Yes, they should have stayed put, or slightly increased the limits. But they didn't act rationally and totally insecure, pushing this through just to prove a point. ZKPs don't need that much data; fun fact, Citrea, cited as ine of the beneficiaries, rather uses Inscriptions instead of the op_return. Core burned all their social capital, and it was all for nothing. At the same time, they are stalling what would be the right way to enable proper two-way pegs and thus scale bitcoin: CTV+CSFS. It all makes no sense 🤷 (unless one subscribes to the theory this was a deliberate sabotage)

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Nobody uses inscriptions on purpose. They do so because opreturn requires slipstream payments and they don’t want to pay slipstream and would rather pay more to stuff it in opreturn (out of band payments cause miner centralization)