Bitcoin holders are being warned to be careful if a potential BIP-110 chain split takes place, as moving or selling coins on the new chain could accidentally result in the loss of real Bitcoin.
Bitcoin developer Kevin Loaec said the main concern is a replay attack. If the network splits into two separate chains, anyone holding Bitcoin before the split would initially own the same amount of coins on both chains.
For example, someone with 10 BTC before the split would have 10 BTC on the main Bitcoin network and 10 coins on the new BIP-110 chain. While the extra coins might appear valuable, selling them could create unexpected risks.
Because BIP-110 does not include built-in replay protection, a transaction made on one chain could potentially be copied and used on the other chain. This means a person trying to sell their forked coins could unintentionally send the same amount of real Bitcoin from the main network to the buyer.
Experts stress that the risk is limited to the specific coins involved in the transaction, not an entire wallet. However, large Bitcoin holders could become attractive targets because successful replay attacks involving larger amounts would be more profitable.
For users who are unsure how to separate their balances between the two chains, the safest option may be to avoid moving their coins until exchanges, wallet providers, and network participants provide clear guidance.
The debate centers around BIP-110, a proposal that would temporarily restrict images, text, and other non-financial data stored on the Bitcoin blockchain. Supporters argue the change would help keep Bitcoin focused on its role as a monetary network, while critics warn it could lead to censorship concerns and increase the risk of a network split.
The proposal requires support from miners, but current backing remains very low. Recent tracking data showed miner support at around 2.6%, far below the 55% threshold needed for activation.
If support remains weak, a split is possible but not guaranteed. A separate chain would only continue operating if enough miners choose to support it. Without sufficient mining power, the new chain could struggle to produce blocks or stop functioning altogether.
Another concern is that BIP-110’s data restrictions would not take effect immediately. During the early stages of any split, transactions could remain valid on both chains, creating the replay attack risk that developers are warning about.
Several well-known Bitcoin figures, including Blockstream co-founder Adam Back and Strategy founder Michael Saylor, have publicly opposed the proposal. They argue that changing Bitcoin’s consensus rules over disputes about blockchain data could create long-term risks for the network.
For now, the key message from developers is simple: if a BIP-110 split occurs, Bitcoin holders should be cautious. Until reliable tools are available to separate coins on each chain, moving or selling forked coins could expose users to the risk of unintentionally transferring their real Bitcoin as well.
