Leonidas’ Warning on Bitcoin Transaction Policies
In a bold response to ongoing debates about transaction policies within the Bitcoin community, Leonidas, the creator behind The Ordinal Show, issued a stark warning: the development of an alternative, open-source version of Bitcoin Core could be funded should there be attempts to censor non-financial transactions, such as Ordinals and Runes. This declaration, made via a recent post on social media platform X, has garnered attention amid a growing divide among Bitcoin enthusiasts regarding the network’s transaction priority.
Debate Over Transaction Types
Prominent figures like Blockstream’s CEO Adam Back are pushing for a focus on peer-to-peer financial transactions, deeming larger data transactions—like images and videos—as unnecessary clutter, or spam, in the Bitcoin ecosystem. Leonidas, however, vehemently opposes this stance and cautions against setting a “dangerous precedent.” He indicated that any move to restrict policies or censor transactions related to Ordinals and Runes would provoke a strong counteraction, stating,
“If necessary, the DOG Army will fund the development and maintenance of an open-source fork of Bitcoin Core that strips out nearly all policy rules.”
Rise of Bitcoin Knots
This sentiment comes amid a notable increase in the popularity of Bitcoin Knots, an alternative to Bitcoin Core, which has significantly expanded from 67 nodes in March 2024 to over 4,380, now accounting for over 18% of the network. This surge in Bitcoin Knots appears to coincide with the impending release of Bitcoin Core v30 on October 30. This update intends to lift the 80-byte limit on the OP_RETURN functionality, enabling the storage of larger media files on the blockchain. Concerns have been voiced by advocates of censorship against the update, fearing it could diminish the effectiveness of the network.
Financial Contributions of Ordinals
Among those supporting Back’s views are notable Bitcoin advocates such as Luke Dashjr and Dennis Porter from the Satoshi Action Fund. In defense of Ordinals, Leonidas highlighted the significant financial contributions these transactions have made to Bitcoin’s overall security, citing more than $500 million in transaction fees generated. This revenue stream is particularly critical as the block subsidy for Bitcoin mining continues to halve roughly every four years, raising concerns about impending network security.
Future of Bitcoin’s Transaction Policies
Leonidas revealed his discussions with Bitcoin miners who control more than 50% of the Bitcoin hash rate, asserting that they’ll continue to accept all transactions as long as the fees remain appealing. Despite this, the reliance on fees from Ordinals transactions has been challenging, with fluctuating activity levels. For instance, data from Dune Analytics indicated a stark decline, with Bitcoin miners earning only $3,060 from Ordinals on August 31—a sharp drop from the record high of $9.99 million achieved on December 16, 2023. Even into 2025, the activity remains subdued, with the strongest days barely surpassing $1 million, suggesting a decreased demand for blockspace for Ordinals. As these discussions unfold, the future of Bitcoin’s transaction policies and the balance between censorship and freedom remains precarious.
