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Bitcoin Core 30 to Increase OP_RETURN Data Limit After Developer Debate Concludes

Bitcoin Core 30 to Increase OP_RETURN Data Limit After Developer Debate Concludes

Yahoo10-06-2025
The developers of Bitcoin Core, the primary open-source software for connecting the blockchain behind the world's largest cryptocurrency, said October's version 30 release will increase the default limit for OP_RETURN data transactions from the current 80 bytes to nearly 4MB, a limit imposed by Bitcoin's block size.
The proposal for the change, which was confirmed in an update on GitHub, had sparked debate within the Bitcoin community. Critics argued that removing the limit could encourage increased embedding of arbitrary data, potentially leading to network spam and a shift from bitcoin's BTC primary function as a financial tool.
This decision to go ahead marks another significant moment in the community's debate about blockchain usage, highlighting persistent tensions between network efficiency, practical use cases and ideological principles.
The OP_RETURN code allows Bitcoin users to include data in transactions. The functionality is conceptually similar to, though technically distinct from, the way Inscriptions embed images and text directly into the blockchain using Ordinals and witness data.
Some argue that adding this transaction data is "arbitrary" and contradicts the original vision for the Bitcoin blockchain as proposed by Satoshi Nakamoto.
The 80-byte limit on OP_RETURN encouraged alternative methods of data storage, some of which caused issues like bloating the unspent transaction output (UTXO) set.
In a detailed GitHub summary and subsequent X post, Bitcoin Core developer Gloria Zhao outlined the reasoning behind the change.
Zhao emphasized the intention to mitigate unintended consequences of the existing limit, noting, 'The primary motivation for this [change] is to correct a mismatch between the harmfulness and standardness of data storage techniques.'
Developer Greg Sanders, who authored the merged pull request, said in GitHub discussions that the removal of the limit 'yields at least two tangible benefits: a cleaner UTXO set and more consistent default behavior.'
Zhao also addressed broader governance issues on her X page, highlighting Bitcoin Core's commitment to transparency and meritocracy.
She stressed the importance of the community's role in maintaining these principles, warning against the risks of social engineering or corporate pressure influencing the software developers' decision-making process.
'If Bitcoin Core's contributors ever abandon these values, e.g., to appease social media or corporate wishes, the community will switch to another node implementation that does it better,' Zhao wrote, urging users to remain vigilant and informed.
Developer Luke Dashjr has consistently opposed easing the limits, labeling the move as potentially harmful. He encouraged users to avoid upgrading to the new version or to adopt alternative node implementations, such as Bitcoin Knots.
The debate mirrors the controversies of 2023, notably around Ordinals and Inscriptions, when users embedded substantial non-financial data, such as images and text, into Bitcoin transactions, prompting similar concerns about blockchain misuse and network congestion.
Despite these concerns, Zhao maintained that attempts to censor transaction types through relay policy are impractical and ineffective against strong economic incentives. Bitcoin Core's approach should remain neutral, reflecting the network's foundational principles of censorship resistance and decentralization, she said.
The Core 30 release will retain manual control options, allowing users to enforce stricter limits through existing command-line parameters. However, these options are now marked as deprecated and will trigger warning messages, indicating potential removal in future updates without a set timeline.
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3 Reasons to Buy Bitcoin Before 2026
3 Reasons to Buy Bitcoin Before 2026

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3 Reasons to Buy Bitcoin Before 2026

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Crypto Currents: Trump signs executive order to allow crypto in 401(k) plans
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Trump's Bitcoin retirement order sets stage for billions in demand at seven-year low supply
Trump's Bitcoin retirement order sets stage for billions in demand at seven-year low supply

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Trump's Bitcoin retirement order sets stage for billions in demand at seven-year low supply

Retirement savers in the US will soon be able to passively invest in Bitcoin for their nest eggs. President Donald Trump on Thursday signed an executive order directing the Labor Department to make it easier for private equity, real estate, cryptocurrencies, and other alternative assets to be included in 401(k) retirement plans. It could channel fresh flows of billions of dollars into digital assets via regulated investment products like spot Bitcoin exchange-traded funds. The roughly $8 trillion held in 401(k) accounts, according to 2024 estimates by Bitwise, is one of the largest untapped markets for crypto exposure. Bloomberg estimates this number today to be even higher — around $12.5 trillion. While most portfolios remain concentrated in stocks and bonds, the policy shift opens the door for plan sponsors to offer funds linked to Bitcoin and other private assets. Even a modest allocation could have a market impact. Bitwise's Head of Research, Ryan Rasmussen, noted that just a 3% allocation of 401(k) assets to crypto would amount to about $240 billion in inflows. When factoring in its 60% market dominance, this equates to around $144 billion into Bitcoin alone. Supply crunch Those sums would be chasing a market where the liquid Bitcoin supply is already feeling a squeeze. Data from analytics firm CryptoQuant show that Bitcoin reserves on centralised exchanges have fallen to about 2.5 million, their lowest level in about seven years. At current prices, that's only $300 billion worth. If retirement-plan demand materialises through products like BlackRock's iShares Bitcoin Trust, issuers will need to secure the underlying coins to cover fresh investments. And ETFs aren't the only competitor. This also comes amid a growing trend of aggressive corporate treasury buying. Firms such as Strategy and Japan's Metaplanet have been making large-scale Bitcoin purchases for their balance sheets, often several times a month. Data from Bitcoin Treasuries shows 164 public and private companies now hold close to 1 million Bitcoin worth over $116 billion, approaching 5% of the total max supply. Kyle Baird is DL News' Weekend Editor. Got a tip? Email at kbaird@

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