Short answer: On August 9, 2026, it became clear that BIP-110, a contested Bitcoin soft fork meant to restrict non-financial data on-chain, had failed. After mandatory enforcement began at block 961,632, the BIP-110 branch produced only two blocks and stalled while about 99.85% of hashpower stayed on the main chain, so ordinary holders were not affected.
What happened
BIP-110, formally a "reduced data" temporary soft fork, was promoted as a user-activated soft fork (UASF): instead of waiting for miners to agree, nodes running the new rules would start rejecting blocks from miners who did not signal support. The proposal was backed by part of the Bitcoin Knots community, including its maintainer Luke Dashjr, and opposed by prominent figures such as Strategy chairman Michael Saylor and Blockstream CEO Adam Back.
The timeline of the BIP-110 fork attempt:
- Before the deadline: in the last 2,016-block period, only 51 blocks, about 2.53%, signaled support, far below the 55% threshold (1,109 blocks). Most of the signals came from the Ocean mining pool.
- August 8, about 19:35 UTC: Bitcoin reached block 961,632 and mandatory signaling began. BIP-110 nodes rejected the main chain's non-signaling blocks.
- Next eight hours: the minority branch mined just two blocks, 961,632 and 961,633, while the main chain moved on to block 961,681.
- August 9: with the gap widening and no major exchange listing the minority chain, the fork was widely described as failed. Bitcoin traded around $65,000 with little reaction.
What BIP-110 tried to change
The proposal targeted the use of Bitcoin block space for data rather than payments, such as Ordinals inscriptions, BRC-20 tokens, Runes and large Taproot payloads. For about one year it would have imposed limits including:
| Rule | BIP-110 limit | Purpose |
|---|---|---|
| Output size | 34 bytes | Stop large data-carrying outputs |
| OP_RETURN data | 83 bytes | Cap the standard data field |
| Single data push | 256 bytes | Block big inscription payloads |
| Duration | about one year | Temporary, then expire |
Supporters argue such data bloats the chain and raises the cost of running a node. Opponents, including Saylor, argue that Bitcoin's value comes from neutrality, and that filtering valid, fee-paying transactions through consensus rules sets a dangerous precedent.
Why the Bitcoin fork attempt stalled
Bitcoin nodes follow the valid chain with the most accumulated proof of work. A soft fork enforced by a small minority of hashpower produces a chain that is valid under its own rules but grows extremely slowly. The BIP-110 branch also inherited the main chain's full mining difficulty, and at its pace the next difficulty adjustment was estimated to be around 350 days away, so blocks would keep arriving hours apart.
- Hashpower: roughly 0.15% on the BIP-110 branch versus about 99.85% on the main chain.
- No replay protection: the proposal did not include it, so a transaction broadcast on one branch could in principle be replayed on the other.
- Next step for supporters: before the split, Dashjr had said a proof-of-work change would be the only path left if BIP-110 failed, which would effectively create a separate coin.
The episode is the reverse of the 2017 block size fight, when a UASF pushed miners toward SegWit. This time, the economic majority and miners stayed put.
What it means for you
For anyone who holds or swaps BTC through an exchange, custodian or a standard Bitcoin Core node, nothing changed: balances, addresses and transactions live on the main chain. A few practical points still apply:
- Ignore offers to "claim" coins from a Bitcoin fork; such campaigns are a common route to seed-phrase theft. Our wallet security guide explains why a seed phrase should never be typed into a website.
- If you run Bitcoin Knots with BIP-110 enforcement, your node is following the stalled branch; check which chain your wallet sees before sending.
- Services that follow the majority chain, including instant swaps of BTC, keep working as usual.
Key takeaways
- BIP-110 reached mandatory signaling at block 961,632 on August 8, 2026, with only about 2.53% of blocks signaling support.
- The minority branch mined two blocks and stalled; about 99.85% of hashpower stayed on the main chain.
- No major exchange listed the BIP-110 chain, and the BTC price barely moved.
- The proposal lacked replay protection, a risk for anyone transacting on both branches.
To see how Bitcoin's supply schedule works independently of such rule changes, read our explainer on the Bitcoin halving.
Sources: CoinDesk, crypto.news, KuCoin News, TFTC
Frequently asked questions
What is BIP-110 in Bitcoin?
BIP-110 is a proposed temporary soft fork that would, for about one year, restrict how much arbitrary non-financial data Bitcoin transactions can carry, targeting inscriptions, BRC-20 tokens and similar payloads. It was pushed as a user-activated soft fork and needed 55% of blocks to signal support.
Did the BIP-110 fork create a new coin?
No new coin gained a market. The BIP-110 branch produced only two blocks after the split at block 961,632 and then stalled, about 99.85% of hashpower stayed on the main chain, and no major exchange listed the minority chain.
Do I need to do anything with my bitcoin after BIP-110?
Most holders do not. Bitcoin Core, exchanges and custodians follow the main chain. Users running a node that enforces BIP-110 should know it is tracking a stalled minority branch, and anyone moving coins should use services that follow the majority chain.
