BIP-110 is about to enter its Signalling Window in August. This article explains what you can do to prepare.
Bitcoin is approaching an unusual protocol event.
In August 2026, at block height 961,632 (currently expected around August 7th) nodes supporting BIP-110 are scheduled to begin enforcing a mandatory miner-signalling requirement. Depending on how miners, node operators, exchanges and other infrastructure providers respond, the event could pass quietly, cause temporary disruption, or result in competing versions of the Bitcoin blockchain.
For most Bitcoin holders, there is no reason to panic. However, anyone planning to deposit, withdraw or make a significant bitcoin transaction around the relevant block heights should understand what is being proposed and why the activation method has become controversial.
Skip the details; Just tell me what HardBlock will do
During this uncertain fork event in early August, before block height 961,632 (currently expected around August 7th), HardBlock may temporarily:
- pause bitcoin deposits and withdrawals and the buying/selling of bitcoin;
- require additional confirmations once back online;
- stop automatically crediting incoming transactions.
Be aware that such a pause in services is simply a precaution against crediting deposits from a chain that is subsequently reorganised or abandoned. We will be continually monitoring competing chain tips and reorganisations.
In practice, customers will likely see our site put into ‘maintenance mode’ for the activation period. We will provide information updates on our ‘maintenance mode’ page as things progress. This could be as short as 12-24 hours, but longer if the outcome is not immediately clear.
We recommend moving your bitcoin into self-custody, avoiding unnecessary transactions close to the activation window and to monitor our ‘maintenance mode’ page and X account for updates: https://x.com/HardBlockBTC.
GuardBlock
For our GuardBlock customers: GuardBlock will remain online and continue to co-sign transactions as normal. It’s worth remembering that bitcoin held in a GuardBlock vault is different from bitcoin on the HardBlock exchange. GuardBlock is non-custodial, meaning you keep full control and the final decision on any transaction is always yours.
Because of the contentious debate and the uncertainty around the outcome, including the potential for transaction reversals, we recommend holding off on any non-essential transactions until the network stabilises. This is simply a precaution: waiting until the picture is clear helps protect you from acting on a chain that may later be reorganised or abandoned.
What is BIP-110?
BIP-110, formally titled the Reduced Data Temporary Softfork, proposes a temporary change to Bitcoin’s consensus rules. Its purpose is to make it more difficult to use the Bitcoin blockchain for storing large quantities of arbitrary, non-monetary data.
It is aimed primarily at techniques used by Ordinals inscriptions and similar protocols, where images, tokens or other information are embedded within Bitcoin transactions.
The proposal would temporarily:
- limit most new output scripts to 34 bytes;
- retain an 83-byte limit for
OP_RETURNoutputs; - limit most data pushes and witness elements to 256 bytes; and
- restrict several less common Taproot features, including large control blocks, Taproot annexes and certain script operations.
The restrictions would remain active for 52,416 blocks—approximately one year—before automatically expiring.
BIP-110 has been assigned a BIP number and marked “Complete” by its author. This does not mean that Bitcoin has adopted it. The BIP process explicitly states that an individual BIP represents its author’s recommendation rather than established Bitcoin consensus. Some BIPs are widely adopted, while others are never activated.
Would existing bitcoin be frozen?
Ordinary bitcoin holdings are not automatically frozen by BIP-110.
The proposal includes a grandfathering provision. Any unspent transaction output, or UTXO, created before the activation height would remain spendable under the existing rules, even while BIP-110 was active. The new restrictions would apply only to UTXOs created at or after activation.
The proposal’s authors nevertheless acknowledge some theoretical edge cases involving advanced Taproot arrangements. A post-activation UTXO created by a pre-signed transaction could encounter difficulty if its only available spending path used a prohibited construction, such as an unusually deep Taptree or a restricted OP_IF or OP_NOTIF script path.
This is unlikely to affect ordinary hardware wallets, standard multisignature wallets or normal key-path Taproot payments. It may be more relevant to experimental vaults, advanced Miniscript policies and protocols built around pre-signed Taproot transactions.
Users of specialised Taproot products should therefore seek compatibility information from the relevant wallet or service provider before activation.
What problem is BIP-110 trying to solve?
Supporters believe Bitcoin should remain focused on monetary transactions rather than permanent file storage.
Their argument is that arbitrary data creates costs that are not fully borne by the person publishing it. A miner receives a one-time transaction fee, while node operators must continue downloading, validating and storing the associated blockchain data. During periods of intense inscription activity, these transactions may also compete with ordinary payments for block space.
BIP-110 supporters therefore describe the proposal as a temporary defensive measure intended to:
- discourage large-scale data-embedding businesses;
- reduce unnecessary burdens on node operators;
- make block space more accessible for monetary transactions; and
- reinforce Bitcoin’s primary purpose as censorship-resistant money.
The proposal does not claim that all arbitrary data can be eliminated. Its own specification acknowledges that determined users could break information into smaller pieces or disguise it as financial data. Its objective is to make data storage less convenient and to signal that it is not a supported use case.
Why is the proposal controversial?
Bitcoin has traditionally allowed miners to select any valid fee-paying transactions. From this perspective, attempting to distinguish between “monetary” and “non-monetary” activity risks establishing a precedent in which groups of developers or node operators decide which uses of Bitcoin are legitimate.
Critics argue that BIP-110 does not prevent data storage; it merely makes particular methods less convenient. They question whether the resulting reduction in data use would justify the compatibility costs and disruption associated with a consensus change.
BIP-110 uses a 55% miner-signalling threshold, considerably lower than the 95% threshold traditionally associated with BIP9 deployments. It also includes a mandatory-signalling period during which supporting nodes reject blocks that do not signal for the proposal. Critics warn that attempting this with limited miner and economic support could place BIP-110 nodes on a minority chain, or leave them waiting for compatible blocks that arrive very slowly.
Where does miner support currently stand?
At the BIP-110 monitor’s update on 27 July 2026, 7 of the first 279 blocks in the current difficulty period had signalled for BIP-110, representing approximately 2.51%. You can check out the monitor yourself, here: https://bip110.org/monitor.
The threshold is 1,109 signalling blocks out of a complete 2,016-block period. At that snapshot, another 1,102 signalling blocks were required, with 1,737 blocks remaining in the period. Reaching the threshold would therefore require a substantial and abrupt change in the behaviour of major mining pools.
Signalling can change quickly, so these figures should be treated as a dated snapshot rather than a prediction.
What happens in August?
BIP-110’s schedule is based on block heights rather than calendar dates. Estimated dates can move because Bitcoin blocks do not arrive at exactly ten-minute intervals.
The relevant sequence is:
| Block height | What happens |
|---|---|
| 961,632 | Beginning of the mandatory-signalling period if the proposal has not already locked in |
| 963,648 | Mandatory lock-in under the later activation pathway |
| 965,664 | Reduced-data consensus rules become active under that pathway |
| 52,416 blocks after activation | The restrictions automatically expire |
There are two principal activation paths.
Path one: the 55% threshold is reached
If 1,109 blocks signal during the current 2,016-block period, BIP-110 locks in at block 961,632.
There would then be one additional difficulty period before the new rules activate at block 963,648. In this scenario, the mandatory-signalling confrontation would be avoided because the threshold had already been reached.
Path two: the threshold is not reached
If miner signalling remains below 55%, BIP-110 nodes enter mandatory-signalling mode at block 961,632.
From block 961,632 through block 963,647, these nodes reject any block that does not signal bit 4. On the BIP-110 chain, the proposal would then lock in at block 963,648 and become active at block 965,664.
The phrase “mandatory signalling” can be misleading. BIP-110 software cannot force every miner on the Bitcoin network to signal. It can only refuse to accept blocks that do not signal. This is the source of a potential chain-split.
What could actually happen?
Several outcomes remain possible.
Miners begin signalling
Major mining pools could change position before block 961,632 and provide enough signals for early lock-in.
Alternatively, miners might signal during the mandatory period simply to continue producing blocks accepted by BIP-110 nodes. Setting the signal bit does not, by itself, prove that a miner agrees with the proposal’s policy objectives, but widespread signalling could allow the network to remain on a common chain. There is a game-theory where this could happen last minute as the large mining pools play a game of chicken.
The majority of miners ignore mandatory signalling
If most miners continue producing non-signalling blocks, ordinary Bitcoin nodes will accept those blocks while BIP-110 nodes reject them.
BIP-110 nodes could then follow a separate branch mined by the smaller amount of compatible hash power. If very little hash power supports that branch, its blocks may arrive extremely slowly. Rather than seeing two healthy blockchains operating side by side, BIP-110 users could experience a severely delayed chain or a node that appears to have stopped synchronising.
A split occurs when the rules activate
Even if miners signal and the network remains together during August, another divergence point exists when the reduced-data rules become active.
At that stage, BIP-110 nodes reject blocks containing transactions that violate the new restrictions. Non-enforcing nodes continue to regard those blocks as valid. A visible split would occur only if a miner actually produced such a block and competing miners continued building on both sides.
The disagreement resolves without a lasting fork
A short-lived competing branch is not automatically a new, economically significant Bitcoin asset.
Miners may reorganise onto one chain, node operators may change software, and businesses may converge around the chain with the greatest combination of proof of work, liquidity, infrastructure and economic support.
A permanent fork is possible in theory, but it would require sustained mining and economic demand on both sides.
What is HardBlock going to do?
HardBlock has to decide which chain we recognise for deposits, withdrawals and account balances.
During this uncertain fork event, HardBlock may temporarily:
- pause bitcoin deposits and withdrawals;
- require additional confirmations;
- stop automatically crediting incoming transactions;
Be aware that such a pause in services does not indicate that a decision has been made or you are ‘locked out’ of your bitcoin held with us. It is simply a precaution against crediting deposits from a chain that is subsequently reorganised or abandoned.
In practice, customers will likely see our site put into ‘maintenance mode’ for the activation period. We will provide information updates on our ‘maintenance mode’ page as things progress and while we monitor competing chain tips and reorganisations. This could be as short as 12-24 hours, but longer if the outcome is not immediately clear.
We encourage you to follow the subsequent preparation steps and monitor our X account for updates: https://x.com/HardBlockBTC
How HardBlock customers can prepare
Most holders do not need to make dramatic changes. Sensible preparation is primarily about avoiding unnecessary transactions during a potentially confusing period.
Review your custody arrangements
As always, we highly recommend moving your bitcoin to self-custody prior to the signalling window.
However, moving to an unfamiliar wallet in a rush can create a greater risk than the fork itself. Seed backups, receiving addresses and recovery procedures should be checked carefully before transferring substantial funds. Reach out to us if you need support.
Avoid time-sensitive transfers near the relevant heights
Where practical, avoid making urgent or unusually large transactions immediately around block 961,632 or any subsequent activation height.
If the network remains stable, normal activity can resume. If competing chains appear, waiting allows wallet providers, exchanges and node operators to clarify which chain they recognise.
Do not attempt to trade or “split” forked coins without understanding the risks
Should two chains persist, users may see claims that they possess coins on both networks. Treat tools offering to “claim” or “split” those coins with extreme caution.
Malicious wallet software, fake support services and requests for seed phrases are predictable risks during contentious fork events. Expect some weird stuff, such as node attacks and other nastiness due to the contentious nature of this change.
Monitor block heights rather than relying solely on dates
The August timetable is approximate. The protocol responds to block heights, not a fixed day or hour.
The most important heights are 961,632, 963,648 and 965,664.
Follow announcements from your wallet provider or any other services you use
For services outside HardBlock, look for their own announcements in regards to what you should know about their service during or after the activation period.
Node operators should also understand whether their chosen software enforces BIP-110. Running Bitcoin Core, Bitcoin Knots with BIP-110 enabled, or a non-enforcing Knots build may produce materially different behaviour during the mandatory-signalling phase.
The broader significance of BIP-110
BIP-110 is about more than transaction data.
It is a practical test of Bitcoin’s decentralised governance: developers can propose rules, miners can signal or refuse, businesses can choose which chain they support, and users can select the software through which they validate Bitcoin.
No company, developer group or mining pool can simply declare a proposal adopted. At the same time, incompatible groups can create real disruption by enforcing different definitions of a valid block.
The current level of miner signalling suggests that a smooth early activation is far from assured. That does not guarantee a damaging split, nor does it mean that the August event can be ignored.
For ordinary users, the appropriate response is straightforward: maintain secure custody, avoid rushed decisions, monitor the relevant block heights and allow the network to resolve any uncertainty before making non-essential transactions.
Bitcoin has survived contentious protocol disputes before. BIP-110 will provide another demonstration of how its participants coordinate when agreement is incomplete.
Check out the bip110 activation monitoring page and github here for more details:
https://github.com/bitcoin/bips/blob/master/bip-0110.mediawiki
And follow us on X for up-to-date communications during the activation window: https://x.com/HardBlockBTC