From Cointelegraph

May 06, 2025 02:04:00 AM:

Bitcoin Core developers have decided to remove a limit on transaction data in the next network upgrade, enabling more data to be included in a more efficient way. The long-standing limit was originally a signal that has outlived its utility according to Bitcoin developer Greg Sanders. OP_RETURN is a special type of BTC transaction output that allows storing small amounts of data on the blockchain.

Benefits of removing the limit include a cleaner UTXO set, more consistent behavior across the network, and better alignment with how Bitcoin is actually being used. Three possible paths were considered: keeping the cap, raising the cap, and removing the cap, which was ultimately decided upon after earning broad support. Critics of the proposal expressed concerns about undisclosed conflicts of interest and deprioritizing Bitcoin’s financial utility.

Read more at Cointelegraph: Bitcoin Core to unilaterally remove controversial OP-Return limit