The activation date for the code has not yet been set, and Guida described it as a contingency measure for unforeseen circumstances, not an inevitable fork. The public release of the codebase still raises the stakes around BIP-110—a proposed temporary soft fork that would limit the amount of non-financial data embedded in Bitcoin transactions and could place rule-enforcing nodes on a separate chain if miners refuse to cooperate.
Guida Revives Bitcoin's 'Nuclear Option'
Guida has ported the proof-of-work algorithm change code, written by Bitcoin developer Luke Dashjr in 2017, to the modern Bitcoin Knots codebase. The public branch adapts the old concept to modern software and includes changes to mining validation, consensus settings, block handling, chain parameters, and functional tests. On August 4th, Guida informed the public that the code is being kept "in reserve" in case miners block or delay the implementation of BIP-110.
"People seem to think the goal is to get this proof-of-work change to go into effect immediately," the developer wrote. "That's not the case. This is just code we're keeping in reserve in case miners betray Bitcoin, to activate it later."
The goal is to provide BIP-110 supporters with an escape route from the computational power controlled by existing miners. The new proof-of-work (PoW) algorithm would prevent modern specialized Bitcoin mining devices from immediately dominating a forked chain. Guida stated he expects miners to support a smooth BIP-110 activation, while Dashjr doubled down, calling "Core a scamcoin," making it clear that in his view, the battle is far from over.
Ordinals Continue to Appear as Bitcoin's Largest Players Remain Silent
Those supporting Ordinals, Runes, and other arbitrary data on the blockchain have made their stance clear just before the mandatory signaling window begins. At block height 961,278, the MARA pool mined a block containing just two transactions, one of which embedded a vintage-style Pepe the Frog image. "Seriously, MARA?" one user wrote. "3.85 MB of space for this? People use Slipstream for this..."
Within Bitcoin's infrastructure, preparations for BIP-110 adoption have been surprisingly quiet. Major mining pools, including MARA Pool, Antpool, F2Pool, ViaBTC, and others, have communicated little, while support has primarily come from smaller operators like SoV, Roughnecks, and Sympatheia. Exchanges and custodians have also largely remained silent. Bitcoin.com News previously reported that Australian Bitcoin platforms Bitaroo and Hardblock are among the few to have publicly disclosed contingency plans.
BIP-110 Pushes Miners Towards a Deadline
BIP-110, officially called the "Reduced Data Temporary Softfork," would tighten Bitcoin's rules on arbitrary data for roughly one year. It would restrict certain continuous data, reduce the permissible script size, and restore the 83-byte consensus limit for OP_RETURN—a transaction field that can be used to attach data. Supporters argue these limits would refocus the base layer on financial activity and reduce legal or operational risks for node operators.
For early lock-in, the proposal requires 55% miner signaling, or 1,109 out of 2,016 blocks. If that threshold isn't met, the mandatory signaling window begins at block 961,632, expected this weekend, August 8 or 9. Nodes supporting BIP-110 will reject blocks not signaling support; lock-in is expected by block 963,648 at the latest, with activation scheduled around block 965,664.
Voluntary signaling levels remain low, even though the adoption rate of Bitcoin Knots among reachable nodes appears higher. This gap matters because miners provide the computational power needed to advance the chain, while nodes independently decide which blocks and rules they accept. When miners and a significant group of nodes follow incompatible rules, Bitcoin can split into competing chains, leaving businesses and users to decide for themselves which chain they recognize.
Switching PoW Algorithms Would Make Today's ASICs Obsolete
Bitcoin currently uses double SHA-256, known as SHA-256d, as its PoW algorithm. Specialized devices called Application-Specific Integrated Circuits (ASICs) perform these calculations far more efficiently than general computers and account for virtually all modern Bitcoin mining. Changing the algorithm would make these devices ineffective on the new chain unless developers choose a compatible replacement.
Guida's code allows for a future hard fork to change the algorithm after a configurable period. Available options include SHA-256, SHA-256d, RIPEMD-160, and HASH160, although the mainnet settings by default have no fork date set. Any actual launch would require developers and users to agree on an algorithm, activation time, software release, and coordination plan. No such schedule currently exists.
The first block generated using the new algorithm will receive a mining target that, by default settings, will be approximately 1 million times easier. This reset is meant to help a chain with little initial computational power generate blocks instead of stalling. The normal difficulty rules will then resume. Supporters view this mechanism as leverage against miners, while critics say it could destroy mining investments, fragment liquidity, and produce a minority cryptocurrency with weak infrastructure support.
Lightning Network Operators Take Steps to Limit Fork Risk
A proof-of-work (PoW) fork would create complications extending far beyond mining. Start9 warned that Lightning Network channels opened before the split could be difficult to restore or migrate, as their pre-signed transactions, timelocks, and penalty rules were built on a shared chain history. A slow-moving or reorganized chain could lock up channel balances or expose users to disputes over older channel states.
Start9 advised users to consider cooperatively closing channels before the mandatory signaling window begins and reported closing its own company node's channels as a precaution. Closing a Lightning Network channel typically returns funds to regular on-chain outputs controlled by the user's keys. Exchanges, custodians, and payment services will have to make separate decisions regarding deposits, withdrawals, confirmation requirements, and replay protection—which prevents a transaction from being copied from one chain to another.
The Next Bitcoin Battle: Who Makes the Rules
This dispute revives debates from the 2017 block size war, where users promoted a User Activated Soft Fork (UASF) mechanism as a check on miner power. BIP-110 supporters argue that economic nodes determine Bitcoin's rules and should be able to reject miners who don't adopt them. Opponents contend that this activation approach is aggressive and that miners following the existing consensus are not harming the network.
For now, the proof-of-work (PoW) algorithm change branch developed by Guida remains an unused contingency. The immediate test will be whether Bitcoin miners alter their signaling behavior during the mandatory period and whether rule-enforcing nodes remain on a viable chain. The next signals to watch for are official Bitcoin Knots releases, miner support, Lightning channel closures, exchange policies, and any steps to give the hard-fork code a specific algorithm or activation date.
At the time of writing, as of block 961,425 at 8:15 AM EDT on Friday, August 7, 2026, only 207 blocks remain until the start of the mandatory period at block 961,632. The numbers speak for themselves. Only 47 out of 1,818 blocks have signaled support for BIP-110, leaving the current share of signals stuck at about 2.59%.
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