Machine gods seem to like it:

Scenario: Increase OP_RETURN limit to 4 KB, reduce Witness Data to 400 KB/block.

Impact Analysis

1. Average Block Size

• Current: ~1.2–2.5 MB typically, ~4 MB theoretical max.

• Proposed: Likely ~500 KB–1 MB practically.

• Result: Smaller blocks overall.

2. Bitcoin Nodes

• Storage/IO: Reduced overhead, smaller blocks.

• Validation: Easier validation, less witness data.

• Bandwidth: Lower bandwidth requirement.

• Result: Lighter node requirements.

3. Decentralization

• Reduced reliance on third-party aggregation services (like OpenTimestamps).

• Easier to run nodes on lower-spec hardware.

• More flexible direct anchoring for protocols like Nostr.

• Result: Enhanced decentralization.

4. Economic & Incentive Effects

• Short-term: Reduced miner fees (fewer inscriptions).

• Long-term: Sustainable, protocol-level demand from cross-protocol anchoring (e.g., Nostr timestamps).

• Result: Sustainable miner incentives long-term.

Summary Table

Factor Effect

Avg. Block Size: Reduced significantly

Node overhead: Reduced (storage, bandwidth)

Decentralization: Improved slightly

Miner incentives: Short-term reduction, long-term sustainable

Arbitrary Data Usage: Flexible OP_RETURN, less witness spam

⸻

Conclusion:

Increasing OP_RETURN to 4 KB and limiting witness data to 400 KB/block leads to:

• Smaller blocks, lighter nodes

• Improved decentralization

• Sustainable long-term miner incentives

• Better direct integration with decentralized protocols like Nostr (reducing dependency on third-party timestamp services)

This could be a powerful political compromise.

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