Bitcoin Core Devs Axe OP_RETURN in Upcoming Upgrade—Data Inscriptions Take a Hit

Bitcoin’s next protocol update just got controversial. Core developers are gutting OP_RETURN—the scripting function that turned BTC into a makeshift data-storage network. Expect fireworks from Ordinals traders and BRC-20 degens.

Why this matters: That 80-byte sandbox fueled everything from NFT-like inscriptions to token experiments. Now it’s getting the scalpel treatment—officially to ’preserve blockchain purity,’ unofficially because devs hate cluttering their precious ledger with cat JPEGs.

The fallout? So-called ’digital artifacts’ just became harder to mint. Cue the usual suspects screaming about censorship—while Wall Street quietly applauds anything that makes crypto behave more like a ’real’ asset (read: boring).

Memo to Bitcoin maximalists: Your ’digital gold’ narrative won. Enjoy explaining why innovation now requires moving to Ethereum.

Bitcoin Knots, a more customizable fork of Bitcoin Core, appeals to users seeking greater control over what their nodes relay or store, including allowing users to reject non-payment transactions like inscriptions.

Some prominent thought leaders in the industry, like Samson Mow, are encouraging node operators not to upgrade their version of Bitcoin Core, or use Knots instead.

Sanders defended the removal of the cap as aligned with Bitcoin’s ethos: minimal, transparent rules.

“By retiring a deterrent that no longer deters,” he wrote, “Bitcoin Core lets the fee market arbitrate competing demands.”

But that isn’t bringing much consensus.

“This marks a fundamental shift in the direction of Bitcoin,” one commenter warned on GitHub.

"This is the largest mistake Core can make at this juncture," another on Github added. “I want to be on the record saying that.”