BIP 110 Splits Bitcoin Debate as 67% of Transactions Could Face New Limits Before August

BIP 110 Splits Bitcoin Debate as 67% of Transactions Could Face New Limits Before August

N
News Editor 01
2026-07-23 11:35:15
Debate over BIP 110 is intensifying in Bitcoin. Source data shows more than 67% of transactions are tied to Ordinals and Runes, while wallet compatibility risks are drawing attention ahead of a possible August activation.
BitcoinBIP110OrdinalsRuneswallet-security

BIP 110 has pushed an old Bitcoin argument back to the center of the network debate. Supporters want Bitcoin to stay focused on payments and restrict transaction types they see as unrelated to that mission. Others argue that Ordinals, Runes, and similar on-chain activity are still valid uses of block space. The dispute now reaches beyond ideology, touching transaction policy, node behavior, and wallet safety as August gets closer.

Ordinals and Runes still account for most traffic

The source says that more than 67% of Bitcoin transactions are still linked to Ordinals and Runes. Daily transaction count is above 621,000, while daily fee revenue is around $2.3 million. At the same time, over 91% of Bitcoin blocks are full, leaving little spare capacity on the network. Those figures explain why the argument has become harder to ignore.

Even with that level of congestion, the mempool has not seen major stoppages. Token minting and Ordinals-like record creation continue, despite weaker conditions in the NFT market. Some users view this flow as legitimate network demand and part of Bitcoin’s fee economy. Others see it as avoidable pressure that crowds out payment use.

Adam Back repeats his opposition to spam-like transactions

Blockstream founder Adam Back has restated his position that Bitcoin should not carry transactions considered spam on the network. Blockstream remains a major company in Bitcoin infrastructure and sidechain development, and Back is still one of the most visible voices in the ecosystem. His comments quickly fed into the BIP 110 discussion.

The case from BIP 110 supporters is straightforward: Bitcoin should prioritize payment transactions, not make room for Ordinals, Runes, or NFT-style activity. This is not a new split inside the community. What has changed is the pressure created by full blocks and sustained transaction volume.

Support among miners and nodes remains limited

Backers of the proposal are hoping enough nodes will adopt the update, but the source points to limited support so far from miners and node operators. With the August activation date approaching, attention is shifting to whether Bitcoin participants will enforce the same rules at all.

One scenario described in the source is that miners keep producing standard blocks, while BIP 110 supporters accept only blocks that follow tighter rules. In practice, that could leave Bitcoin split into two paths: one chain that continues to allow Ordinals-related traffic and another with stricter limits. The comparison to the old Bitcoin Cash hard fork is hard to avoid. If broader consensus never arrives, BIP 110 could remain a fringe effort or slowly lose momentum in block production.

Wallet users may face the first short-term problems

The most immediate risk may fall on end users rather than miners. According to the source, some Bitcoin wallets could malfunction around the activation window. Bitcoin Knots, which is included in the BIP 110 package, may run into issues that could leave some coins temporarily unspendable.

Bitcoin Knots is an alternative Bitcoin client that validates network rules through its own nodes and may apply policy differences compared with Bitcoin Core. As the critical block height in early August gets closer, users are being urged to take extra care when sending funds and checking wallet compatibility. For now, the practical concern is simple: which clients keep working cleanly if policy enforcement starts to diverge.

This article was originally published by Bit.Fan. For more cryptocurrency news and market insights, visit www.bit.fan.
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