Nakamoto, a Bitcoin treasury company, Chairman David Bailey stated on X on July 4 that the BIP-110 proposal offensive, which he described as a "hostile takeover attempt," has failed, which is extremely bullish for Bitcoin. According to on-chain data, among the 9,066 blocks since May 1, only 38 have signaled support for BIP-110, representing only about 0.31% of hashrate.
BIP-110 Proposal Design: Restrict Arbitrary Data Storage, 55% Hashrate Threshold, and August Mandatory Signaling Period
According to the proposal, the core specifications of BIP-110 are as follows:
Main Goal: Restrict non-financial arbitrary data storage on the Bitcoin blockchain, targeting uses of Bitcoin as a data layer such as Ordinals inscriptions
Activation Mechanism: UASF (User-Activated Soft Fork), triggered by miner signaling
Hashrate Threshold: 55%, Bailey stated this is an "unprecedentedly high activation threshold"
Original Timeline: August 7-15, 2026 (around block height 961,632) enters mandatory signaling period; if 55% miner hashrate signaling is achieved early, activation can be locked in
On-Chain Hashrate Data: 38 Signals in 9,066 Blocks, 0.31% Hashrate Support
According to on-chain data, from May 1, 2026 to July 4, a total of 9,066 Bitcoin blocks were produced, of which only 38 signaled support for BIP-110, a signaling block ratio of approximately 0.42%, with hashrate-based support only about 0.31%.
The first BIP-110 signaling block was mined by Ocean pool in March 2026, making it the only major mining pool to publicly support it so far; no other major mining pool has followed suit. Bailey stated that even after years of information warfare mobilization, the initiators have not yet secured 1% of hashrate.
Ordinals Technical Bypass: lifofifoX's July 2 Update and GitHub Verification
On July 2, 2026, programmer lifofifoX released an update to the Ordinals protocol on GitHub, bypassing the new proposal's data size limit by splitting large files into multiple fragments below the BIP-110 limit; Ordinals creator Casey Rodarmor verified the validity of this update on GitHub. The emergence of this technical path means that even if BIP-110 is formally activated, Ordinals could still potentially bypass it in practice, fundamentally undermining the technical feasibility of BIP-110's restriction on data writing.
Bailey's Governance Observations: Fragile Bitcoin Core Coordination Mechanism, AI Information Warfare Challenge
Bailey admitted in his statement that this offensive and defensive battle exposed multiple governance vulnerabilities: Bitcoin Core's coordination mechanism relies too heavily on Twitter and needs a better solution; this is the first large-scale encounter in Bitcoin history with "an information war fueled by AI garbage content". He stated that such content is "extremely difficult to refute; a low-cost prompt often takes a hundred times longer to clarify," and admitted "I don't know how to deal with it in the long run."
Bailey estimated that this conflict, which has raged for years, has consumed over a million hours of the community's time, energy, and cohesion. Regarding Luke Dashjr's stance, the latter had publicly stated that "if BIP-110 fails, Bitcoin will also fail," and warned that allowing Bitcoin to become a data layer would reduce it to "an unregulated central bank digital currency (CBDC)." Bailey did not directly respond to this but instead directed the governance focus towards the necessity of industry participation.
Frequently Asked Questions
What is BIP-110 and why is the 55% hashrate threshold a concern?
BIP-110 is a Bitcoin soft fork proposal that seeks to restrict non-financial arbitrary data storage on the blockchain, advancing via UASF mechanism, with a 55% hashrate threshold as activation condition. Bailey stated this threshold is an "unprecedentedly high threshold"; in comparison, the 2017 SegWit UASF (BIP148) had a different threshold design. As of July 2026, actual signaling hashrate is only about 0.31%, far from the 55% target.
How does the Ordinals protocol bypass BIP-110's restrictions?
According to the July 2 GitHub update, programmer lifofifoX developed a technical solution to split large files into multiple small fragments below the BIP-110 limit; Ordinals creator Casey Rodarmor verified this update as valid, meaning that even if BIP-110 is formally activated, the technical blocking effect is questionable.
What's next for BIP-110? Will the August mandatory signaling period still occur?
BIP-110 was originally scheduled to enter the mandatory signaling period from August 7 to 15, 2026, but with the current hashrate support at 0.31%, it is extremely far from the 55% activation threshold. Bailey stated in his statement that if supporters choose to fork away, their credibility will be self-zeroed; the specific follow-up depends on official announcements from the BIP-110 proposers and the Bitcoin Core community.
