Bitcoin OP_RETURN Limit Debate Continues as Ripple CTO David Schwartz Says Fee-Paying Data May Be Valid, Distances Ripple From XRP Community

  • OP_RETURN limit to rise to nearly 4 MB in Core 30

  • Supporters cite improved UTXO efficiency and new economic use-cases; critics warn of spam and node burdens.

  • Current limit vs proposed: small default → ~4 MB; Core 30 release expected October; quoted source: David Schwartz (Ripple CTO).

Bitcoin OP_RETURN limit change explained: what it means for nodes, fees and spam. Read analysis, expert comments, and next steps — stay informed with COINOTAG.




Published: 2025-09-02 | Updated: 2025-09-02 | Author: COINOTAG

What is the Bitcoin OP_RETURN limit change?

Bitcoin OP_RETURN limit in Bitcoin Core 30 will remove the small default cap and increase the permissible OP_RETURN data to nearly 4 megabytes, enabling larger fee-paying data transactions while raising trade-offs for node operators and network resource allocation. The change is scheduled with Core 30, expected in October.

Why is the OP_RETURN data limit controversial?

The debate centers on competing priorities. Proponents say raising the OP_RETURN limit improves network efficiency by treating fee-paying data as valid economic activity and can reduce UTXO churn. Opponents warn larger data embeds may increase spam, storage needs, and the resource cost of running full nodes. Both positions cite decentralization and long-term network health.

What are the main technical and economic impacts?

Front-loading the most important points: increased limit to ~4 MB could enable new data services and financial incentives, but may also amplify on-chain data volume and node resource consumption.

OP_RETURN: current vs proposed limits
Metric Current Default Proposed (Core 30)
OP_RETURN data cap Small default (bytes) Nearly 4 megabytes (~4 MB)
Expected effect Limited embedded data Higher embedded-data capacity
Node resources Lower storage/CPU Higher storage/CPU demands

What did David Schwartz (Ripple CTO) say about fee-paying data?

David Schwartz, chief technology officer at Ripple, wrote on X that “fee-paying data is valid economic activity,” arguing that labeling such transactions as “spam” is subjective when users pay the same fee as everyone else. His comments were intended to clarify that his views are personal and do not represent the broader XRP community.

How did the community react?

Reactions vary. Some developers and users endorse treating fee-paying data as legitimate use, citing market signaling. Others emphasize the practical costs to node operators and the potential for increased on-chain bloat. The debate remains active ahead of Core 30’s planned October rollout.


Frequently Asked Questions

How does the change affect node operators long-term?

An increase to nearly 4 MB for OP_RETURN can raise storage and bandwidth requirements for full nodes, increasing operational costs and potentially reducing the number of volunteer nodes. Operators may need upgraded hardware or pruning strategies to manage growth.

What immediate steps should users and businesses take?

Monitor Bitcoin Core 30 release notes, evaluate node capacity, and model fee economics for data services. Enterprises embedding large data should test on testnets and plan for higher storage and indexing requirements.

Key Takeaways

  • Change summary: OP_RETURN default cap to be increased to nearly 4 MB in Bitcoin Core 30, enabling larger fee-paying data transactions.
  • Trade-offs: Potential for new economic use-cases versus increased on-chain data, spam risk, and higher node resource needs.
  • Practical action: Node operators and service providers should assess hardware, fee models, and testnet behavior ahead of the October rollout.

Conclusion

The proposed Bitcoin OP_RETURN limit change rebalances on-chain data utility and infrastructure cost. Bitcoin OP_RETURN limit expansion could unlock new fee-paying activities but raises valid concerns about spam and decentralization. Stakeholders should prepare operationally and follow Core 30 release details from official Bitcoin Core communications and developer notes.



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