The planned SegWit2x upgrade for Bitcoin was called off on Wednesday after developers announced that they would wait for the community to come to a broader agreement on the matter. That upgrade was originally scheduled to go into effect November 16, but saw support for the plan diminish in recent months.
After the announcement, Bitcoin’s price jumped to a new high of $7,879.06, but then settled back to around $7,200 later in the day.
The developers acknowledged that SegWit2x lacks the consensus needed to move forward at this time:
“Although we strongly believe in the need for a larger blocksize, there is something we believe is even more important: keeping the community together. Unfortunately, it is clear that we have not built sufficient consensus for a clean blocksize upgrade at this time. Continuing on the current path could divide the community and be a setback to Bitcoin’s growth. This was never the goal of Segwit2x.“
The announcement was signed by six leading members of the Bitcoin community: Mike Belshe, Wences Casares, Jihan Wu, Jeff Garzik, Peter Smith and Erik Voorhees. The group expressed confidence that rising fees will eventually move the Bitcoin community to coalesce around a solution that increases on-chain capacity.