The ongoing debate surrounding Bitcoin’s OP_RETURN feature has intensified, with developers of Bitcoin Core, the most widely used node software, announcing their intention to eliminate OP_RETURN entirely in the upcoming release.

OP_RETURN currently imposes an 80-byte limit on the arbitrary data that can be included in a Bitcoin transaction through a special, unspendable output field. Core contributor and Blockstream engineer Greg Sanders, also known as ‘instagibbs,’ stated on Github that large data inscriptions are already occurring and can be executed in potentially damaging ways, regardless of the cap. Removing the limit, according to Sanders, would lead to a cleaner UTXO set and more consistent default behavior.

The discussion revolves around whether lifting the 80-byte OP_RETURN limit enhances transparency and facilitates data use on the Bitcoin network or if it opens the door to abuse, spam, and a shift away from Bitcoin’s core financial focus. While some, like Sanders, believe that removing the cap aligns with Bitcoin’s ethos of minimal, transparent rules, others, such as Core developer Luke Dashjr, view inscriptions as spam and have criticized the decision as “utter insanity.”

Amid the debate, Bitcoin Knots, an alternative version of Bitcoin Core maintained by Dashjr, has gained traction, capturing around 5% of all nodes. Bitcoin Knots offers users more control over what their nodes relay or store, allowing them to reject non-payment transactions like inscriptions. Influential figures in the industry, such as Samson Mow, are urging node operators not to upgrade their Bitcoin Core version or to switch to Knots instead.

As the community remains divided over the removal of the OP_RETURN cap, with some applauding it as a testament to Bitcoin’s evolving ethos and others warning of a fundamental shift in direction, the controversy persists.