The future of Bitcoin hinges on community consensus.
As we pass the midpoint of 2025, Bitcoin has already shattered previous price records. Traditional financial giants like BlackRock and national strategic reserve funds have entered the market, treating Bitcoin as a hedge asset. Major corporations are following MicroStrategy's lead in making Bitcoin part of their strategic reserves.
However, this embrace from traditional finance hasn't fully benefited Bitcoin's internal network ecosystem. Despite the external excitement, Bitcoin's on-chain activity has entered an ice age.
According to The Block's latest data, Bitcoin's 7-day moving average transaction volume has dropped to $317,000—a 19-month low since October 2023. Back then with Bitcoin priced around $27,000, only 270,000 weekly transactions were processed. Today at $100,000/BTC, just 250,000 weekly transactions make it into blocks.
In simple terms: while prices have soared, Bitcoin's blockchain activity remains stagnant—far below the peaks seen during the 2023 inscription craze.
The Miner's Dilemma
Bitcoin miners rely on transaction fees for survival. The 2024 halving reduced block rewards to 3.125 BTC, making fees their financial lifeline. Yet with current low activity, some miners accept sub-1 sat/vB transactions just to stay operational.
The contrast with 2023's Ordinals-powered inscription boom is stark. Back then, BRC-20 tokens like $ORDI drove transaction volume surges. Today's frozen BTC network desperately needs revitalization.
Bitcoin Core's Potential Game-Changer
A new Bitcoin Core proposal offers hope for thawing this ice age. This transaction relay policy adjustment could allow more on-chain data—potentially breathing new life into struggling miners and cooled inscriptions.
The proposal has sparked intense debate internationally (700,000+ views, hundreds of comments), yet remains underreported domestically. Here are the key takeaways:
Flexible Relay: The Core Idea
Signed by 31 developers, the proposal states: "Bitcoin node software should minimize transaction interference, allowing economically viable transactions to propagate."
While technical sounding, this adjustment could profoundly impact:
- On-chain activity
- Miner revenue
- Inscription ecosystems
Understanding Transaction Relay
Transaction relay is how Bitcoin nodes propagate transactions—like highway dispatchers directing "vehicles" (transactions) to miners' "construction sites" (blocks). Nodes traditionally filtered transactions based on strict rules, especially data-heavy ones (like inscriptions).
The proposal's guiding principle: "Nodes shouldn't block economically valid transactions that miners accept."
This "flexible relay" approach would:
- Reduce node restrictions on transaction size/fees
- Increase transaction diversity (especially non-financial data like inscriptions)
- Improve propagation efficiency
The OP_RETURN Connection
This policy shift directly relates to OP_RETURN—a script opcode allowing small data attachments (currently capped at 80 bytes). While designed for simple chain messages, developers have used it innovatively:
- File hashes (notarization)
- NFT metadata
- BRC-20 token information
The 2023 inscription boom leveraged OP_RETURN via Taproot, enabling NFT-like functionality and tokenization. However, the 80-byte limit constrains complex content (larger images/videos), limiting Bitcoin's decentralized storage potential.
Potential OP_RETURN Impacts
While not explicitly mentioned, flexible relay could indirectly benefit OP_RETURN by:
- Reducing node interference with data-heavy transactions
- Laying groundwork for future size limit increases
- Improving propagation reliability
Miner Economics Reboot
Inscriptions and BRC-20 previously drove miner fee revenue to record highs. Relaxing OP_RETURN restrictions could:
- Increase fees from complex data uploads
- Alleviate post-halving income pressure
- Incentivize miner support for new policies
Notably, this proposal is technically easier to adopt—it adjusts relay policies (transaction propagation rules) without changing Bitcoin's consensus rules (transaction validity).
Practical Example: NFT Minting
Consider minting a high-resolution NFT requiring 200-byte metadata:
| Scenario | Current Rules | Proposed Rules |
|---|---|---|
| Data Size | Rejected (80B limit) | Accepted |
| User Experience | Poor | Excellent |
| Miner Fee Potential | Low | High |
This illustrates how the proposal could enhance both user experience and miner economics.
Community Reactions: Divided Opinions
The proposal has sparked passionate debate:
Supporters argue:
- Returns to Satoshi's permissionless ethos
- Legitimate transactions pay appropriate fees
- "Physical gold can be engraved—why not digital gold?"
Opponents warn:
- Data explosion risks network bloat
- Could compromise Bitcoin's monetary purity
- May increase node operation costs, reducing decentralization
Notable voices:
- 0xTodd (Pro): Sees miner income and innovation potential
- Luke Dashjr (Con): Calls it "mission creep" that sacrifices Bitcoin's core purpose
Node statistics show 93% run Bitcoin Core, while 7% use alternatives like Bitcoin Knots (which filters "spam" transactions). If adopted, we might see client fragmentation—echoing 2017's SegWit2x tensions.
FAQ Section
Q: How soon could this proposal take effect?
A: If consensus forms, flexible relay could deploy within months via Bitcoin Core updates.
Q: Won't more data clog the blockchain?
A: While data volume would increase, miners have economic incentives to prioritize higher-fee transactions regardless of content type.
Q: Does this make Bitcoin a storage chain?
A: No—it maintains Bitcoin's monetary primacy while accommodating secondary data use cases, much like physical gold's dual use as both currency and art medium.
Q: What's the technical barrier to implementation?
A: Minimal—only requires node software updates without consensus-layer changes.
The Path Forward
👉 Learn more about Bitcoin's evolving ecosystem
Bitcoin stands at a crossroads. This proposal could thaw the current on-chain ice age, potentially reigniting inscription innovation while supporting miners. Yet it risks network bloat and philosophical division.
👉 Explore Bitcoin mining economics post-halving
The ultimate decider? Community consensus. Whether through adoption or rejection, Bitcoin's next chapter will be written collectively—with implications far beyond price charts. The network's internal spring still awaits its catalyst.