Developer warns BIP-110 fork could expose Bitcoin holders to replay theft

News Editor

2026-08-08 02:33:02

Bitcoin developer Kevin Loaec warned on Aug. 8 that if a Bitcoin fork tied to the disputed BIP-110 proposal emerges this weekend, holders trying to sell coins on the forked chain could accidentally lose real BTC on the original network. The risk comes from the lack of replay protection in the early stage of a chain split, which could allow a transaction signed on one chain to be copied and executed on the other. According to the report, if Bitcoin splits into two chains, users may initially hold matching BTC balances on both. That may tempt some traders to sell what looks like “free” fork coins. But without proper separation of assets, the signed transaction used to move those fork coins could also be valid on the main Bitcoin chain, letting the buyer receive the same amount of real BTC. Loaec said the safest option for holders who do not know how to securely split assets across both chains is to do nothing for now. He added that untouched BTC is not exposed to replay attacks because no signed transaction exists to copy. BIP-110 currently has about 2.6% miner signaling support, far below the level needed for activation, leaving uncertainty over whether a fork will actually take shape.

BlockBeats reported on Aug. 8 that Bitcoin developer Kevin Loaec has warned of a potential risk to holders if a Bitcoin fork linked to the disputed BIP-110 proposal materializes this weekend. In that scenario, people who try to sell tokens on the forked chain could end up losing real BTC on the original Bitcoin network.

Replay risk if two Bitcoin chains appear

The report said that if Bitcoin splits into two chains, a user’s BTC balance could initially exist on both. That may lead some traders to sell fork-chain tokens that appear to have been obtained for free. The problem is that the two chains may lack replay protection in the early stage.

Without replay protection, a transaction signed to sell coins on the forked chain could be copied onto the original Bitcoin network. If that happens, the buyer could receive the same amount of real BTC as well.

Loaec said holders who do not understand how to safely split assets between the two chains should avoid taking action for now. BTC that has not been moved would not be affected by replay attacks, he said, because there is no signed transaction available to copy.

Why BIP-110 could create a competing chain

The risk is tied to BIP-110, a proposal designed to restrict non-payment data such as images and text in Bitcoin transactions. Because the proposal has not received enough miner support, software backing BIP-110 could begin rejecting blocks that do not follow its rules once Bitcoin reaches block height 961,632, which is expected this weekend. That could create a chain that competes with the main network.

BIP-110 miner signaling support is currently about 2.6%, well below the level required for activation, so it remains unclear whether a fork will actually form. Still, if a small group of miners continues to maintain a BIP-110 chain, the market could end up with two separate transaction histories.

What holders are being told

The report added that during the early phase of a fork, users would need to actively separate assets across the two chains. Without replay protection, trading forked coins could unintentionally transfer real BTC. Transaction restrictions related to BIP-110 are expected to formally take effect around early September.

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

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