Bitcoin users are being warned to be careful if BIP-110 produces a minority fork, because moving coins on one chain could expose coins on the other to replay attacks.

The issue is not that BIP-110 has already split Bitcoin. The proposal is a temporary soft fork intended to restrict certain non-payment data for one year, and its own specification describes a 55% activation threshold of 1,109 blocks in a 2,016-block difficulty period. The BIP-110 monitor showed miner signaling well below that threshold, so a split remains conditional and uncertain.

The risk comes from user behavior if a minority chain appears anyway. CoinDesk reported that developer Kevin Loaec warned holders against trying to sell forked coins quickly, because a transaction valid on the minority chain may be replayed on Bitcoin if there is no protection separating the two histories. In that scenario, a buyer or counterparty could receive the user's actual BTC as well as the forked asset.

BIP-110's text says pre-activation UTXOs are grandfathered so existing coins are not frozen by the soft fork. That does not remove the operational replay concern for people who voluntarily move coins during a contested split. The conservative advice is simple: if a BIP-110 branch appears and the economics are unclear, doing nothing avoids creating a transaction that another party can replay.