Relax OP_RETURN standardness restrictions

The dialogue surrounding the effectiveness of standardness rules in Bitcoin's ecosystem, as highlighted by Sjors Provoost, provides a multifaceted view on the adaptability and challenges within blockchain technology's regulatory mechanisms. Initially, standardness rules played a crucial role when financial incentives to bypass them were minimal, catering to a smaller, less valuable network concerned with operational costs due to an expanding blockchain. However, the landscape has dramatically shifted, with consistent block fullness over the years rendering the concerns of increased node operation costs obsolete. This shift suggests that the original rationale for such rules may no longer hold weight in today's environment where transaction data volume remains constant.

Provoost challenges the notion that standardness rules can effectively deter million-dollar business incentives from developing infrastructure that bypasses these norms, especially as Bitcoin's subsidy decreases and economic incentives escalate. This perspective underscores the inherent tension between maintaining a decentralized ethos and accommodating burgeoning economic demands within the blockchain space. The assertion is that miners, driven by significant fees, are unlikely to voluntarily ignore profitable transactions, thereby questioning the efficacy of policy enforcement in a decentralized mining landscape.

Moreover, the discussion extends into the realm of consensus changes as a means to regulate chain usage against potentially harmful applications, emphasizing that such changes are universally binding and do not incentivize circumvention. This highlights the fundamental principle of Bitcoin's proof-of-work (PoW) mechanism: to prevent censorship and ensure anyone can participate in mining without permission, thus fostering a dynamic and inclusive mining community. Provoost posits that this permissionless nature is essential for the network's health, suggesting that deviating towards private transaction rails due to economic pressures could undermine one of Bitcoin's core properties.

In light of these considerations, Provoost leans towards relaxing OP_RETURN limits or even removing them entirely, acknowledging the tangible demand for such transactions and the potential harm in pushing this demand outside the public network. While expressing reservations about adjusting other standardness rules that impact the public’s ability to verify transactions and maintain incentive compatibility, he concedes that the unique circumstances surrounding OP_RETURN limits merit a different approach. This stance represents a pragmatic recognition of evolving economic demands and the importance of maintaining Bitcoin's foundational principles amidst these changes.