Developers behind Bitcoin’s proposed BIP-110 soft fork have postponed its planned activation after a significant security vulnerability affecting Coldcard wallets raised fresh concerns across the Bitcoin ecosystem.
The delay comes at a time when confidence in the proposal was already under pressure, as the upgrade struggled to gain sufficient backing from miners. Together, the security incident and lack of network consensus have cast uncertainty over whether BIP-110 will eventually become part of Bitcoin’s protocol.
The immediate catalyst for the delay was the discovery of a flaw in certain Coldcard wallet implementations that reportedly made some users’ Bitcoin easier to steal.
Blockchain analytics platform Onchain Lens estimates that attackers have already drained at least $88.6 million through exploits linked to the vulnerability.
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The incident has reignited long-standing debates about the importance of wallet security, software audits, and the potential consequences of introducing protocol changes during periods of heightened ecosystem risk.
BIP-110 was designed as a soft fork that would temporarily restrict the amount of data that can be embedded within Bitcoin transactions. Supporters argued that limiting transaction data would help preserve Bitcoin’s efficiency, reduce blockchain bloat, and discourage non-financial data from occupying valuable block space.
Critics, questioned whether such restrictions were necessary, warning that they could reduce flexibility for legitimate applications built on Bitcoin while introducing additional complexity to the network.
Even before the Coldcard issue emerged, BIP-110 faced an uphill battle in securing the level of miner support required for activation.
Under the proposal’s activation rules, at least 55% of mined blocks needed to signal support before the upgrade could proceed. Network statistics showed that only 2.63% of blocks had indicated approval, leaving the proposal far from the threshold required for implementation.
The weak signalling reflects broader divisions within the Bitcoin community over the proposal’s objectives and timing. Bitcoin’s governance model relies heavily on rough consensus among developers, miners, node operators, businesses, and users.
Without broad agreement across these groups, even technically sound upgrades often struggle to gain traction. The low signalling rate suggests that many miners either remain unconvinced of BIP-110’s benefits or prefer to delay any protocol changes until broader consensus emerges.
In response to the latest developments, developers have advised node operators participating in the activation process to revert to the standard Bitcoin software before the next activation phase begins.
This recommendation is intended to minimize operational risks while the Coldcard security issue is investigated and while the future of the proposal is reassessed. Returning to the standard software also helps maintain network stability by ensuring that participants remain aligned on Bitcoin’s existing consensus rules.
The postponement highlights how closely technical security and governance are intertwined within decentralized networks. A protocol upgrade may appear unrelated to an external wallet vulnerability, yet significant security events can quickly reshape community priorities.
Rather than pushing forward with a contentious activation during a period of uncertainty, developers have chosen a more cautious approach that prioritizes user protection and network stability. Whether BIP-110 ultimately moves forward remains unclear.
With miner support well below the required threshold and confidence shaken by the Coldcard exploit, the proposal now faces both technical and political challenges.
For the moment, Bitcoin’s existing rules remain unchanged, while developers, miners, and node operators continue evaluating the proposal’s future amid renewed focus on ecosystem security and consensus-driven governance.