August brings BIP-110 mandatory signaling and eCash fork

Bitcoin faces two separate protocol events in a compressed August block window. BIP-110’s mandatory signaling period is scheduled to begin at block 961,632 and run through block 963,647. Paul Sztorc’s planned eCash hard fork, which includes a 1:1 airdrop to bitcoin holders at the fork block, is targeted near block 964,000.

BIP-110, titled the Reduced Data Temporary Softfork and authored by Dathon Ohm, would require nodes running compatible software to reject blocks that do not signal during the mandatory window. The proposal uses version bit 4 and allows earlier activation if 55% of miners signal within a retarget period, equal to 1,109 of 2,016 blocks. The design aims to guarantee lock-in by block 963,648 and to activate afterward.

The proposal places temporary limits on transaction data for about one year, roughly 52,416 blocks. Under the draft, outputs with a ScriptPubKey larger than 34 bytes would be invalid except for OP_RETURN outputs, which would be capped at 83 bytes. Large data pushes and witness items would be capped at 256 bytes. Several Taproot-related features would face temporary restrictions. Inputs spending UTXOs created before activation would remain exempt, and the limits would expire automatically after the one-year period. Miner signaling for BIP-110 stood at about 0.31% on June 22, 2026.

Paul Sztorc’s eCash plan would launch a new SHA-256d chain that starts as a near-copy of Bitcoin Core, applies a one-time difficulty reset at genesis, and activates Drivechain functionality via BIP 300 and BIP 301 from day one. The schedule includes a 1:1 airdrop assigning the new eCash asset to holders of bitcoin at the fork block.

The eCash proposal raises operational questions for exchanges, custodians, wallet providers and institutional holders, which must decide whether and how to recognize, secure, split or ignore the new asset. Large holdings of bitcoin in spot ETFs, regulated custody and corporate treasuries affect those decisions. The plan has prompted debate over proposals to reassign coins from early-era addresses for development or community incentives; critics call such proposals unfair, while backers describe the fork as voluntary and subject to holders choices.

The proximity of the two events creates overlapping operational and economic considerations. During the BIP-110 signaling window, miners that do not signal could see their blocks rejected by enforcing nodes. Shortly afterward, the eCash launch with a difficulty reset could attract hashpower and offer merged-mining and Drivechain-related opportunities. Miners could redirect older machines to the new chain if they choose.

Exchanges and custodians face decisions on deposit and withdrawal policies, replay protection, coin-splitting procedures and accounting treatment ahead of the fork block. Infrastructure operators may need to communicate policy changes to users and process coin-splitting requests if they opt to support the airdrop.

Key indicators to watch are miner signaling levels before block 961,632, adoption rates for BIP-110-compatible node software, and public statements from major exchanges and custodians on whether they will support the eCash airdrop and how they will handle replay and deposit risks before block 964,000.