Bitcoin Core’s OP_RETURN limit removal divides crypto community

Bitcoin Core’s reportedly planned removal of the long-standing OP_RETURN limit has sparked sharp division across the ecosystem.

The upcoming release will, by default, lift the 80-byte ceiling that previously restricted transaction-embedded data, positioning the change as a modernization of policy in response to shifting network practices.

OP_RETURN

Originally introduced as a soft deterrent, OP_RETURN allowed users to embed small, provably unspendable data without bloating the unspent transaction output (UTXO) set. The limit aimed to prevent abuse while enabling legitimate use cases such as timestamping or cryptographic commitments.

Yet the cap has increasingly proved ineffective. Developers, including Greg “instagibbs” Sanders, argued that determined actors bypassed restrictions through opaque alternatives that undermined network health.

In a public statement, Sanders noted that “large-data inscriptions are happening regardless,” adding that the existing ceiling merely shifted these activities into more damaging formats.

Bitcoin Core’s policy shift removes what was seen internally as an outdated and counterproductive rule. Pull requests #32359 and #32406 formalized the change, with the latter also deprecating the “-datacarriersize” parameter.

These moves align Core’s behavior more closely with how miners and other node implementations already operate. Unlike consensus rules, which govern what can be included in blocks, standardness rules such as the OP_RETURN cap primarily dictate how transactions are relayed across the peer-to-peer network.

OP_RETURN limit removal

As such, removing the ceiling does not force consensus but recalibrates policy to match real-world conditions.

Criticism has nonetheless been vocal. Some prominent figures view the decision as undermining Bitcoin’s minimalist ethos. Luke Dashjr, maintainer of Bitcoin Knots, an increasingly popular alternative client with almost 5% of nodes, described the removal as “utter insanity.”

Samson Mow, CEO of Jan3 and an outspoken Bitcoin advocate, suggested operators who wish to reject the change can do so by running Knots or staying on older versions of Bitcoin Core.

Per Mow, maintaining stricter relay policies is essential to preserve Bitcoin’s role as a global, censorship-resistant monetary network.

However, Mow pragmatically commented that the removal of the limit has its advantages,

“Delete the cap. Aligns default policy with actual network practice, minimises incentives for harmful workarounds, and simplifies the relay path.

Option 3 earned broad, though not perhaps unanimous, support. Dissenting parties remain free to modify software, run stricter policy, or propose new resource limits if empirical harm emerges.”

Supporters believe policy rules should reflect prevailing miner behavior and avoid pushing users toward what Mow called “harmful workarounds.”

They argue that with blocks still subject to four million weight units, dust limits, and other constraints, fears of unchecked data spam are overstated.

Removing arbitrary barriers, they contend, makes relay and fee estimation more predictable and encourages cleaner data use by consolidating inscriptions into provably unspendable OP_RETURN outputs rather than misusing spendable script paths.

OP_RETURN vs OP_CAT

The timing of the OP_RETURN policy shift coincides with growing momentum for more ambitious protocol upgrades. OP_CAT, a once-disabled opcode assigned to OP_SUCCESS126 in BIP-347, has advanced from meme status to serious consideration.

Backed by developers and industry research, OP_CAT would enable covenants, allowing conditional spending and advanced scripting without undermining Bitcoin’s core ruleset.

Galaxy Digital’s research team positioned OP_CAT and OP_CTV as straightforward enhancements with major implications for DeFi applications such as bridges and vaults. With discussions on activation paths ongoing, OP_CAT’s trajectory suggests Bitcoin’s programmability may soon expand further.

Together, the changes showcase a deeper tension around Bitcoin’s identity.

Supporters of more permissive data policies see the evolution as pragmatic, reflecting the realities of usage and miner preferences.

Critics argue it risks diluting Bitcoin’s monetary purity and opening the door to on-chain clutter that could degrade performance over time. Bitcoin’s decentralized governance ensures no single path will prevail unchallenged.

Node operators retain the ability to enforce stricter standards through alternative implementations like Bitcoin Knots, while developers remain cautious about making consensus-level adjustments without clear support.

The removal of OP_RETURN limits marks a policy recalibration rather than a consensus overhaul. Yet it feeds into broader discussions that could shape Bitcoin’s direction heading into 2026, as programmability, scalability, and philosophical priorities converge in a new debate phase.

Bitcoin’s price has remained steady at around $94,300 as the removal of the OP_RETURN cap comes closer to realization.

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