According to @BitMEXResearch, the authors of node software implementations decide the default policy, and a small minority of node operators can loosen the effective relay policy on the network, shaping how transactions propagate across the network (Source: @BitMEXResearch on X, Oct 20, 2025). According to @BitMEXResearch, this underscores the operational influence of node runners over effective network policy enforcement and transaction relay behavior (Source: @BitMEXResearch on X, Oct 20, 2025).

According to @BitMEXResearch, the recent Bitcoin Core update raised the OP_RETURN relay policy filter limit but did not change the actual OP_RETURN size limit or the Bitcoin blocksize limit, so this is not a blocksize increase (source: @BitMEXResearch). According to @BitMEXResearch, maintaining a strict blocksize cap is presented as the robust long-term defense against spam-like data (e.g., music collections or encrypted documents), whereas relay filters are neither effective nor decentralization-friendly because a small minority of nodes can bypass them and effective filtering creates centralization pressure (source: @BitMEXResearch). According to @BitMEXResearch, the small-block position remains intact with a reasonable blocksize limit designed to protect the network from spam, confirming no structural capacity expansion for BTC introduced by this change, a status important for traders tracking on-chain conditions and decentralization risks (source: @BitMEXResearch).

According to BitMEX Research, many nodes opting for Bitcoin Knots are primarily signaling dissatisfaction with Bitcoin Core, echoing the blocksize war when running Bitcoin Unlimited was ineffective at achieving change (source: BitMEX Research on X, Oct 18, 2025). According to BitMEX Research, Knots is effectively Core, so attempts to tighten Bitcoin relay policy by running Knots will not succeed even if a majority of nodes adopt it (source: BitMEX Research on X, Oct 18, 2025). According to BitMEX Research, this means traders should not expect Knots adoption to trigger network-wide relay or mempool policy shifts when assessing BTC fee dynamics and transaction propagation risks (source: BitMEX Research on X, Oct 18, 2025).

According to @Excellion, the Bitcoin dust limit is just a relay filter and Bitcoin Core should remove it to reflect actual network usage, as stated in his post on X: https://twitter.com/Excellion/status/1978656208560226566. In Bitcoin Core policy, the dust limit marks very small outputs as non-standard for relay to mitigate spam, with typical thresholds (e.g., ~546 sats for P2PKH at a 1 sat/vB min relay fee) derived from policy rules and cost assumptions, affecting what transactions propagate across the network; source: https://en.bitcoin.it/wiki/Dust and https://github.com/bitcoin/bitcoin/blob/master/doc/policy/standard_transactions.md. Any change to remove or alter this filter would require a reviewed code change through the Bitcoin Core contribution and PR process, which governs how consensus and policy modifications are evaluated and merged; source: https://github.com/bitcoin/bitcoin/blob/master/CONTRIBUTING.md. For traders, relay policy directly influences which transactions reach miners and can impact fee pressure and confirmation times when blocks are full, affecting on-chain settlement costs and timing for BTC flows; source: https://developer.bitcoin.org/devguide/transactions.html and https://github.com/bitcoin/bitcoin/blob/master/doc/policy/standard_transactions.md.

According to BitMEX Research, some pro-Knots voices are amplifying CSAM risk and, paradoxically, this fear narrative could increase the chance of CSAM appearing on-chain more than raising the default relay policy limit would, highlighting a narrative-over-policy risk dynamic for BTC. Source: BitMEX Research, Oct 10, 2025. According to BitMEX Research, the situation mirrors the blocksize war, where messaging harmed Bitcoin’s consumer payments narrative more than the blocksize rule itself, implying narrative-driven headwinds can outweigh technical settings in shaping near-term Bitcoin market sentiment. Source: BitMEX Research, Oct 10, 2025. According to BitMEX Research, BTC traders should monitor three signals: the intensity of CSAM-related discourse, communications on Bitcoin Knots relay policy defaults, and references to blocksize war precedents as potential sentiment catalysts. Source: BitMEX Research, Oct 10, 2025.

According to @BitMEXResearch, even a small minority of home Bitcoin node operators can relax an incentive-incompatible relay policy, demonstrating that end users can materially influence transaction relay rules. Source: @BitMEXResearch on X, Oct 7, 2025. The post frames this user-driven leverage as a core strength of Bitcoin’s decentralization and censorship resistance, a resilience factor traders monitor when assessing BTC network risk and fee-market reliability. Source: @BitMEXResearch on X, Oct 7, 2025. No protocol change or price guidance was announced; the signal is that node policy choices matter, so traders should watch node policy discussions for potential shifts in transaction propagation conditions that could impact market microstructure. Source: @BitMEXResearch on X, Oct 7, 2025.

According to @adam3us, the network policy Schelling point for transaction relaying has shifted, with a tolerant minority now setting a more permissive relay limit through preferential peering, source: @adam3us on X, Sep 14, 2025. This change indicates relay behavior is no longer anchored by the prior default node policy, increasing heterogeneity in propagation across peering clusters that traders must account for in on-chain execution, source: @adam3us on X, Sep 14, 2025. Latency-sensitive strategies should assume uneven mempool visibility and variable relay speeds between clusters and adjust fee models, routing, and timing to manage slippage and arbitrage risk, source: @adam3us on X, Sep 14, 2025. Risk monitoring should include multi-peer propagation checks and cross-cluster mempool sampling to detect relay bottlenecks before submitting time-critical orders, source: @adam3us on X, Sep 14, 2025.

According to BitMEX Research, in disputes over Bitcoin's consensus rules, the most intolerant participants are likely to prevail, while in relay policy conflicts, the most tolerant approach tends to win (source: BitMEX Research, Twitter, May 12, 2025). For traders, this insight indicates that hardline stances on core protocol changes could drive significant volatility and potential chain splits, impacting Bitcoin price movements and liquidity. Conversely, flexible relay policies may enhance network robustness, fostering stability in transaction processing and potentially reducing short-term trading risks. Understanding these dynamics is crucial for market participants assessing risks around contentious upgrades and forks.