Technique's Michael Saylor Makes 110-Level Case Towards Bitcoin's BIP-110 – Decrypt

Michael Saylor has escalated his opposition to a contentious Bitcoin proposal, publishing a sweeping 110-point essay over the weekend arguing that BIP-110—a tender fork meant to curb non-financial information on the community—would trigger extra hurt than the issue it targets.

Titled “110 Causes BIP 110 Is a Dangerous Thought,” the Technique government chairman billed the textual content as a “case for impartial guidelines, arduous consensus, open markets, and permissionless innovation.” Saylor stated he shares supporters’ objectives—conserving validation low cost, funds reasonably priced, and Bitcoin centered on sound cash—however rejects their treatment.

BIP-110 would, for round a yr, tighten Bitcoin’s consensus guidelines to restrict the methods used to embed arbitrary information, concentrating on the inscriptions and Ordinals which have crowded block house and pushed up charges since 2023. Supporters, together with developer Luke Dashjr and the Bitcoin Knots camp, forged it as a solution to struggle spam, whereas critics say it might reject legitimate transactions and will cut up the community.

Kill or treatment?

Saylor’s essay builds on his earlier argument that the hazard lies within the precedent that BIP-110 would set up. Bitcoin “can’t learn intent,” he wrote—the community cannot inform whether or not bytes symbolize a picture, a proof, a contract, or a future utility—so proscribing the varieties used to retailer information additionally blocks professional ones. “‘Spam’ will not be a consensus primitive,” he argued, and disapproval of a use “will not be invalidity.”

Altering consensus to police one contested use, he warned, creates a template others might reuse, with privateness instruments, novel custody, stablecoin settlement or token methods probably going through “related arguments.” That, he wrote, is “not a prediction” however “a governance threat.” The restrictions would lapse after a few yr, “however the precedent doesn’t.” He manufacturers BIP-110 a “Bitcoin Iatrogenic Proposal”—one the place the remedy itself does the injury.

Saylor additionally objects to the activation design, which lowers the miner-signaling threshold to 55% from the 95% utilized in earlier tender forks and drops the standard choice to let a proposal quietly expire. Signaling has been operating beneath 1%, far wanting that 55% bar, in response to the proposal’s monitoring dashboard, and Saylor cautioned that mismatched enforcement “can divide the community.”

“Guardians of neutrality”

Saylor forged the dispute as a struggle over Bitcoin’s character. “Bitcoin’s energy will not be that everybody agrees on each use,” he wrote, arguing that it lies in the truth that “disagreement is contained by impartial guidelines and arduous consensus.” He concluded that, “Bitcoin doesn’t want guardians of purity. It wants guardians of neutrality.”

The Technique chairman’s stance aligns him with Blockstream CEO Adam Again, Casa’s Jameson Lopp and Bitcoin advocate Samson Mow, who’ve additionally pushed again on BIP-110, in opposition to Dashjr and the Knots camp. BIP-110’s necessary signaling window opens in August, with activation focused round September 1.

The manifesto lands as Saylor’s Bitcoin treasury agency pivots from its “by no means promote” stance to “energetic capital administration,” pausing its Bitcoin purchases because it builds up its money reserve to $3 billion so as to fulfil inventory dividend funds and debt curiosity obligations. Final week, Technique CEO CEO Phong Le stated final week the agency would not fear about its debt except Bitcoin crashed to the $8,000–$10,000 vary.

On Myriad, a prediction market owned by Decrypt’s father or mother firm Dastan, customers place simply an 8% probability on Technique holding over 1 million BTC by the tip of the yr, down from 17% every week in the past.