What happened?
Ordinal’s ecosystem leader, Leonidas, has threatened to fund a Bitcoin Core fork if developers attempt to censor Ordinals and Runes transactions. This comes in response to the upcoming controversial v30 upgrade scheduled for October 2025. The upgrade aims to remove the 80-byte OP_RETURN limit, potentially increasing on-chain data capacity to nearly 4MB per transaction.
Who does this affect?
This development directly affects Bitcoin Core developers, supporters of Ordinals and Runes, as well as the overall user base of Bitcoin. Notably, it can stir division among twenty Bitcoin startups and miners who Leonidas claims are supporting him, controlling more than 50% of the hash rate. With $500 million already contributed to the ecosystem since 2023, the issue is poised to impact future transactions and investments.
Why does this matter?
This matter carries significant market impact as it deepens existing tensions over Bitcoin’s future direction. A fork in the Bitcoin Core could lead to a split in the Bitcoin user community and potentially disrupt the stability of the cryptocurrency market. In addition, it could undermine Bitcoin Core’s market dominance as alternative implementations gain traction. Furthermore, this could potentially influence the perception and reputation of Bitcoin, an influencer in the wider crypto market.