Kevin Loaec warns that selling coins from the BIP-110 fork could lead to Bitcoin losses due to double accounting risks.
Blockchain specialist Kevin Loaec has raised alarms regarding a potential soft fork, BIP-110, which could lead to significant losses for Bitcoin holders if they attempt to sell newly generated coins.
⚠️IMPORTANT⚠️In the next couple of days, a new shitcoin will fork off Bitcoin. It is a big security risk for people who just believe they will get an "airdrop" and want to sell it, to get more bitcoin.
I will write more about it, but here is the TLDR: 👇
— Kevin Loaec 🧙♂️🐟 (@KLoaec) August 6, 2026
Loaec explained that the fork could create a double accounting scenario, where the same assets appear on both chains, potentially allowing bad actors to manipulate transactions. If someone sells fork tokens, they may inadvertently provide a blueprint for a corresponding transaction on the original Bitcoin network.
This could lead to a loss of the actual bitcoins in the seller's wallet, as the transfer would simultaneously deduct the declared amount from their balance, incurring fees on both chains. Loaec cautioned that this risk primarily affects large holders and advised that keeping assets stationary is the safest approach.
Historically, Bitcoin has faced similar issues; during the hard fork with Bitcoin Cash in 2017, developers implemented measures to prevent cross-chain transactions. However, BIP-110 lacks such protections, raising concerns over potential vulnerabilities.
Context of the Controversy
The ongoing dispute traces back to late 2025 when the release of Bitcoin Core v30 increased the OP_RETURN field limit, prompting criticism about the potential for excessive data embedding in the blockchain. In response, the Bitcoin Knots team proposed BIP-110 in December, aiming to restrict non-payment data volume for a year.
For BIP-110 to be fully activated, it requires approval from 1,109 out of 2,016 blocks; so far, it has been tagged in approximately 2.6% of blocks. Starting from block #961,632, expected on August 8, nodes implementing BIP-110 will reject blocks lacking the necessary tag, potentially leading to a split in the network.
However, without miners to produce blocks under the new rules, an alternative chain may not materialize. The restrictions on non-payment data from BIP-110 will be enforced starting with block #965,664, projected for early September, allowing both networks to process transactions until then.
To safely manage their assets, holders will need to acquire coins unique to one branch to distinguish their balances. The timeline for block production could also shift by a day in either direction, adding to the uncertainty.
Notably, in July, a co-founder of the Runestone project, known as Leonidas, launched a Bitcoin client opposing BIP-110, further complicating the landscape.
