Bitcoin BIP-110 Fork Risks Replay Attacks on Unwary Holders

Bitcoin developer Kevin Loaec issued a warning as the network approaches block 961,632, the point at which nodes enforcing the BIP-110 proposal will begin rejecting non-signaling blocks. The proposal, which aims to restrict non-payment data on the blockchain for one year, has failed to gain significant miner support, with signaling currently hovering near 2.6%—far below the 55% threshold required for smooth activation.

Should a minority chain emerge, it would share the same transaction history as the main network at the moment of separation. This creates a trap: a buyer could copy a transaction used to trade forked tokens and replay it on the main Bitcoin ledger. If the network validates the signature, the seller would lose an equivalent amount of genuine BTC. While this does not compromise an entire wallet, it drains the specific inputs included in the transaction.

Critics, including Blockstream’s Adam Back and MicroStrategy’s Michael Saylor, have voiced opposition to the proposal, labeling it a dangerous precedent for censorship. As the mandatory signaling window opens, those unfamiliar with the technical process of splitting balances are advised to leave their holdings unmoved. Until wallet providers or exchanges implement secure separation tools, interacting with the forked asset remains a high-risk maneuver for retail holders.