The Bitcoin community is experiencing an unprecedented debate since the beginning of 2025, revolving around a proposal called Bitcoin Improvement Proposal 444 (BIP-444). This is the latest in a chain of controversial changes to control the amount of data written to the Bitcoin blockchain – an issue that has always been XEM sensitive because it is directly related to the freedom, security and decentralization of the largest cryptocurrency network on the planet.
It all started after the Bitcoin Core v30 update was released earlier this month. The update significantly increased the limit of data that can be written to a Bitcoin transaction via the OP_RETURN command, as long as users pay the appropriate fee. In theory, this makes Bitcoin more flexible, opening the door to innovative applications like on- chain Non-Fungible Token or non-financial data storage. However, many experts warn that allowing unlimited data storage could lead to the blockchain containing illegal content, such as child abuse images or material, which could pose a legal risk to node operators – the people who keep the global Bitcoin network running.
Since then, a group of developers has proposed BIP-444 with the goal of “closing the valve” on the amount of arbitrary data that can be put on the chain. According to the draft, BIP-444 would limit the OP_RETURN command to just 83 bytes, while setting a ceiling of 34 bytes for other types of data. In addition, this proposal also disables some technical features that were used to engrave images, Non-Fungible Token or “Ordinals inscriptions” – which are very popular. In other words, if BIP-444 is approved, JPEG images, memecoins or non-financial data will have almost no chance of existing on the Bitcoin blockchain.
What's unique is that BIP-444 doesn't aim to permanently change Bitcoin. It only proposes a temporary soft Fork lasting about a year, giving developers more time to research a more sustainable solution for storing data on- chain. However, many in the community believe that once the change is implemented, it will be difficult to reverse.
The author of BIP-444 is known as “Dathon Ohm,” a newcomer who appeared on GitHub and X (formerly Twitter) just days before the proposal was posted. Dathon Ohm has no previous Bitcoin code development history, leading the tech community to question his true identity and motives. However, the proposal quickly attracted the attention of veterans, including Luke Dashjr, a prominent long-time developer and vocal opponent of the Ordinals movement. Dashjr has publicly supported BIP-444, arguing that it is “simple enough, secure enough” to protect the network in the short term, although he denies being the author.
Opponents of BIP-444 argue that such data restrictions amount to censorship, which goes against Bitcoin’s core philosophy of freedom and decentralization. One of the most vocal voices is Leonidas, a prominent figure in the Ordinals community. He argues that if the community accepts blocking Non-Fungible Token or image transactions, it will eventually become “normal” for governments to censor financial transactions. He adds that more than half of all Bitcoin mining power is willing to accept any valid transaction for free, regardless of the data content.
Meanwhile, Jameson Lopp, co-founder of crypto security firm Casa, points out that BIP-444 is vague on the most important point: what constitutes “illegal content”? Laws vary from country to country, and determining whether a node is “hosting” prohibited content is a complex legal issue. According to Lopp, whoever runs the node voluntarily complies with the network rules, and if they disagree, they can withdraw.
