Bitcoin faces two separate protocol events in August 2026: BIP-110, a temporary soft fork proposal targeting block 961,632 for mandatory signaling, and Paul Sztorc's eCash hard fork aimed at block 964,000 with a 1:1 airdrop to BTC holders. BIP-110, authored by Dathon Ohm and assigned in December 2025, would impose a one-year consensus soft fork restricting certain forms of arbitrary data storage in transactions, with supporters framing it as a response to incentives that expanded after the Ordinals and inscriptions wave beginning in 2022. The eCash fork, unrelated to BIP-110, is a scaling and sidechain project built around activating Drivechains on a new SHA-256d chain from day one. The compressed timing creates a concentrated test of Bitcoin's technical coordination, miner behavior, and governance processes, with both events landing within a narrow window of fewer than 2,400 blocks.
BIP-110 Targets Block 961,632 for Mandatory Signaling Phase
BIP-110, also known as the Reduced Data Temporary Softfork, is designed to move into a mandatory signaling phase at block 961,632, with that period running through block 963,647. During that window, nodes running BIP-110-compatible software, primarily Bitcoin Knots forks, would reject non-signaling blocks as invalid. The mechanism is intended to guarantee lock-in no later than block 963,648, with activation following after that. The proposal uses version bit 4 and allows early activation if 55% of miners signal within a retarget period, equal to 1,109 of 2,016 blocks. The design creates a period in which non-signaling can carry a direct economic cost for miners whose blocks are rejected by the portion of the network enforcing the rule set.
BIP-110 Restricts Transaction Behaviors for One Year
BIP-110's temporary rules would narrow several transaction behaviors for roughly 52,416 blocks, or about one year. Outputs with a ScriptPubKey greater than 34 bytes would become invalid, except for OP_RETURN, which would be capped at 83 bytes. Large data pushes and witness items would be capped at 256 bytes, while several Taproot-related features would face temporary restrictions. Inputs spending UTXOs created before activation would remain permanently exempt. The limits would also expire automatically after the one-year period, a design choice supporters frame as a temporary line rather than a permanent rewrite of Bitcoin's transaction policy.
Supporters and Critics Clash Over BIP-110 Impact
Supporters, including Bitcoin Knots users and Ocean pool participants, argue that BIP-110 would reduce blockchain bloat, lower node operating costs, and reinforce Bitcoin's monetary purpose. They frame the proposal as a corrective response to non-monetary data embedding and a cultural signal about what Bitcoin block space should be used for. Critics have warned that the proposal could fracture consensus, interfere with advanced scripting work, create uncertainty for developers, and set a precedent for protocol-level filtering of paid block space. Current miner signaling remains very low. On June 22, 2026, signaling stands at 0.31%, which makes the August deadline more consequential. At present, only 5.37 exahash per second (EH/s) of Bitcoin's 940 EH/s aggregate hashrate is signaling for BIP-110.
Paul Sztorc Announces eCash Hard Fork at Block 964,000
A separate August development, unrelated to BIP-110, is also nearing the spotlight. Paul Sztorc, the Drivechain and BIP 300 creator associated with Layertwo Labs, has announced plans for an eCash hard fork targeted around block 964,000 in August 2026. The plan would create a new SHA-256d chain beginning as a near-copy of Bitcoin Core, with a one-time difficulty reset at launch and a 1:1 airdrop to BTC holders based on the fork block. The eCash proposal is not a data-limit measure. It is a scaling and sidechain project built around activating Drivechains, or BIP 300 and BIP 301, on the new chain from day one. Sztorc has framed the effort as a path to ship functionality that has stalled on Bitcoin mainchain development, while giving holders a new asset at the split.
eCash Airdrop Creates Custody and Market Decisions
The 1:1 airdrop creates a pressure point. A hard fork that assigns eCash to BTC holders at the split would force exchanges, custodians, wallet providers, miners, and institutional holders to decide whether and how to recognize, secure, split, account for or ignore the new asset. The stakes differ from earlier fork cycles because bitcoin is now widely held through spot exchange-traded funds (ETFs), corporate treasuries, and regulated custody structures. The eCash plan has also drawn criticism over how Satoshi-era coins may be handled, with discussions describing a partial reassignment for development or community incentives. Critics have attacked that concept as unfair, while supporters, including Sztorc, argue the fork is voluntary, and holders can decide how to treat the new chain.
Miners Face Dual Incentives in Compressed August Window
The timing is what turns these two separate events into a dual pressure point. BIP-110's mandatory signaling window begins at block 961,632 and is designed to guarantee lock-in by block 963,648. The eCash fork is targeted near block 964,000, only a few hundred blocks later. In block-time terms, the two disputes are stacked into the same narrow period. For miners, the compressed window could create conflicting incentives. During BIP-110's mandatory signaling period, a miner may face pressure to signal bit 4 to avoid orphan risk from enforcing nodes. Shortly afterward, the eCash launch could offer a new SHA-256d chain with a difficulty reset and potential sidechain-related revenue. Because eCash includes a 1:1 airdrop, the planned launch is likely to draw more market and public attention than BIP-110. The fork gives miners a second economic incentive: They can direct the same SHA-256d hardware, or older machines, toward the new asset while also merged-mining sidechains secured through blind merged mining.
Exchanges and Custodians Prepare for Operational Pressure
For infrastructure, the burden may be heavier than the market narrative suggests. Exchanges and custodians could be asked to process coin-splitting requests, evaluate replay protection, identify the dominant Bitcoin chain if any BIP-110-related split occurs and explain policy decisions to users in real time. That operational layer matters because a protocol dispute becomes more than a technical debate once deposits, withdrawals, accounting treatment and user balances are involved. A tight period of stress can magnify small delays, unclear policies or conflicting chain signals. For markets, the setup is less directional than tense. A 1:1 eCash airdrop could encourage some holders to keep bitcoin through the fork block. BIP-110's contested enforcement path could push others to reduce exposure before the window, especially if exchanges warn of service suspensions, replay concerns, or custody delays.
What to Watch Before Block 961,632
What matters next is miner behavior heading into block 961,632, node adoption around BIP-110-compatible clients, exchange and custodian statements on eCash, and whether major infrastructure providers flag replay, deposit, withdrawal, or accounting risks before block 964,000. If those signals remain fragmented, August could become less about either proposal in isolation and more about how Bitcoin handles two distinct governance tests at once.
FAQ
What is BIP-110 and when does its mandatory signaling phase begin?
BIP-110, also known as the Reduced Data Temporary Softfork, is a draft proposal authored by Dathon Ohm and assigned in December 2025. The measure would impose a temporary one-year consensus soft fork on Bitcoin by restricting certain forms of arbitrary data storage in transactions. BIP-110 is designed to move into a mandatory signaling phase at block 961,632, with that period running through block 963,647. During that window, nodes running BIP-110-compatible software would reject non-signaling blocks as invalid.
What is Paul Sztorc's eCash hard fork and when is it targeted?
Paul Sztorc, the Drivechain and BIP 300 creator associated with Layertwo Labs, has announced plans for an eCash hard fork targeted around block 964,000 in August 2026. The plan would create a new SHA-256d chain beginning as a near-copy of Bitcoin Core, with a one-time difficulty reset at launch and a 1:1 airdrop to BTC holders based on the fork block. The eCash proposal is a scaling and sidechain project built around activating Drivechains, or BIP 300 and BIP 301, on the new chain from day one.
