BIP 110 Fails as Backers Threaten Bitcoin Split by September

The BIP 110 proposal, which aimed to restrict non monetary data like Ordinals inscriptions on the Bitcoin network, has effectively collapsed. The effort failed to gain the required support from miners, reaching only about 2.5% of the target threshold. Following this rejection, proponents of the rule change are now suggesting a complete break from Bitcoin.

Key figures behind the proposal, including Luke Dashjr, have indicated that a new coin could emerge as early as September 1. This move would involve changing the proof of work algorithm, which would make existing Bitcoin mining hardware incompatible with the new chain. Such a strategy mirrors previous hard forks in industry history, though such attempts have often struggled to gain significant market value.

The fallout from the failed fork has created tension within the development community. There is now a push to remove Dashjr from his role as a BIP editor, citing concerns over his handling of the proposal. Additionally, the OCEAN mining pool is facing backlash and a massive decline in hashrate after admitting it inadvertently directed some user power toward the minority chain.

While the market remained stable throughout the disruption, the internal conflict highlights ongoing debates about the future of the Bitcoin network. Traders should watch for any official announcements regarding a potential chain split on September 1, as well as any leadership changes within the core development community.