Privacy-focused cryptocurrency network Monero (XMR) is facing a possible dominance bid from a new blockchain project, Qubic, led by IOTA co-founder Sergey Ivancheglo (CFB).
Qubic encourages CPU mining of Monero to support its token economy through an innovative system known as “useful proof of work” (uPoW). Under this scheme, mined XMR are converted into USDT, which is then used to purchase and burn QUBIC tokens, aiming to create a deflationary model.
According to published data, Qubic’s share of the total Monero hashrate has grown from less than 2% to more than 27% since May 18. This briefly made Qubic the largest Monero mining pool, but a backlash from the community has caused it to fall to seventh place.
Ivancheglo announced on social media X his intention to capture 51% of the total computing power of Monero between August 2 and August 31, 2025. He noted that the move is aimed at demonstrating Qubic’s technology and has no malicious intent. However, he warned that this could lead to serious consequences for the Monero network, including block rejections, orphan blocks, and transaction delays.
Ivancheglo also added that Qubic will no longer publicly disclose the hashrate of its Monero mining pool as of August 2, “to highlight the risk of 51% dominance.” “Like the Monero community, I am looking for ways to counter Qubic’s 51% dominance,” he said, adding, “This is critical for the crypto industry, as we could all be victims of a malicious attack one day.”
There have been accusations in the Monero community that Qubic is renting out its computing power or using bots, but no definitive proof has been provided. Unstoppable Wallet analyst Dan Dadibayo noted that the situation is more economic than technical: “Ivancheglo creates incentives for Monero miners to leave the network voluntarily.”
Dadibayo suggested that Monero’s daily security budget is around $130,000, but for as little as $7,000 to $10,000, one party could acquire a controlling stake in the network.
*This is not investment advice.
Source: cryptonews.net
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