The new cryptocurrency Qubic, led by IOTA co-founder Sergey Ivancheglo, has drawn attention for its attempts to gain control over the Monero network. The project uses innovative mining methods that raise concerns within the community.
Overview of the Qubic Project and Its Goals
Qubic is developing a system called 'useful proof-of-work' (uPoW) that incentivizes CPU mining of Monero to support its token economy. In this process, mined XMR is converted into USDT, which is then used to purchase and burn QUBIC tokens, creating a deflationary model.
Potential Threat to the Monero Network
Since May 18th, Qubic's share of the global hash rate on Monero has increased from less than 2% to over 27%, briefly making Qubic the largest Monero mining pool. However, following community backlash, it fell to seventh place. Ivancheglo has announced plans to seize 51% of Monero’s total hash power between August 2nd and August 31st, 2025, which may lead to serious consequences for the network.
Community and Expert Reactions
Ivancheglo also stated that starting August 2nd, Qubic will no longer publicly disclose its mining pool hash rate on Monero to highlight the risk of 51% dominance. He noted the significance of this for the cryptocurrency industry as potential attacks could arise in the future. Members of the Monero community have expressed suspicions that Qubic is renting its hashing power or using bots, but no definitive proof has emerged yet.
The situation surrounding Qubic and Monero represents a critical moment for the cryptocurrency community, threatening both the stability of the Monero network and the overall security of the crypto industry. Experts continue to analyze the potential implications of these actions.
