Key Highlights:
- Bitcoin Core aims to eliminate the OP_RETURN limit, triggering a debate on the balance between data transparency and potential risks to the network.
- Core contributor Greg Sanders asserts that this change will enhance the UTXO set and harmonize operations.
- Critic Luke Dashjr warns that removing this limit could open the floodgates to spam and stray from Bitcoin’s objective.
The ongoing discussion regarding Bitcoin’s OP_RETURN is intensifying, as developers of Bitcoin Core—which maintains the predominant node software—have expressed intentions to eradicate the OP_RETURN restriction in the forthcoming release.
The OP_RETURN limit enforces an 80-byte ceiling on any extraneous data that users can include in a Bitcoin transaction via an unspendable output field.
“Large-data inscriptions are occurring regardless and can manifest in varying degrees of harmful ways,” expressed Core contributor Greg Sanders, also known as ‘instagibbs’, in a GitHub post announcing the adjustment. “This limit merely directs them into less transparent forms that could harm the network.”
“Large-data inscriptions are occurring regardless and can manifest in varying degrees of harmful ways.”
The debate revolves around whether the removal of the OP_RETURN limit will promote data transparency and simplify Bitcoin’s information usage, or whether it raises concerns about potential abuses, spam, and a deviation from Bitcoin’s financial intentions.
Additionally, Sanders noted that the enforcement of the cap has fostered counterproductive behaviors, compelling users to embed data in bogus public keys or spendable scripts instead. He posits that removing this limitation could lead to “two substantial benefits: a cleaner UTXO set and more dependable default behaviour.”
However, not all parties are convinced. Core developer Luke Dashjr has consistently criticized data storage methods as spam, openly decrying the proposed elimination as “madness.”
In the midst of the ongoing debates, Bitcoin Knots, also sustained by Dashjr, has been experiencing a boost in usage, now accounting for approximately 5% of all nodes.
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Bitcoin Knots is a more adaptable version of Bitcoin Core, catering to users who demand enhanced control over their nodes’ behavior, including the option to dismiss non-payment transactions such as inscriptions.
Certain influential figures in the industry, like Samson Mow, are advocating for node operators to either refrain from updating to the latest Bitcoin Core version or opt for Knots instead.
“Bitcoin Core has announced they will remove the OP_RETURN limit in their next release. Many users find this to be an undesirable change for a number of reasons. You can refuse to upgrade and stay on 29.0 or run another implementation like @BitcoinKnots.” — Samson Mow (@Excellion) May 5, 2025
Sanders defended the decision to lift the limit as resonating with Bitcoin’s philosophy of minimal, clear regulations. He stated, “By abolishing a deterrent that has ceased to act as one, Bitcoin Core allows the fee market to mediate diverging demands.”
Nonetheless, this decision has not achieved uniform approval. One user on GitHub cautioned, “This marks a fundamental shift in Bitcoin’s trajectory.” Another added, “This is the greatest misstep Core could take at this point.”
