Developers are split over a proposal to limit onchain data in Bitcoin transactions, with critics warning it risks censorship in the name of efficiency.
(Photo of Shubham Dhage on Unsplash)
Posted October 27, 2025 at 9:40 am EST.
Bitcoin proposal BIP-444 seeks to implement a temporary soft fork to curb certain transactions on the Bitcoin network by limiting arbitrary data storage on the blockchain.
The proposal, authored by the pseudonymous “dathonohm,” sparked a heated debate among Bitcoin developers and the wider community. If implemented, it would impose strict caps on data embedded in non-monetary transactions, such as NFTs, JPEGs, and memecoins.
Supporters, such as Bitcoin Knots creator Luke Dashjr, see it as a pragmatic and necessary intervention to prevent overload and potential legal liabilities, describing it as an imperfect but useful step to “buy time” for a better fix.
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Opponents warn that it risks undermining Bitcoin’s core permissionless principles by introducing censorship, arguing that it sets a dangerous precedent akin to state-controlled censorship of monetary transactions.
The soft fork is designed to be temporary, with a sunset clause after one year, but critics fear it might become permanent and stifle future innovation.
