Bitcoin Core plans to remove 80-byte limit on OP_RETURN data

Bitcoin Core developers announced the removal of the 80-byte limit on OP_RETURN outputs in the upcoming network upgrade.

The change will allow transactions to include larger amounts of arbitrary data and permit any number of OP_RETURN outputs by default.

Bitcoin (CRYPTO:BTC) developer Greg Sanders explained on May 5 that the original limit was intended as a “gentle signal” to discourage excessive use of block space for non-payment data but has outlived its usefulness.

The proposal, created by Bitcoin pioneer Peter Todd at Chaincode Labs’ request, aims to address how users have circumvented the limit by using fake output addresses, which can harm the network.

OP_RETURN outputs are special transaction outputs that store small data amounts on the blockchain without creating spendable outputs or bloating the unspent transaction output (UTXO) set.

Sanders noted that large data inscriptions are occurring regardless and the cap simply channels them into more opaque, damaging methods.

Removing the limit is expected to result in a cleaner UTXO set, more consistent network behavior, and better alignment with current Bitcoin usage.

The developers considered three options: maintaining the cap, raising it, or removing it entirely, with broad but not unanimous support for removal.

The change has sparked controversy among some Bitcoin users.

Samson Mow commented on X that users opposed to the change can refuse to upgrade or use alternative implementations.

Critics argue the proposal lacked a proper consensus process.

“There is no consensus at the moment on this OP_RETURN issue,” Marty Bent of Ten31 Fund said.

Concerns were also raised about the potential deprioritisation of Bitcoin’s financial utility and possible undisclosed conflicts of interest.

At the time of reporting, the Bitcoin price was $94,151.50.