Bitcoin Core's plan to remove data caps reignites debate over network's purpose

Bitcoin developers are going to remove the OP_RETURN limitation in the next update

Bitcoin Core's decision to remove the long-standing 80-byte OP_RETURN limit has once again caused tension among network developers and node owners.

Sam Reynolds | Edited by Shaurya Malwa Updated May 6, 2025, 2:41 PM Published May 6, 2025, 6:25 AM

What you need to know:

• Bitcoin Core plans to remove the OP_RETURN limit, sparking debate about data transparency and potential network abuse.
• Lead author Greg Sanders argues that removing the limitation will result in a cleaner UTXO set and more predictable behavior.
• Critics, including developer Luke Daschger, warn that the change could increase spam and shift Bitcoin's financial focus.

Discussions regarding OP_RETURN in Bitcoin have intensified after the developers of Bitcoin Core, the most widely used node software, announced their plans to remove OP_RETURN entirely in the next release.

The OP_RETURN limit is an 80-byte limit on the amount of arbitrary data that can be embedded in a Bitcoin transaction using a special non-spendable output field.

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“Large data writes happen independently and can be done in a variety of ways, including abuse,” said Blockstream lead contributor and engineer Greg Sanders, known as “instagibbs,” in a Github post about the repeal. “The restriction only redirects them into less transparent forms, which hurts the network.”

The debate centers on whether removing the 80-byte OP_RETURN limitation promotes transparency and makes it easier to use data in Bitcoin, or whether it opens up opportunities for abuse, spam, and a shift away from Bitcoin's financial focus.

On GitHub, Sanders added that the restriction created perverse incentives for users to embed data in fake public keys or expendable scripts. He argues that removing the restriction “provides at least two notable benefits: a cleaner UTXO set and more predictable default behavior.”

Not everyone shares this view. Core developer Luke Dashjr has long considered such posts and other data stores to be spam, and warned in April 2025 that the change was “complete madness.”

Amid these controversies, Bitcoin Knots, also backed by Dashjr, has grown in popularity, reaching around 5% of all node share.

Bitcoin Knots, more on

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