Bitcoin reached block 961,632 this week, triggering the mandatory signaling period for BIP-110, a controversial proposal designed to temporarily curb non-financial data from being embedded on the Bitcoin network.
The proposal entered its signaling phase at approximately 19:35 UTC on Saturday. Miner support has seldom exceeded 2.5% — a fraction of the 55% threshold required for standard activation.
A User-Activated Approach
BIP-110's supporters are not relying on miners. Instead, they are pushing the proposal as a user-activated soft fork (UASF), meaning it would depend on node operators to enforce the rule change rather than hash power.
Under a UASF, users update their node software to reject any block from miners that fails to signal support for BIP-110. The strategy attempts to coerce miners into compliance — or cut them off entirely from the enforcing portion of the network.
Proponents point to historic precedent in the 2017 activation of SegWit via BIP-148, which succeeded through user activation despite insufficient initial miner backing.
Prominent Opposition
The proposal has drawn criticism from some of Bitcoin's most influential voices. Strategy chairman Michael Saylor and Blockstream CEO Adam Back have both publicly opposed BIP-110, arguing that restricting transaction types undermines Bitcoin's neutrality and openness.
The debate centers on whether Bitcoin should be preserved purely for financial transactions or whether inscriptions, ordinals, and other non-financial data uses represent legitimate on-chain activity.
Chain Split Risk
If BIP-110-enforcing nodes go live while the vast majority of miners continue building blocks without signaling support, the network could temporarily split into two chains: the dominant mainnet backed by nearly all hash power and institutional capital, and a minority chain populated exclusively by BIP-110 nodes.
The breakaway chain could theoretically gain traction as more node operators adopt the rules, forcing miners to comply. Alternatively, it could grind to a halt through lack of adoption and economic support.
What Happens Next
The signaling window runs until Bitcoin reaches block 965,664, expected in approximately four weeks. During this period, the BIP-110 debate will likely intensify as both sides campaign for support among node operators, developers, and institutional stakeholders.
For now, Bitcoin's mainnet continues operating as normal. But the next four weeks will test whether the UASF playbook that worked for SegWit in 2017 can be replicated — or whether BIP-110 lacks the consensus needed to avoid a messy outcome.