear, timely information.
In the meantime, we continue to strongly recommend self-custody for most users, or using the Bitaroo Vault if you prefer to keep your bitcoin in our custody with additional security features.
How to Prepare – Practical Steps for Bitcoiners
The good news is that Bitcoin is resilient and has survived contentious periods before. Your coins remain safe either way. Here’s how to reduce any hassle:
- Self-custody is considered the best option for most people. We strongly support moving your bitcoin to a self-hosted wallet you control before early August if you are comfortable doing so. This gives you full ownership and avoids any potential exchange-side pauses.
- Avoid sending transactions during the activation window if you can. The period around early-to-mid August may bring short-term uncertainty (possible higher fees, delays, or confusion about which chain a transaction lands on). If your transaction is not urgent, it is safer to wait until things stabilise.
- Monitor announcements from Bitaroo and reliable Bitcoin news sources.
- If you are technically inclined, running your own node lets you choose which rules to follow
Bottom Line
BIP-110 is one of the more contentious proposals Bitcoin has seen in recent years because of its low support and activation mechanics.
A temporary chain split is possible, but the network has strong incentives to resolve splits quickly, and the majority hashrate is expected to determine the main chain.
At Bitaroo we believe the best preparation is simple: move to self-custody where possible, use the Bitaroo Vault if opting for a custodial option, and avoid unnecessary transactions during the uncertain window.
We will continue monitoring developments and will keep you updated. If you have questions about your account, self-custody options, or anything else, our support team is here to help.
Useful links
- Our earlier explainer: What the Beep is BIP-110?
- Live BIP-110 signalling monitor: bip110.org/monitor
Stay safe, keep calm and stack sats responsibly.
