Headline: Controversial BIP-110 to curb Ordinals spam draws fire from Bitcoin heavyweights A new Bitcoin Improvement Proposal, BIP-110, is stirring debate across the industry by proposing temporary limits on non-monetary data in transactions — an effort aimed squarely at Ordinals inscriptions that embed images, videos and other artifacts into Bitcoin blocks. What BIP-110 would do - BIP-110 is a soft fork, meaning it’s designed to be backward-compatible with existing Bitcoin software. - It would impose stricter, time-limited caps on non-payment data in transactions to reduce “spam-like” onchain content and free up block space for payments. - Proponents say the change could lower fees and unclog the network for ordinary users while keeping Bitcoin focused on being money. Supporters also note onchain activity from these inscriptions has been “close to negligible” in recent months. Pushback from industry leaders The proposal has drawn sharp criticism from influential figures. Blockstream CEO Adam Back described BIP-110 as an attack on Bitcoin’s credibility, arguing it risks more reputational damage than the inscriptions themselves. “It’s worse as it is an attack on bitcoin’s credibility as a store of value, its security credibility,” Back wrote on X, calling the move a “lynch mob attempt” to force through changes without consensus. He added that the “spam” still fits within block-size limits and suggested existing op_return usage is substantially smaller. Others in the ecosystem have echoed concerns that a heavy-handed technical fix could erode trust in Bitcoin more than ordinal inscriptions ever did, turning a nuisance into a governance crisis. Market backdrop The debate comes as prices show little momentum. Bitcoin has been trading roughly between $67,000 and $70,000, slipping toward the lower end of that range at the time of reporting. Riskier tokens are under pressure: the CoinDesk Memecoin Index (CDMEME) fell about 3% over 24 hours, while ether and BNB were down roughly 1%. Alex Kuptsikevich, senior market analyst at FxPro, warned that weakness in the largest coins could drag smaller tokens lower and described the market as in a “stress zone,” though “not yet” at the final capitulation point. He noted that a true bottom usually requires a peak in loss-taking and exhaustion of selling pressure. Macro signals to watch Traditional markets add another layer of complexity. Short positions against the U.S. dollar are at their highest in more than a decade, and a recent decline in the inflation-adjusted yield on the U.S. 10-year helped give some encouragement to bitcoin bulls. Bottom line BIP-110 has thrust a fresh governance controversy into the spotlight: a technically modest, temporary soft fork aimed at reigning in non-payment data is being framed by critics as a dangerous precedent that could undermine Bitcoin’s neutrality and reputation. Markets are watching closely as the debate unfolds, with traders also monitoring macro factors that could amplify crypto volatility. Read more AI-generated news on: undefined/news

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