Overview
- The Reduced Data Temporary Softfork, known as BIP-110, was introduced by developer Dathon Ohm on Dec. 3, 2025 to curb non‑financial data baked into Bitcoin transactions.
- The draft adds seven temporary consensus rules that would, for roughly 52,416 blocks, restrict large scriptPubKeys, witness data over 256 bytes and OP_RETURN outputs larger than 83 bytes and was designed to activate by miner signaling on version bit 4 with a 55% lock‑in threshold.
- Node adoption reached noticeable levels through Bitcoin Knots, which briefly accounted for about 8–15% of listening nodes, but miner signaling never exceeded roughly 0.1–0.7%, making the 55% activation bar unreachable.
- High‑profile critics including Michael Saylor and Adam Back warned the change would set a dangerous precedent by potentially invalidating fee‑paying transactions and concentrating decision‑making power over blockspace.
- The episode has refocused debate about who decides Bitcoin’s rules, why Taproot‑enabled inscriptions like Ordinals and Runes matter for node costs, and what operational headaches exchanges and wallets could face if any minority enforcement were attempted.