Executive Summary
The Story So Far
Why This Matters
Who Thinks What?
A prominent leader in the Bitcoin Ordinals community, Leonidas, has threatened to fund an open-source fork of Bitcoin Core if developers reverse an upcoming update that permits more Ordinals and Runes transactions. The warning, issued on X (formerly Twitter), comes amidst a contentious debate within the Bitcoin community regarding the censorship or prioritization of non-financial transactions, which critics often label as “spam.” Leonidas argues that any move to restrict these transactions would establish a “dangerous precedent” against Bitcoin’s fundamental censorship resistance.
The Fork Threat and Censorship Concerns
Leonidas, host of The Ordinal Show, explicitly stated that the “DOG Army” would fund the development and maintenance of an open-source fork of Bitcoin Core. This fork would aim to strip out nearly all policy rules, sending a clear message that Bitcoin must remain censorship-resistant. His letter was prompted by fears that the community might overturn an imminent update.
The core of the dispute revolves around whether Bitcoin node validators should prioritize traditional peer-to-peer financial transactions. Opponents of Ordinals, Runes, and other large data transactions, such as images or documents, view them as an inefficient use of block space.
Community Divide and Key Voices
Blockstream CEO Adam Back has voiced strong opinions against these types of transactions, asserting they are “spam” and have “no place in the timechain.” This sentiment represents a significant faction within the Bitcoin ecosystem that believes the network should primarily serve its original purpose of financial transactions.
Amidst this debate, Bitcoin Knots, an alternative client to Bitcoin Core, has seen a notable increase in adoption. Its node count surged from 67 to over 4,380, now representing more than 18% of the network. This growth suggests a segment of the community is seeking alternatives or expressing discontent with the direction of Bitcoin Core.
Upcoming Bitcoin Core Update and Its Implications
The controversy is heightened by the impending release of Bitcoin Core’s v30, scheduled for October 30. This update is designed to remove the 80-byte limit on the OP_RETURN function, which would significantly increase the capacity for storing media files directly on the blockchain. Leonidas’s threat is a direct response to concerns that this update might be reversed or its effects mitigated due to community pressure.
He contends that the Ordinals and Runes ecosystems have already injected over $500 million in transaction fees, crucial for bolstering Bitcoin’s security. This contribution is particularly significant as the Bitcoin mining block subsidy continues to halve approximately every four years, making transaction fees an increasingly vital component of miner revenue.
Miner Support and Fee Volatility
Leonidas claims to have engaged with Bitcoin miners who collectively represent over 50% of the network’s hash rate. According to his statements, these miners would continue to accept any transaction, provided the associated fees are competitive.
However, the reliance on Ordinals transaction fees has proven to be inconsistent. Data from Dune Analytics indicates significant seasonality in activity. For instance, on August 31, Bitcoin miners earned only $3,060 from Ordinals, a stark contrast to the record daily high of $9.99 million recorded on December 16, 2023. Even in 2025, the highest daily total has not surpassed $1 million, suggesting that Ordinals are not consistently occupying as much block space as they once did.
The ongoing dispute highlights a fundamental tension within the Bitcoin community: balancing the network’s foundational principles of censorship resistance and decentralization with evolving use cases and economic models. The outcome of this debate, particularly concerning the v30 update and any potential policy changes, could have significant implications for Bitcoin’s future development and perceived utility.
