Bitcoin’s BIP-110 soft fork proposal entered its mandatory signaling phase on August 8 at block height 961,632 and promptly created a minority chain that has struggled to advance. Enforcing nodes began rejecting blocks that fail to signal support via version bit 4, while the dominant Bitcoin network continued operating under existing rules. Roughnecks, using OCEAN’s DATUM system, mined the first two blocks on the BIP-110 branch at heights 961,632 and 961,633. Progress then halted.

Mandatory Phase Begins With Far Below Threshold Support

BIP-110 aimed to temporarily restrict certain forms of non-monetary data storage on the blockchain, including images, text, and Ordinals-style inscriptions, for roughly one year. Supporters, led by Bitcoin Knots maintainer Luke Dashjr, contended that such data consumes block space and contributes to higher transaction fees. The proposal set a 55 percent signaling threshold during the voluntary period. In the difficulty period ending at block 961,631, only 51 of 2,016 blocks signaled support, equaling 2.53 percent.

Despite missing that target, the specification includes a mandatory window from blocks 961,632 to 963,647. Nodes enforcing BIP-110 treat non-signaling blocks as invalid during this interval, producing a chain split. Ordinary Bitcoin nodes accept those blocks and continue building the primary chain without interruption.

Minority Branch Freezes While Main Chain Advances

Monitoring data showed the BIP-110 chain remaining frozen at block 961,633 for many hours after the second block was found. By the time the dominant chain reached height 961,744, the gap had widened to 111 blocks. Earlier snapshots recorded gaps of 98 and 88 blocks as the main network kept adding blocks at its normal rate. OCEAN’s BIP-110 endpoint displayed approximately 257 petahashes per second of hash power directed at the minority branch, yet no additional block appeared for about 17 hours.

The minority chain inherited Bitcoin’s full difficulty of 127.48 trillion at the moment of the split. Because difficulty adjusts only after 2,016 blocks, the enforcing branch must complete nearly an entire period under current conditions before any relief arrives. With block production measured in many hours rather than roughly ten-minute intervals, the timeline for a retarget stretches significantly unless substantially more hash power joins.

Strategy Executive Chairman Michael Saylor estimated that roughly 99.85 percent of network hash power remained on the primary chain. He further projected that, at approximately 0.15 percent of total hash power, the minority branch could require around 25 years to reach its first difficulty adjustment. These figures represent his calculations based on observed activity rather than protocol measurements.

Community Positions and Practical Risks

Opponents of the proposal, including Saylor and Blockstream co-founder Adam Back, had cautioned that enforcing new consensus rules without broad miner support risked dividing the network. Supporters maintain that temporary limits on arbitrary data are necessary to preserve block space for monetary transactions. Both positions continue to frame the debate over how Bitcoin should allocate its limited capacity.

Holders of coins that existed before the split face potential replay risk. BIP-110 does not automatically provide protection that separates balances across the two chains. A transaction signed on one branch could, under certain conditions, remain valid on the other and be rebroadcast. Bitcoin developer Kevin Loaec noted that users attempting to move coins on the minority chain without first separating outputs could expose corresponding balances on the dominant chain. Leaving pre-split coins unmoved avoids creating a replayable transaction.

OCEAN stated that some miners using its templates may have directed hash power toward the BIP-110 chain for about 18 hours without intending to do so. The company plans to issue rebates totaling approximately 0.3 BTC to cover the difference, with payments expected within 72 hours.

Path Ahead for the Proposal

Mandatory signaling continues through block 963,647. Under the BIP-110 specification, the deployment is designed to reach LOCKED_IN no later than block 963,648 and become ACTIVE at block 965,664. The reduced-data consensus rules would then apply for 52,416 blocks, or about one year at Bitcoin’s intended block production rate. Those heights will arrive on markedly different schedules for the two branches given the current disparity in hash power and block production.

Some supporters have prepared experimental code that would change the proof-of-work algorithm as a contingency. Developer Chris Guida described the code as material held in reserve rather than a scheduled activation with a fixed date. No timeline for any such change has been set.

Bitcoin’s price traded near $65,000 with limited apparent reaction to the developments. The primary chain has continued producing blocks without disruption, while the minority branch remains stalled at two blocks and more than 100 blocks behind.