{"type":"rich","version":"1.0","title":"daniella wrote","author_name":"daniella (npub1tm…ucu5x)","author_url":"https://nostr.now/npub1tmda3pwknv0sx55g8d0lhcehqqhf8jke6rd2st5fr0pgkhau9y0qyucu5x","provider_name":"njump","provider_url":"https://nostr.now","html":"This is why #BIP110 matters more than ever:\n\nBITCOIN IS BECOMING FIAT\n\nThere are real financial incentives to flood Bitcoin with non-monetary data including .jpegs, inscriptions, ordinals, and tokens.[1][4][5][6][7]\n\n- At scale, VC capital is paying for Bitcoin to not be Bitcoin. My independent research across 169 companies found that 56% of \"Bitcoin-companies\" have drifted into non-Bitcoin products, including every single company with a raise above $50M.[2] \n\n- STRC's Cantillon reconstruction on the protocol is another example of this.[3] It's the very \"financial engineering\" Bitcoin was designed to end.\n\n- Many of the largest Bitcoin influencers, educators, and conference organisers are funded by the same fiat structures they claim to oppose.[8] Sponsorship, affiliate, and ad revenue create a feedback loop where the creator cannot scrutinise the company paying for their reach. At $480,000 for a single sponsorship deal, the financial incentive to stay silent is structural, not personal.[8]\n\nAcross the entire industry, from development to marketing, the money is on the side of making Bitcoin not Bitcoin. \n\nBITCOIN IS MONEY\n\nBitcoin was created to be money: \"A peer-to-peer electronic cash system.\" That is the title of the white paper and the entire point of the protocol.[9]\n\nFor 5,000 years, every civilisation that handed control of its money to a central authority followed the same sequence: Debasement, inflation, inequality, collapse, reset.[11] The flaw was centralized trust. Bitcoin is the first technology in history that removes it entirely, enforcing a fixed supply through mathematics and a decentralised network distributing trust. \n\nThat is one of Bitcoin's most important contributions and it only works if the network stays decentralised.\n\nTHE PROBLEM\n\nWhen non-monetary data floods the chain, it triggers a sequence that leads to Bitcoin becoming a vehicle to perpetuate fiat.\n\nThe more non-monetary data, the faster the blockchain grows, which raises the cost of running a full node, which reduces the number of people who can participate, which weakens decentralisation, which compromises security, which means Bitcoin stops being the tool that ends the 5,000-year fiat extraction cycle.[11]\n\nTHE SOLUTION\n\nBIP-110 is a temporary soft fork that restricts non-monetary data at the consensus level. Over 21% of reachable nodes have already migrated to Bitcoin Knots, and now over 13% are also running BIP-110 (aka RDTS).[10]\n\nThis combo is a measurable signal that a meaningful portion of the network still treats Bitcoin as money.\n\nDON'T TRUST, VERIFY\n\nThe funding relationships are there to find, though sometimes undisclosed.[8] I didn't realise this until recently. Writing the series is what made me see how important \"don't trust, verify\" is, even for structures I thought were a given. \n\nBefore you take anyone's word on their funding models and BIP-110, including mine, check their incentives. One way to do so is to ask an Ai to run an integrity check on any Bitcoin influencer, developer, or company. I hadn't done this work so deeply until recently. What I found changed how I see the entire space.\n\nWHY I'M WRITING THIS\n\nThe fiat system specialises in making its own logic feel like common sense: \"Of course yield is necessary. Of course running a node is too complicated. Of course the ETF is safer.\" These are what rational actors do when the incentive structure is built around them.[13] That's the sophistication of what Bitcoin is up against, but the money behind what's being said online is findable.\n\nI thought things were different in Bitcoin, that we were genuinely changing the world, not just talking about it. I've experienced a lot of disillusionment this year and the series covers it. But there is a silver lining.\n\nThe protocol is intact. 12,000 nodes are enforcing Bitcoin as money by signalling for BIP-110.[10]  Everything is becoming more visible. Thousands of nodes holding the line is the signal that matters.\n\nCONTEXT \u0026 SOURCES\n\nI referenced my own work a lot here but each piece contains independent research and refers to the work of others:\n\n[1] Liberati, D. (2026, June 12). Fiat incentives in Bitcoin: A department-by-department map. https://daniella.io/fiat-incentives-everywhere/\n\n[2] Liberati, D. (2026). Why Bitcoin companies drift. https://daniella.io/bitcoin-funding\n\n[3] Liberati, D. (2026, June 12). STRC explained: The Cantillon effect rebuilt on Bitcoin. https://daniella.io/bitcoin-strc\n\n[4] Liberati, D. (2026, June 9). Bitcoin Core vs Bitcoin Knots + BIP 110: Which node should you run? https://daniella.io/core-vs-knots/\n\n[5] hodlonaut. (2026, March 27). The capture: The network. Citadel21. https://www.citadel21.com/the-network\n\n[6] hodlonaut. (2026, April 29). The capture: The lever. Citadel21. https://www.citadel21.com/the-lever\n\n[7] hodlonaut. (2026). The capture: The merge. Citadel21. https://www.citadel21.com/the-merge\n\n[8] Liberati, D. (2026). How money shapes the signal. https://daniella.io/bitcoin-marketing\n\n[9] Nakamoto, S. (2008). Bitcoin: A peer-to-peer electronic cash system. https://bitcoin.org/bitcoin.pdf\n\n[10] Dashjr, L. (2026, June 22). Bitcoin network statistics. Luke Dashjr. https://luke.dashjr.org/programs/bitcoin/files/charts/services.html\n\n[11] Liberati, D. (2026). The 5,000-year economic karmic cycle that Bitcoin is ending [Video]. YouTube. https://www.youtube.com/watch?v=M9HtTw897BA\n\n[12] Liberati, D. (2026, June 1). Nostr's retention problem: A structural diagnosis. https://daniella.io/nostr-retention-structural-diagnosis/\n\n[13] Liberati, D. (2026, June 14). The comfortable trap: The fiat-to-Bitcoin transition. https://daniella.io/the-comfortable-trap/\n\nAdditional reading:\n\nLiberati, D. (2026, May 21). The 5,000-year economic karmic cycle that Bitcoin is ending. https://daniella.io/fiat-money-karmic-cycle/\n\nLiberati, D. (2026, May 7). The prison door is open. https://daniella.io/leaving-fiat/"}