Bitcoin Ordinals Developer Threatens Fork Over Censorship Dispute
A developer from the Bitcoin Ordinals ecosystem, known as Leonidas and host of The Ordinal Show, has warned of funding an open-source fork of Bitcoin Core if the community attempts to censor non-financial Bitcoin transactions, including Ordinals and Runes.
In an open letter posted on X (formerly Twitter) on Saturday, Leonidas expressed concerns over ongoing tensions within the Bitcoin community. The debate focuses on whether node validators should prioritize pure peer-to-peer financial transactions by excluding or censoring large data transactions such as images, videos, or documents, which critics label as spam.
Leonidas cautioned that imposing stricter policy rules or censorship on Ordinals and Runes would set a “dangerous precedent” and prompt “decisive action.” He stated, “If necessary, the DOG Army will fund the development and maintenance of an open source fork of Bitcoin Core that strips out nearly all policy rules, and that thousands of people will run to make it abundantly clear that Bitcoin is and must always remain censorship resistant.”
This declaration follows remarks by Blockstream CEO Adam Back, a prominent Bitcoin figure who has argued that such data-heavy transactions constitute spam and should have “no place in the timechain.” Other notable opponents of these transactions include Ocean Mining creator Luke Dashjr and Satoshi Action Fund CEO Dennis Porter.
Bitcoin Knots Gains Traction Amid Core Update Debate
As the controversy unfolds, Bitcoin Knots, an alternative Bitcoin client, has seen a surge in adoption. The number of Bitcoin Knots nodes increased from 67 in March 2024 to over 4,380 currently, representing more than 18% of the total network nodes.
This growth precedes the scheduled release of Bitcoin Core version 30 on October 30, which will remove the 80-byte limit on the OP_RETURN function. This change is expected to enable the storage of significantly larger media files on-chain, a feature that Ordinals supporters fear may be reversed or restricted.
Transaction Fees from Ordinals and Runes Bolster Bitcoin Security
Leonidas emphasized that the Ordinals and Runes ecosystems have generated over $500 million in transaction fees, contributing substantially to Bitcoin’s security budget. This is particularly relevant as Bitcoin’s block subsidy halves approximately every four years, diminishing miner rewards from newly minted coins.
He also noted discussions with miners controlling more than 50% of Bitcoin’s hash rate, who reportedly remain willing to include any transaction type if fee levels remain competitive.
Volatility in Ordinals Transaction Fees Raises Sustainability Questions
Despite their contribution, reliance on transaction fees from Ordinals has proven inconsistent. Data from Dune Analytics shows significant fluctuations, with miners earning as little as $3,060 from Ordinals on August 31, 2024, compared to a peak of nearly $10 million on December 16, 2023.
Moreover, daily fee totals in 2025 have not surpassed $1 million, indicating a decline in Ordinals’ use of block space relative to previous years. This seasonality and unpredictability introduce uncertainty regarding the long-term role of such data-heavy transactions in supporting the Bitcoin network.
FinOracleAI — Market View
The threat to fork Bitcoin Core introduces a notable risk of fragmentation within the Bitcoin community, potentially impacting network cohesion and miner consensus. While Ordinals and Runes contribute meaningful transaction fees, the volatility and disputes over censorship could deter some node operators and users.
Key risks include escalating ideological divides and potential user migration to alternative clients like Bitcoin Knots. Monitoring the community’s response to the upcoming Bitcoin Core v30 release and any censorship measures will be critical to assessing network stability.
Impact: negative