MSTR’s Michael Saylor Rips BIP-110 As ‘Alien’ To Bitcoin’s Soul, Calls It Monetary Purity By Fiat

• Michael Saylor said on Tuesday that BIP-110 is not consistent with the core principles of Bitcoin. 

• He added that it would restrict the legitimate use of the network and restrict the use of non-payment data in Bitcoin transactions.

• The proposal remains highly divisive, with little miner support and growing concerns it could split the Bitcoin network.

Michael Saylor, executive chairman of Strategy (MSTR), on Tuesday intensified his criticism of BIP-110, adding that the controversial Bitcoin (BTC) proposal is inherently incompatible with the network’s founding philosophy.

“The impulse to change Bitcoin’s rules merely to prevent others from using Bitcoin in ways you disapprove of is statist and alien to a community rooted in liberty, property rights, free markets, natural law, and Austrian economics,” Saylor wrote on X. “BIP 110 would impose monetary purity by fiat.”

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BIP-110 would put a cap on the amount of non-payment-related data that can be attached to Bitcoin transactions, such as images or files. The real danger of the proposal, Saylor has said before, is not so much the spam it seeks to prevent, but the precedent it sets. It could invalidate legitimate, fee-paying transactions and push Bitcoin towards rule changes decided by a small subset of the network, rather than the network as a whole.

MSTR shares were up over 3% in midday trading on Tuesday. On Stocktwits, the retail sentiment around MSTR shifted to ‘neutral’ from ‘bearish’ zones, while chatter around it remained in the ‘low’ levels over the past day.

Strategy’s stock performance comes in tandem with the broader crypto market, which saw a significant uptick in sentiment. On Monday, the White House reportedly agreed on the ethics language in the CLARITY Act, which would now accelerate the bill to the Senate floor vote. 

A Fight Bitcoin’s Developers Are Divided On

Last week, Blockstream CEO Adam Back said that Bitcoin had “robustly rejected” the proposal, which he described as an attempt to “police other people” rather than to solve any real technical problem. He said the only real way forward for the supporters was to fork off and build a new version of Bitcoin. “Your permissionless recourse is to club together and create a fork,” Back wrote. “But bitcoin won’t be joining it.”

Bitcoin Core developer Greg Maxwell has also warned that BIP-110 may invalidate pre-signed transactions, while developer Peter Todd has pointed out that it is based on a User Activated Soft Fork approach rather than broader miner consensus and lacks a defined activation timescale.