Bitcoin holders risk losing real BTC if they sell coins from BIP-110 fork, says developer
Reported by CoinDesk · AI-assisted summary by ChikoCorp AI News Desk
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Summary
A proposed Bitcoin fork associated with BIP-110 may cause users to hold coins on two competing chains. Bitcoin holders who attempt to sell these forked coins risk losing their original bitcoin due to replay attacks, where transactions on the fork chain are duplicated on the main chain. Developers, including Bitcoin developer Kevin Loaec, warn that without replay protection until early September, users should avoid moving coins during the possible split.
Why it matters
This situation poses a security risk for Bitcoin holders, especially non-experts who might be enticed by offers to buy the forked coins at favorable prices. Selling these forked coins could result in the unintended spending of genuine bitcoin on the main chain, potentially causing real financial loss. The lack of replay protection until the start of September increases the vulnerability of users during this period.
Key context
BIP-110 is a Bitcoin Improvement Proposal aimed at excluding non-payment data, like pictures and text, from Bitcoin transactions for a year. The proposal requires miner agreement through a signaling process, but currently miner support is very low (around 2.6%), making a fork possible but uncertain. From block 961,632, BIP-110-compliant nodes will reject any blocks not carrying a specific mark, potentially creating two competing chains. Replay protection, meant to separate transactions on the two chains safely, is not activated until approximately block 965,664, expected in early September.
Key numbers and entities
The key entities mentioned are Bitcoin holders, miners, and Bitcoin developer Kevin Loaec. The relevant block numbers are 961,632, when BIP-110 enforcement begins, and 965,664, when replay protection activates. Miner support for BIP-110 blocks is about 2.6%. The required signaling threshold under BIP-110 is 1,109 out of 2,016 blocks (55%).
What remains unclear
The exact timing of the fork and signaling window is uncertain because it depends on how quickly blocks are found, which can vary by a day or so. It also remains unclear whether the minority chain will continue to be mined actively or stall, leaving unresolved how significant the fork’s impact will be. The source does not flag other open questions.