Monero Qubic Mining Pool's Strategy Sparks Centralization Fears Hashrate Drops to Seventh Place

Monero, a privacy-focused cryptocurrency, is confronting a contentious attempt by Qubic mining pool to consolidate control over its network hashrate, led by Sergey Ivancheglo, a co-founder of IOTA. The effort has sparked significant concern within the Monero community, which views the move as a direct threat to the decentralized ethos central to the blockchain’s design. According to MiningPoolStats data, Qubic’s hashrate dominance plummeted from the top position to seventh place as users rapidly shifted away from the pool following revelations of its strategy [1]. Ivancheglo acknowledged the approach in a June 30 blog post, explaining that Qubic incentivizes Monero CPU mining through its ecosystem to fund buybacks and token burns, a tactic he claims strengthens the Qubic economy by linking its value to real-world tasks [2].

The controversy centers on Qubic’s potential to destabilize Monero’s security model. Analysts, including Dan Dadybayo of Unstoppable Wallet, have highlighted the risks of a 51% hashrate concentration, which could enable Qubic to orphan blocks, suppress transaction confirmations, stifle competition, and enforce protocol changes. “Intent doesn’t matter,” Dadybayo emphasized, noting that even if Qubic claims no malicious goals, control over a majority of the hashrate creates a “new attack vector rooted in capital rather than code” [4]. This scenario could undermine Monero’s privacy features, which are already scrutinized for their use in illicit transactions.

The community’s response has been swift and vocal. Following Ivancheglo’s admission of the strategy, Monero forums erupted with backlash, with users circulating thinly veiled threats against him. Ivancheglo himself acknowledged the hostility, referencing bounty incentives for his location in Belarus and cautioning against price manipulation. Meanwhile, Qubic has taken a covert step to obscure its influence: Ivancheglo announced plans to cease reporting the pool’s hashrate once it gains control of most of Monero’s network. This move, framed as a “countermeasure” against future non-benevolent attacks, would complicate monitoring of the network’s security [3]. Such tactics could enable Qubic to centralize mining control under the radar, contradicting Monero’s foundational principles.

The incident has broader implications for the cryptocurrency industry. Historically, large-scale mining pool centralization has sparked debates about governance and protocol adjustments. Monero’s community-driven governance has so far proven resilient, but the episode underscores vulnerabilities in privacy-focused networks that prioritize anonymity over decentralization. While Ivancheglo has framed the takeover as a test of Monero’s resilience, critics argue it exposes systemic risks in blockchain ecosystems where economic power can override technical safeguards.

No official statements have been issued by regulatory bodies like the SEC or CFTC, but the Monero development community remains vigilant. Potential outcomes include protocol changes to mitigate centralization risks or strengthened mechanisms to distribute mining power. As the situation evolves, the response to Qubic’s tactics could shape how other networks address similar threats, particularly in an industry increasingly wary of centralized control.

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[1] [title] [https://coinmarketcap.com/community/articles/6887d58bfb9c3340400260f3/]

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