Key Takeaways
- Peter Todd proposed removing OP_RETURN size limits to simplify Bitcoin's code and support sidechain use cases.
- Critics argue the change could shift Bitcoin away from its core monetary function.
- The debate recalls the 2014 OP_RETURN controversy that led to data cap reductions.
Bitcoin Core developer Peter Todd has sparked a contentious debate with a proposal to lift the 80-byte size cap on OP_RETURN, a field that allows embedding data into Bitcoin transactions.
The proposal, filed on GitHub as #32359, aims to remove what Todd describes as arbitrary restrictions that complicate Bitcoin’s codebase.
Arguments for the proposal
Todd argued that OP_RETURN outputs don’t bloat the UTXO set and are already being bypassed by workarounds, stating:
The restrictions are easily bypassed by direct substitution and forks of Bitcoin Core.
He also highlighted the benefits to sidechain and cross-chain bridge applications, suggesting that formalizing higher limits would reflect real-world usage without harming Bitcoin’s integrity.
Criticism & concerns
However, critics see the change as a threat to Bitcoin’s core mission as a decentralized monetary system.
Willem S, founder of Botanix Labs, cautioned:
Sidechain builders shouldn’t influence Bitcoin Core. Bitcoin on its base layer is money and should be only focused on money.
Jason Hughes from Ocean Mining was more direct, claiming the proposal could devalue Bitcoin entirely:
Bitcoin Core developers are about to merge a change that turns Bitcoin into a worthless altcoin, and no one seems to care.
Historical context
The controversy recalls the 2014 “OP_RETURN Wars,” when spam concerns prompted a temporary data cap reduction.
While some view the change as a modernization step, others fear it risks turning Bitcoin into a platform for non-monetary uses, undermining its foundational principles.
