BitMEX backs plan to remove Bitcoin’s OP_Return limit

BitMEX has announced its endorsement of the removal of the OP_Return policy limit in Bitcoin Core, the software that is responsible for the operation of the Bitcoin network. On May 7, 2025, the organization disclosed its position in a blog post.

The OP_Return policy limit in Bitcoin Core is a system that regulates the amount of supplementary data (metadata or notes) that can be incorporated into a Bitcoin transaction through the use of the OP_Return script. At present, the limit is 80 bytes.

The purpose of this limit is to prevent the Bitcoin blockchain from becoming overloaded with substantial quantities of non-financial data, which could result in increased storage and processing requirements and a decrease in transaction rates.

Although the limit system is a policy, it is not a consensus rule that is ingrained in the Bitcoin blockchain. This implies that miners may incorporate transactions with a greater amount of OP_Return data. Ordinals serve as an illustration.

This limit is obsolete and has a detrimental impact on the Bitcoin ecosystem, as per BitMEX. It asserts that there are miners who generate substantial profits by incorporating larger data into the network, utilizing Ordinals as a case study.

“As evidence for this, we note that miners have received over 7,000 bitcoin in fees related to Ordinals,” it stated.  “Ordinals usage has been strong, according to a dashboard on Dune.com, there have been over 88 million inscriptions, paying over 7,000 bitcoin in transaction fees.”

Based on these statistics, Bitmex contended that the absence of a limit would assist users in establishing more accurate transaction fees by providing them with a more comprehensive understanding of the priorities of miners.

BitMEX also stated that this could expedite transaction confirmations and decrease dependence on third-party tools for fee estimates. It is the company’s conviction that maintaining the limit encourages users to employ less efficient methods. This encompasses the storage of data in a manner that clogs the blockchain’s unspent transaction output (UTXO) set.

The Bitcoin community has been divided by the proposal to remove the OP_Return limit. Some developers and users are apprehensive that it could potentially promote the use of Bitcoin for non-financial purposes. Luke Dashjr, the creator of Bitcoin Knots, an alternative Bitcoin software, referred to the modification as “utter insanity.”

This development indicates that the utilization of Bitcoin is changing over time. Users who disagree with the proposal may continue to use older software versions or transition to alternatives such as Bitcoin Knots, which enforces more stringent restrictions, if the proposal receives more support.