Foundry Puts BIP-110 Soft Fork to Miner Vote Amid Network Debate

Miner Democracy in Motion

In a significant development for decentralized governance, Foundry Digital—the largest Bitcoin mining pool—has initiated a hashrate-based vote among its clients regarding the contentious BIP-110 soft fork proposal. This move underscores the growing influence of miners in shaping Bitcoin’s protocol direction.

What Is BIP-110?

BIP-110, also dubbed the 'reduced data temporary soft fork,' aims to curb the volume of non-financial data embedded in Bitcoin transactions. Proponents argue it refocuses Bitcoin on its core monetary use case by limiting OP_RETURN outputs and other data-carrying mechanisms that some view as network bloat.

The proposal introduces specific constraints: restricting most new transaction outputs to 34 bytes, reinstating an 83-byte cap on OP_RETURN, and rejecting data pushes exceeding 256 bytes. These measures are designed to be temporary, with the intention of preserving network performance without permanently altering Bitcoin’s flexibility.

Governance Through Hashrate

Foundry’s voting mechanism ties each participant’s influence directly to their contribution to the pool’s overall hashrate over a defined period. Votes are weighted based on average performance between July 6–15, ensuring that those with greater skin in the game have proportionally higher say.

As of now, Foundry’s default stance is against the proposal. Only if more than 51% of the weighted hashrate votes in favor will the pool begin signaling 'Yes' for inclusion in mined blocks. With approximately one-third of global Bitcoin hashrate under its control, Foundry’s decision carries substantial weight in determining whether this soft fork gains traction.

Market & Technical Implications

• Short-Term: The debate around BIP-110 highlights ongoing tensions within the Bitcoin ecosystem about scalability, utility, and ideological purity. Depending on the result, we may see increased scrutiny of future data-inclusion proposals.
• Long-Term: Should BIP-110 activate, it could set a precedent for managing network congestion while reinforcing Bitcoin’s role primarily as digital gold rather than a general-purpose data layer.

Critics like Michael Saylor and Adam Back warn that such changes risk turning policy disagreements into technical enforcement issues, potentially invalidating legitimate fee-paying transactions. Their concerns reflect broader questions about who gets to define Bitcoin’s roadmap and how consensus is achieved.

Outlook

The signaling window ends in early August, making this a critical juncture for both developers and miners alike. Regardless of the outcome, Foundry’s initiative marks a milestone in participatory governance models for proof-of-work networks. It sets a precedent for transparent engagement between infrastructure operators and stakeholders—an evolution worth watching closely in the months ahead.

Source: Bitcoin Magazine