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BIP-110 is dead. The proposed Bitcoin soft fork, which aimed to purge non-financial transactions from the blockchain, forked into a minority chain over the weekend and basically went nowhere fast.
The minority chain managed to mine just two blocks in eight hours. That’s it. Mining on that chain cost as much as mining on the main Bitcoin network, but block rewards couldn’t be sold to cover expenses — so miners were bleeding money with zero upside. The fork never gained enough traction to trigger a downward difficulty adjustment, which would have at least made the mining economics slightly less brutal. Final support tally: 2.5%. Pretty much a rounding error in terms of consensus.
The proposal had drawn fire from some heavy hitters in the Bitcoin world. Michael Saylor and Adam Back both voiced concerns that BIP-110 could damage Bitcoin’s neutrality and credibility. The debate got personal, too. Bitcoin Core developer Murch put forward a proposal to remove BIP-110 supporter Luke Dashjr from his position as a BIP Editor — a move that laid bare just how fractured the community had become over this.
CLARITY Act Vote Pushed to September 15
On the legislative side, Senator Tim Scott announced that the procedural vote on the CLARITY Act won’t happen before the August recess after all. New date: September 15. Senator Cynthia Lummis had been among those expecting the vote to land earlier, so the delay stings a bit for crypto’s congressional allies.
Senate Majority Leader John Thune said the reason is simple — not enough consensus. The bill needs 60 votes to clear a procedural hurdle, and they’re not there yet. The delay isn’t necessarily a death blow, though. Crypto lobbyists now get more time to work the room, negotiate on specific provisions inside the bill, and try to lock down the votes they need. Whether that extra time actually moves the needle is unclear.
Coldcard Hack Fallout: 8,000 Vulnerabilities Flagged
Security is front and center right now, and not in a good way. A Bitcoin security volunteer group — working with AI-assisted tools — reviewed Bitcoin-related projects and turned up nearly 8,000 potential issues. Of those, 168 were flagged as critical.
The review was triggered in part by vulnerabilities in the Coldcard hardware wallet. That flaw, tied to faulty random number generation in seed phrases, led to over $100 million being stolen from 7,300 wallets. It’s the third-largest crypto hack of the year. The incident has pushed users to rethink hardware wallet safety more broadly, with some now opting for manual dice rolls to generate seed phrases rather than relying on device-generated randomness. Can’t really blame them.
Interestingly, the Coldcard fallout seems to have pushed money into Bitcoin ETFs rather than out of crypto entirely. ETF inflows hit $853.54 million — a big number. Seems like some investors decided that if self-custody carries this kind of risk, regulated products start looking more appealing. Meanwhile, crypto perpetual futures trading volumes on centralized exchanges fell to their lowest point in 31 months. So the institutional bid is there, but the speculative trading crowd has gone quiet.
Ethereum’s EIP-8363 Stirs DeFi Pushback
Ethereum developers floated EIP-8363, a proposal that would tie validator rewards to how much ETH is staked relative to total supply. The idea: if staking crosses 50% of supply, rewards get trimmed. The goal is to stop over-rewarding validators when the network is already heavily secured.
The DeFi community isn’t happy. Critics warn it could discourage staking, hurt decentralization, and make Ethereum less attractive to institutional investors who’ve been drawn in by staking yields. The tension between keeping the network secure and keeping it economically attractive isn’t new in Ethereum circles, but EIP-8363 has sharpened that debate considerably. No resolution yet. Probably won’t be quick.
Market Numbers
Bitcoin rose 2% to $64,814. Ethereum gained 1.7%, landing at $1,908. Total crypto market cap sat at $2.21 trillion.
Altcoins were all over the place. Pump.fun led gains among major cryptocurrencies. Injective took the biggest hit. LayerZero saw notable weekly movement. Canton dropped. The usual chaos.
The week basically had everything — a failed soft fork, a delayed Senate vote, a major hack driving security reviews, ETF inflows at nearly $854 million, and a divisive Ethereum staking proposal with no clear outcome.
Bitcoin ETF inflows: $853.54 million.
Frequently Asked Questions
What happened to BIP-110 and why did it fail?
BIP-110 forked into a minority chain that mined only two blocks before stalling, gaining just 2.5% support and never triggering a difficulty adjustment.
When is the CLARITY Act vote now scheduled?
Senator Tim Scott announced the procedural vote was delayed to September 15, with Senate Majority Leader John Thune citing a lack of consensus as the reason.
