Monero’s decentralized foundations are under pressure as Sergey Ivancheglo, co-founder of IOTA and creator of the Qubic project, aims to take control of over half its network hash rate in August.
Qubic, which runs on a novel “useful proof-of-work” system, has incentivized miners to redirect their computational power to Monero. The mined XMR is sold for USDT, which is then used to buy and burn QUBIC tokens—creating a unique, deflationary loop for the new blockchain venture.
This strategy has already shaken Monero’s mining landscape. In just weeks, Qubic’s presence surged from under 2% to more than 27% of the network’s hash rate, briefly making it the dominant mining pool. Community backlash has since forced its rank down, but Ivancheglo is pressing on.
He recently announced plans to cross the 51% hash power threshold between August 2 and 31, describing it as a “demonstration” rather than an attack. Despite assurances of no malicious intent, the risks are real—experts warn this could cause block rejections, orphaned chains, and serious network congestion.
In a twist, Ivancheglo also said Qubic will cease disclosing its hash rate figures on Monero starting in August. While some in the Monero community accuse Qubic of hash rental or bot-based manipulation, no concrete evidence has emerged.
According to Unstoppable Wallet’s Dan Dadybayo, the threat isn’t necessarily technical—it’s economic. Monero’s daily mining incentives cost roughly $130,000, but achieving majority control could cost as little as $7,000–$10,000. In Dadybayo’s view, Qubic is simply luring miners away with better incentives.
As the August window approaches, Monero’s core strengths—anonymity and decentralization—are about to face their toughest challenge yet.
Alexander Stefanov
Reporter at Coindoo
Alex is an experienced financial journalist and cryptocurrency enthusiast. With over 8 years of experience covering the crypto, blockchain, and fintech industries, he is well-versed in the complex and ever-evolving world of digital assets. His insightful and thought-provoking articles provide readers with a clear picture of the latest developments and trends in the market. His approach allows him to break down complex ideas into accessible and in-depth content. Follow his publications to stay up to date with the most important trends and topics.
Source: https://coindoo.com/this-emerging-project-could-overtake-moneros-network/