Bitco community debate over the use of data on the chain is again warming. The developer Luke Dashjr rejected an outside request to withdraw BIP-110, bringing this restricted non-financial data uplink proposal back to the discussion.

Proposed Focus Block Space Use

BIP-110, known as the “reduced data temporary soft fork” proposal, aims to temporarily restrict the way in which part of the transaction is written in any way. As envisaged in the proposal, restrictions would only apply to newly generated UTXOs after activation and would not affect existing stocks.

Proponents believe that the large volume of trades, such as inscriptions, Ordinals and Runes, take up limited block space, push up the storage burden and divert bitcoin from the original location of point-to-point payment networks. In the view of this group, temporary tightening of associated uses helps to compress garbage information and to pull back the focus of the network to pay back and transfer value.

Objections are concerned about subjective limitations.

Opponents argued that block space should be open to all legitimate transactions as long as users were willing to pay the fees. They fear that once a distinction is made between “admissible” transactions, networks may introduce subjective use criteria.

In response to a recent interpretation by some of Michael Saylor in support of the waiver of BIP-110, Luke Dashjr publicly stated that Sailor did not address the proposal. He also said that it was too late to discuss the cancellation of BIP-110.

Saylor's speech was brought into the debate.

As Michael Saylor recently said, Bitcoin was not designed to compete with technology platforms or software products, but was characterized by “slow advance without error”. However, the report notes that his statement does not directly relate to BIP-110.

This makes the BIP-110 discussion no longer limited to technical details, but extends further to the long-term positioning of bitcoin: whether to continue to accommodate data-type applications or to return more clearly to the positioning of payment networks.

At the same time, there are pressures at the market level. The report mentions that, affected by ETF outflows and macro-uncertainty, the BTC has fallen by more than 1 per cent in the last 24 hours, reporting $62080.