Bitcoin BIP-110 Enters Signaling Phase as Miner Support Stays Below 3%

Bitcoin’s controversial BIP-110 proposal has entered its mandatory signaling period after the network reached block 961,632, setting the stage for a potential dispute between miners and node operators over how non-financial data should be handled on the blockchain.

The BIP-110 signaling phase began at approximately 19:35 UTC on Saturday. Early miner support has remained extremely limited, rarely climbing above 2.5%. That is far below the 55% threshold required under the proposal’s signaling mechanism.

BIP-110 aims to temporarily restrict certain forms of non-financial data embedded in Bitcoin transactions. The proposal has divided the Bitcoin community, with prominent industry figures including Strategy chairman Michael Saylor and Blockstream CEO Adam Back publicly opposing the plan.

Despite weak backing from Bitcoin miners, BIP-110 supporters are pursuing the proposal as a user-activated soft fork (UASF). Under this approach, Bitcoin node operators would install software enforcing the new rules and reject blocks produced by miners that do not signal support.

Such enforcement could put pressure on miners to comply, but it also carries the risk of a Bitcoin chain split. If BIP-110 nodes begin rejecting blocks from the overwhelming majority of miners, two competing networks could temporarily emerge: the existing Bitcoin mainnet supported by most hash power and institutional participants, and a smaller chain consisting of nodes enforcing BIP-110.

Supporters point to Bitcoin’s 2017 SegWit activation and BIP-148 as a precedent for using a UASF to influence miners. SegWit ultimately introduced a major change to Bitcoin’s transaction structure by separating signature data from other transaction information.

However, BIP-110 faces a considerably different environment given its currently minimal miner support. A minority chain could attract additional node operators and eventually pressure miners to switch, or it could struggle to produce blocks and lose momentum.

The BIP-110 signaling window will remain open until Bitcoin reaches block 965,664, which is expected in roughly four weeks. The coming weeks will therefore be closely watched for signs of rising miner support, increased node adoption, or the possibility of a contentious Bitcoin network split.