CryptoSlate
BIP-110, the proposal to relax Bitcoin's relay policy for certain non-standard transactions, has crystallised into a hard deadline for exchanges ahead of an expected miner signalling window later this year. The proposal would let nodes propagate a narrow class of transactions that the current mempool rules reject, and the choice of which version of the rules to run now sits with every major venue before miners weigh in.
Why it matters
A fork debate that ends with miners signalling is unusual: most activation fights in Bitcoin's history have been settled by node-side coordination. The August deadline pushes the decision upstream, into the hands of custodians and spot ETF issuers whose published node policies effectively define what "Bitcoin" means for retail and institutional flow.
Market impact
Network activity has broken above trend for the first time since mid-2024, with transaction counts at their highest point in 18 months even as fees remain muted and price action stays range-bound. The on-chain surge is not yet being priced in, but a clean signalling round from miners would change the read: the fork is the first credible protocol-level event since the 2024 cycle and the first with a public venue-side deadline attached.
Frequently asked questions
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What is BIP-110?
BIP-110 is a Bitcoin Improvement Proposal that would relax node relay policy for a narrow class of non-standard transactions, letting them propagate through the mempool where current rules reject them.
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Why does the August deadline matter for exchanges?
Every major venue has to decide which version of Bitcoin's rules to run before miners begin signalling support, making custodians and spot ETF issuers effectively arbiters of which chain retail and institutional flow follows.
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How is this fork fight different from previous Bitcoin upgrade debates?
Most Bitcoin protocol debates have been settled through node-side coordination among developers and operators. BIP-110 pushes the decision upstream to venues and miners with a concrete public deadline attached.
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What does the recent network activity surge tell us?
Transaction counts have broken above trend for the first time since mid-2024, hitting their highest level in 18 months, though muted fees and range-bound prices show the market has not yet rewarded the surge.
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When do miners start signalling support for BIP-110?
Exchanges face an August deadline to settle their node policy first, and miner signalling on the proposal is expected to follow later in the year once venues have made their ruleset choice public.
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