A contentious Bitcoin soft fork attempt stalled after major mining pools refused to signal for BIP-110, leaving the enforcing chain stranded while the main proof-of-work chain advanced normally.
The Bitcoin network successfully navigated a high-stakes protocol stress test this week as a coordinated attempt to enforce new consensus rules via BIP-110 failed to gain traction among the network’s industrial mining core. On August 9, 2026, the mandatory signaling window for the proposal opened, resulting in a temporary chain split that was rapidly resolved by the overwhelming economic majority of the network’s hashpower. This event serves as a critical case study in decentralized governance, highlighting the immense difficulty of pushing protocol changes without broad, voluntary consensus from the entities securing the ledger.
The split occurred at block height 961,632 when nodes enforcing the BIP-110 ruleset began rejecting blocks that did not include the required version-bit-4 signal. While the OCEAN mining pool successfully produced two signaled blocks (961,632 and 961,633) to initiate the enforcing branch, the rest of the global mining complex—including heavyweights Foundry USA, F2Pool, AntPool, and ViaBTC—continued mining on the original ruleset. This resulted in a massive 57-block gap between the two chains within hours, with the enforcing branch stalling while the main proof-of-work chain advanced to height 961,690. The lack of hashpower on the BIP-110 chain meant that block production essentially ceased, leaving enforcing nodes stranded on a minority branch.
Data from independent monitors confirmed that aggregate signaling for BIP-110 remained anemic, hovering between 0.6% and 2.6% in the lead-up to the window. This was far below the 55% threshold required for a successful lock-in at height 963,648. The collapse of the enforcing chain was further accelerated by a dramatic drop in OCEAN pool’s hashrate, which plummeted from approximately 36 EH/s on August 8 to just 1.25 EH/s by August 9—a 96.5% decline. Key participants, including the mining group Roughnecks, publicly exited the pool and urged miners to return to the dominant chain until further notice, citing the dangers of mining a chain that lacked market-wide adoption.
Institutional infrastructure providers, including Coinbase and Kraken, reported that their systems remained fully operational and unaffected by the split. These exchanges, along with major custodians, have since updated their guidance to clarify that the non-BIP-110 main chain remains the canonical ledger for all assets and ETFs. The event has sparked a renewed debate over Bitcoin governance and the legitimacy of signaling. Critics, including Michael Saylor, pointed out that the brief 100% signaling span seen on the enforcing branch was a function of rule enforcement rather than voluntary agreement, suggesting that node-level activism cannot override the economic reality of hashpower.
While the protocol faced this internal friction, institutional interest in the underlying asset remained robust. U.S. spot Bitcoin ETFs recorded significant inflows totaling $754.69 million this week, marking the strongest weekly performance since April. These flows suggest that institutional investors are prioritizing the security and stability of the main chain despite the Senate’s decision to delay the CLARITY Act vote until September. Furthermore, on-chain data indicates that large-scale holders have accumulated over 20,000 BTC since late July, signaling confidence in the network’s resilience.
As the BIP-110 ruleset enters a passive timeout period over the next 52,416 blocks, the industry is shifting its focus toward post-mortem analysis. The failure of this soft fork reinforces the principle that Bitcoin’s decentralized engineering is designed to resist minority-led changes. For now, the successful rejection of the split serves as a victory for the existing proof-of-work consensus mechanism and a reminder that in the New Cold War for digital sovereignty, the stability of the protocol is the ultimate defense against fragmentation.

