- A major Bitcoin update will raise the OP_RETURN limit from 80 bytes to 4MB, sparking fierce debate.
- Supporters cite user freedom, critics warn it threatens Bitcoin’s simplicity and sound-money design.
The Bitcoin [BTC] core development team is proposing a major update to the OP_RETURN function, aiming to significantly increase its data storage limit in the next software release.
This move has brought back long-standing tensions within the community.
Supporters view the change as a win for innovation and user autonomy, while critics warn it could bloat the blockchain and erode Bitcoin’s core mission as a lean, sound-money protocol.
As the update looms, the community finds itself once again at an impasse.
What is OP_RETURN, and why does it matter?
OP_RETURN is a feature in Bitcoin that lets users attach extra data, like text, images, or code, to transactions.
Until now, this was limited to 80 bytes, which allowed for basic uses like simple NFTs and Ordinals.
But with a Bitcoin upgrade planned for October, that limit will jump to 4 megabytes (MB).
Supporters believe this will unlock more advanced on-chain applications and transform Bitcoin from a simple payment system into a platform for richer digital expression.
The case for raising the limit
Proponents of the update argue it’s a matter of freedom and functionality.
Developers like Peter Todd and Gloria Zhao believe Bitcoin should empower users to define how they use the network, whether for financial transactions, digital collectibles, or archival documents.
In a GitHub statement, Zhao said,
“Demanding that Bitcoin Core prevent certain transactions from being mined reflects a misunderstanding of the relationship between open source software users and developers.”
The hands-off philosophy asserts that Bitcoin Core shouldn’t dictate use cases. Instead, the market should decide what gets stored on-chain.
Advocates see this upgrade as a way to expand Bitcoin’s role in the digital world, making it more versatile and useful beyond just payments.
As new technologies emerge that require more on-chain data capacity, this shift could help Bitcoin stay relevant and support broader digital use cases.
A community divided
The proposed OP_RETURN update has triggered a wave of dissent from Bitcoin veterans, who view the change as a betrayal of core principles.
Dennis Porter, CEO of the Satoshi Action Fund, expressed disillusionment, stating,
“My faith in their work is now broken.”
This comes after he’d helped raise over $200,000 for Bitcoin Core developers.
Source: X
Jason Hughes, VP at Ocean mining firm, echoed the sentiment, hinting at his exit from the space. He stated,
“I’m out of energy on this fight.”
