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Bitcoin's proposed BIP-110 soft fork continues to face limited miner support ahead of a key activation period, despite renewed debate over restricting non-financial data on the blockchain. The proposal would temporarily limit data storage methods linked to Ordinals and BRC-20 tokens for one year while exempting older transaction outputs.
Miner signaling remains far below the required threshold, and several prominent Bitcoin figures have publicly opposed the plan. Meanwhile, Bitcoin traded near $63,800 on Monday as broader financial markets reacted to fresh geopolitical tensions in the Middle East.
Developer Dathon Ohm introduced BIP-110, known as the Reduced Data Temporary Soft Fork, in December 2025. The proposal would impose temporary restrictions on non-financial data stored in Bitcoin transactions. Specifically, it would cap OP_RETURN fields at 83 bytes, limit data pushes to 256 bytes, and restrict most new outputs to 34 bytes. However, transaction inputs spending coins created before activation would remain permanently exempt.
The proposed limits would automatically expire about one year after activation. Supporters argue the measures would reduce blockchain growth and return Bitcoin's primary focus to payments. In contrast, critics argue the proposal would reject valid fee-paying transactions while favoring certain transaction types.
Michael Saylor, Executive Chairman of Strategy, stated on July 12, 2026, that BIP-110 would transform a spam dispute into a consensus rule change that invalidates some currently valid, fee-paying transactions.
So far, miner backing has remained minimal. Signaling has never exceeded roughly 1% during any measurement period and currently stands at zero, with no major mining pool supporting the proposal. One monitoring service recorded only 38 signaling blocks from more than 9,000 mined since May 1, 2026. That represents approximately 0.42% support. Node adoption also remains in the low single digits.
Miners signal support by setting a specific bit within the block version field. Even so, almost no miners have activated that signal.
BIP-110 uses a modified activation process requiring support from 55% of miners, or 1,109 of 2,016 blocks during a difficulty adjustment period. That requirement sits below the traditional 95% threshold used for previous Bitcoin soft forks.
The current signaling period is expected to reach a mandatory window near block 961,632, which projections place in early August. If the proposal locks in, activation would occur near block 965,664 around September 1, 2026. Current support levels indicate the proposal would create only a small minority chain instead of a network-wide upgrade.
Several well-known Bitcoin figures have opposed BIP-110 before the upcoming deadline. Besides Michael Saylor, Blockstream Chief Executive Adam Back rejected the proposal, while developer Jameson Lopp criticized its activation parameters.
They warned that a disputed fork could split the Bitcoin blockchain and require exchanges and node operators to prepare for two separate networks. Meanwhile, Bitcoin traded near $63,800 on Monday. The cryptocurrency fell 0.3% over the previous 24 hours but remained 2% higher for the week.
Also Read: BTC BIP-110 Faces August Deadline with No Major Mining Pool Support
At the same time, traditional markets reacted to the fourth round of U.S. strikes on Iran within one week. Spot gold dropped as much as 1.6% to around $4,050 per ounce, while Brent crude climbed 4% above $79 per barrel amid uncertainty surrounding the Strait of Hormuz. Additionally, Treasury prices declined across the yield curve, pushing the two-year yield to its highest level since February 2025. MSCI's Asia Pacific equities index also fell 1.6%.
U.S. Central Command said American forces struck Iran after an attack on a container ship. Conflicting statements about the Strait of Hormuz kept uncertainty elevated since roughly one-fifth of global seaborne oil normally passes through the waterway.
Markets reflected concerns that prolonged conflict could keep oil prices elevated and encourage the Federal Reserve to maintain higher interest rates for longer. Minutes from the Fed's June meeting also showed that several policymakers previously considered raising rates before choosing to hold them steady.
BIP-110 continues to face minimal miner support despite proposing temporary limits on non-financial Bitcoin transaction data. Prominent Bitcoin figures have opposed the plan, while activation remains unlikely under current signaling levels. Meanwhile, Bitcoin held relatively steady as global markets reacted to rising geopolitical tensions.
