Strategy's Saylor Rejects Bitcoin BIP-110 Over Censorship Risks
Strategy executive chairman Michael Saylor warns that a proposal to restrict arbitrary data on Bitcoin risks network splits, weaker security, and a damaging censorship precedent.
Michael Saylor, executive chairman of Strategy, has publicly rejected Bitcoin Improvement Proposal 110 (BIP-110). He warned that the plan to temporarily block "spam" data from the blockchain threatens the network's core principles.
The proposal seeks a one-year soft fork to restrict data storage, aiming to refocus the blockchain on monetary functions. Supporters frame the measure as a necessary step to restore Bitcoin's original purpose as peer-to-peer digital cash. It would introduce seven new consensus limits and lower the miner-signaling threshold required for approval from 95% to 55%.
Saylor argues that filtering data requires judging user intent, which contradicts Bitcoin's permissionless nature. "Bitcoin cannot read intent," he wrote in a detailed critique on X. "The network cannot know whether bytes represent an image, a proof, a contract, metadata, an authentication record, or a future application."
Lowering the approval threshold to 55% is particularly contentious. Saylor called the mechanism "too aggressive," arguing it increases the likelihood of a network split and market uncertainty. He noted that making it easier to force through changes could encourage factionalism.
For institutional investors, Bitcoin's value proposition relies on a stable, open environment. Strategy, the world's largest publicly listed bitcoin treasury firm, holds 843,775 BTC worth $54.31 billion. Any shift away from this stability could dent that institutional appeal.
Saylor also warned of direct economic blowback. Restricting network uses could suppress aggregate fee demand, directly harming miner revenues. This would weaken network security precisely as block subsidies continue to halve.
"The proposed cure is more dangerous than the condition," Saylor said. He cautioned that if data storage is restricted today, privacy tools or corporate applications could be targeted tomorrow. Instead of altering foundational consensus rules, Saylor advocated for managing capacity through existing market fee structures and individual relay policies.
"Bitcoin does not need guardians of purity," he concluded. "It needs guardians of neutrality."
