Michael Saylor, executive chairman of Strategy, published a 110-point essay over the weekend opposing Bitcoin's proposed BIP-110 soft fork, with a tweet timestamped July 18, 2026. The essay, titled '110 Reasons BIP 110 Is a Bad Idea,' argues that the proposal would set a dangerous precedent by using consensus changes to invalidate currently valid, fee-paying transactions. BIP-110 is a soft fork designed to temporarily restrict non-financial data such as Ordinals and inscriptions on Bitcoin's network for around a year. Saylor contends that while he shares supporters' goals of keeping validation cheap and Bitcoin focused on sound money, the remedy itself poses greater risks than the problem it addresses. The proposal has sparked debate within the Bitcoin community since Ordinals and inscriptions began crowding block space and pushing up fees in 2023.
Saylor's Core Arguments Against BIP-110
Saylor's essay builds on his earlier position that BIP-110's primary danger lies in the precedent it would establish. He wrote that Bitcoin "cannot read intent"—the network cannot distinguish whether bytes represent an image, a proof, a contract, or a future application—so restricting the forms used to store data also blocks legitimate ones. "'Spam' is not a consensus primitive," he argued, stating that disapproval of a use "is not a consensus primitive." Saylor warned that changing consensus to police one contested use creates a template others could reuse, with privacy tools, novel custody, stablecoin settlement, or token systems potentially facing "similar arguments." He described this as "not a prediction" but "a governance risk," noting that while the restrictions would lapse after about a year, "the precedent does not." Saylor branded BIP-110 a "Bitcoin Iatrogenic Proposal"—one where the treatment itself does the damage. He concluded that "Bitcoin does not need guardians of purity. It needs guardians of neutrality."
BIP-110 Activation Mechanics and Current Signaling Status
BIP-110 would tighten Bitcoin's consensus rules to limit techniques used to embed arbitrary data, targeting inscriptions and Ordinals. The proposal lowers the miner-signaling threshold to 55% from the 95% used in earlier soft forks and removes the usual option to let a proposal quietly expire. According to the proposal's monitoring dashboard, signaling has been running below 1%, far short of the 55% threshold. Saylor cautioned that mismatched enforcement "can divide the network." The mandatory signaling window opens in August, with activation targeted around September 1. Supporters, including developer Luke Dashjr and the Bitcoin Knots camp, describe the proposal as a way to fight spam, while critics say it would reject valid transactions and could split the network.
Community Divide and Strategy's Treasury Shift
Saylor's stance aligns him with Blockstream CEO Adam Back, Casa's Jameson Lopp, and Bitcoin advocate Samson Mow, who have also opposed BIP-110, against Dashjr and the Knots camp. The essay arrives as Strategy pivots from its "never sell" stance to "active capital management," pausing Bitcoin purchases to build its cash reserve to $3 billion to fulfill stock dividend payments and debt interest obligations. Strategy CEO Phong Le said last week the firm would not worry about its debt unless Bitcoin crashed to the $8,000–$10,000 range. On Myriad, a prediction market owned by Decrypt's parent company Dastan, users place an 8% chance on Strategy holding over 1 million BTC by the end of the year, down from 17% a week ago.
FAQ
What is BIP-110 and what does it propose to do?
BIP-110 is a proposed Bitcoin soft fork designed to temporarily restrict non-financial data such as Ordinals and inscriptions on Bitcoin's network for around a year. It would tighten consensus rules to limit techniques used to embed arbitrary data, targeting content that has crowded block space and increased fees since 2023.
Why does Michael Saylor oppose BIP-110?
Saylor argues that BIP-110 sets a dangerous precedent by using consensus changes to invalidate currently valid, fee-paying transactions. He contends that Bitcoin cannot distinguish the intent behind data, so restricting certain forms of data storage also blocks legitimate applications. Saylor warns this creates a governance template that could later target privacy tools, custody solutions, or stablecoin settlement, and that while the restrictions would expire after a year, the precedent would remain.
What is the current status of BIP-110's activation process?
BIP-110's mandatory signaling window opens in August, with activation targeted around September 1. The proposal lowers the miner-signaling threshold to 55% from the traditional 95%, but according to the monitoring dashboard, current signaling has been running below 1%, far short of the required threshold.
