TL;DR
- Fork Threat Intensifies: Leonidas pledges to fund a Bitcoin Core fork if developers censor Ordinals and Runes, aiming to preserve Bitcoin’s censorship-resistant principles.
- Node Migration Signals Shift: Bitcoin Knots now powers over 4,380 nodes, reflecting growing discontent with Bitcoin Core’s direction ahead of the v30 update.
- Fee Debate Highlights Volatility: Ordinals have generated $500 million in fees, but daily earnings fluctuate wildly, raising questions about long-term sustainability.
A public letter from Leonidas, a key member of the Bitcoin Ordinals community, has sparked intense discussion about censorship and decentralization in the Bitcoin ecosystem. The developer warned that any attempt to restrict Ordinals and Runes transactions could lead to a community-backed fork of Bitcoin Core. His statement comes ahead of the anticipated v30 update, which would lift the 80-byte limit on the OP_RETURN function, enabling more robust on-chain media storage.
Threat of Fork Over Censorship Concerns
Leonidas, host of The Ordinal Show, posted an open letter on X threatening to fund an open-source fork of Bitcoin Core if developers reverse the upcoming update. He argued that censoring non-financial transactions like images and documents would set a “dangerous precedent.” The proposed fork would remove most policy rules, reinforcing Bitcoin’s censorship-resistant ethos. Leonidas claimed that thousands of users would adopt the fork to demonstrate their commitment to decentralization.
Rising Tensions Within the Bitcoin Community
The letter directly addressed remarks made by Blockstream CEO Adam Back, who referred to Ordinals and Runes transactions as spam. Back and other Bitcoiners, including Ocean Mining creator Luke Dashjr and Satoshi Action Fund CEO Dennis Porter, believe such data-heavy transactions dilute Bitcoin’s core purpose. The debate centers on whether Bitcoin should remain strictly a peer-to-peer financial infrastructure or evolve to accommodate broader use cases.
Bitcoin Knots Gains Momentum
As the controversy unfolds, Bitcoin Knots has seen a surge in adoption. Starting with only 67 nodes in March 2024, it has now grown to over 4,380 nodes, which is more than 18% of the network. This growth reflects mounting dissatisfaction with Bitcoin Core’s direction and signals a potential shift in node operator preferences ahead of the v30 release scheduled for October 30.
Economic Impact of Ordinals and Runes
Leonidas emphasized the financial contribution of Ordinals and Runes, citing over $500 million in transaction fees that have bolstered Bitcoin’s security. He claimed to have spoken with miners representing more than 50% of the network’s hash rate, who support any transaction type as long as fees are competitive. However, Ordinals activity has proven volatile, with daily fees ranging from just $3,060 to a peak of $9.99 million in December 2023.
