Saylor Slams BIP-110 Again as Bitcoin Governance Debate Heats Up
Michael Saylor posted on social media platform X today, July 21, 2026, about his thoughts on the governance of Bitcoin. His opinion about BIP-110 could not be clearer. According to him, BIP-110 is the incorrect solution to the problem of contentious utilization of Bitcoin. This BIP suggests a temporary limitation of specific types of non-monetary information that can be posted on the Bitcoin blockchain.
What BIP-110 Means
BIP (Bitcoin Improvement Proposal) is a proposal that aims to limit the amount of arbitrary data which may be included in Bitcoin transactions. Its objective is to make Bitcoin transactions more monetary in its nature and less inscription-friendly. The proponents of BIP-110 see it as an effective way to reduce spam.
Why Saylor is Opposed
This is not the first time that Saylor has publicly opposed the BIP-110. Just a few days back he posted 110 reasons why Bitcoin needs guardians of neutrality. Saylor’s main argument is that Bitcoin should stay neutral. He says changing the rules is just because some users dislike how others are using the network foes against Bitcoin’s core spirit of free markets, property rights, and permissionless innovation. In his view, the network should turn a disagreement about use cases into a hard rule written into consensus.
He also argues that Bitcoin’s base layer should only be changed for clear and serious failures, not for contested behaviour that still follows the rules and pays fees. This is a key line in this fight. Saylor does not frame the issue as “good use versus bad use,” but as “neutral rules versus social enforcement.”
What Supporters Want
Backers of BIP-110 say they are trying to protect Bitcoin and not weaken it. They argue that unrestricted data storage can bloat the blockchain, increase burdens on full nodes, and distract Bitcoin from its role as sound money. They also believe the proposal could reduce pressure from non-monetary traffic and make payments more efficient.
In that sense, supporters see BIP-110 as a clean-up move. They want to draw a firmer line between Bitcoin as money and Bitcoin as a general-purpose data layer. For them, the proposal is less about censorship and more about protecting the network’s original mission.
Why It Matters?
This is bigger than one proposal. BIP-110 has become a test of how Bitcoin should evolve, through strict neutrality, or through rules that try to filter out uses some users consider harmful. If the network starts changing consensus to block one category of valid activity, critics worry that future changes could follow the same path.
This is why Saylor called the proposal more dangerous than the problem it is trying to solve. He is basically warning that the cure has the capability to do more damage than the condition.
Strategy Boosts Reserve, Schiff Criticizes
In other news, Strategy says it has increased its USD Reserve by $225 million, lifting total cash support to about $3.2 billion as of July 19, 2026. The company also said it holds 843,775 BTC in its reserve and that its dividend coverage now stands at 1.8 years through USD reserves and 31 years through its Bitcoin reserve.
The update gives Strategy more breathing room as it balances Bitcoin exposure with preferred-share obligations. For supporters, the move signals careful treasury management and a stronger cushion for payouts. For critics, it shows the company is leaning harder on financial structure instead of pure Bitcoin upside.
Peter Schiff quickly pushed back, accusing Strategy of sacrificing common shareholders to protect preferred holders. He said the company seems scared that Bitcoin demand may not absorb more sales, and argued that avoiding BTC sales creates a negative Bitcoin yield.
This debate points to Strategy’s model, where aggressive Bitcoin acquisitions leverage debt, while a dedicated cash buffer is maintained to service dividend obligations and stabilize the balance sheet.
