Bitcoin developers feud over whether to stamp out memecoins that have swarmed the network, led to an 11x spike in May 2023 processing fees, and created a logjam
The coders who maintain Bitcoin’s blockchain are clashing over whether to stamp out the meme tokens swarming the network. A torrent of speculative coins led to a record number of transactions and an 11-fold spike in processing fees on the blockchain in May, creating a logjam and forcing the Binance exchange to temporarily halt Bitcoin withdrawals. The debate over meme tokens highlights one of Bitcoin’s core challenges: striking a balance between decentralization -- which allows anyone to participate in its network -- and efficiency -- which ensures transactions are fast and cheap. It also raises questions about how much control coders should have over what happens on the blockchain, and whether they should intervene to protect Bitcoin’s credibility and value.