Bitcoin Improvement Proposal 110 (BIP-110) is entering a critical phase, with signaling set to begin in approximately 40 hours as of August 7, 2026. The proposal, which seeks to restrict non-monetary data such as Ordinals inscriptions in Bitcoin transactions, has drawn stark divisions within the community. Only 48 of 1,831 blocks (2.62%) signaled support for BIP-110 at 14:41:49 UTC on August 7, leaving 185 blocks until the mandatory signaling period starts. Even if all remaining blocks signaled, the tally would reach just 11.56% — far short of the required 55% (1,109 blocks) in a 2,016-block window.
BIP-110 aims to shrink block space consumed by data-heavy inscriptions by enforcing a temporary soft fork. Proponents argue this preserves Bitcoin's core monetary function, while opponents claim it could undermine neutrality. The controversial measure has gained traction in the Bitcoin Knots implementation but remains unsupported by Bitcoin Core, leaving most network nodes on non-enforcing software. Core contributor Antoine Poinsot explicitly stated Core does not enforce the proposal, and a related pull request was closed unmerged in March.
From block height 961,632, nodes running BIP-110-enforcing software will reject blocks that fail to signal bit 4. This could lead to a divergence between chains if miners produce compatible blocks on both sides. Mining pool OCEAN has already set up separate signaling and non-signaling endpoints, with its default reportedly switching on July 15. However, independent verification of that switch is still pending. Bitcoin Knots’ August 7 release warns that older non-enforcing software may leave chainstate unsafe, and it includes a safeguard to invalidate non-signaling blocks during startup.
The stakes for everyday Bitcoin users are tangible: if data-heavy inscriptions are curbed, transaction fees could drop as block space frees up. But a lack of consensus may fragment the network, creating uncertainty. As the mandatory signaling period runs from height 961,632 to 963,647 (with activation at 965,664 if locked in), the coming days will reveal whether miner signaling grows or the enforcing chain remains a niche. The outcome will test Bitcoin’s governance dynamics and could reshape block space allocation for years.
