What Is the BIP-110 Upgrade? Why Bitcoin Developers Can’t Agree

BIP-110 is one of the most controversial Bitcoin proposals of 2026. Formally called the Reduced Data Temporary Softfork, it would impose one year of consensus-level limits on arbitrary data embedded in Bitcoin transactions.

Supporters see the upgrade as protection against blockchain spam. Critics see censorship, technical risk, and a dangerous precedent for Bitcoin governance.

Bitcoin developers are arguing over whether the protocol should distinguish between monetary activity and other valid transactions. Related: Top July 2026 Crypto Updates: Crypto Market at a Breaking Point — Is Another Crash Coming? What Is BIP-110?

BIP-110 is a proposed Bitcoin soft fork written by the pseudonymous developer Dathon Ohm, with the original draft and technical advice credited to Luke Dashjr.