In a bold and controversial move, Qubic, co-founded by IOTA’s Sergey Ivancheglo, has announced plans to control 51% of Monero’s hashrate, sparking intense debate and market volatility. While Monero’s price dipped 1.1%, QUBIC tokens surged 9.5%. Here’s what you need to know.
What is Qubic’s 51% Monero Hashrate Plan?
Qubic aims to control 51% of Monero’s hashrate from August 2 to August 31 as part of an “economic experiment” to test Proof-of-Work (PoW) vulnerabilities. The platform will convert mined Monero (XMR) into USDT to buy and burn QUBIC tokens, creating a deflationary model. Key points:
- Qubic became Monero’s largest mining pool in May, reaching 27% hashrate.
- It has since dropped to fourth place but plans a resurgence.
- The move has raised concerns about centralization and censorship risks.
Why is the Cryptocurrency Community Alarmed?
Analyst Dan Dadibayo warns that 51% control poses significant risks, regardless of intent. Potential threats include:
- Block rejection and transaction delays.
- Suppression of competing miners.
- Enforcement of protocol changes.
Monero’s community has rallied behind supportxmr.com, which now holds ~33% of the hashrate to counterbalance Qubic.
Market Impact: Monero Dips, QUBIC Surges
The announcement triggered a 1.1% drop in Monero’s price to $323, while QUBIC surged 9.5%. This reflects:
- Skepticism about Qubic’s motives.
- Curiosity about the experiment’s outcomes.
- Broader concerns about miner centralization in blockchain networks.
Blockchain Security at Stake
Qubic claims its goal is to expose PoW flaws, but critics argue even benign experiments can create systemic risks. The debate highlights the tension between innovation and network security in decentralized systems.
FAQs
1. What is Qubic’s goal with the 51% Monero hashrate grab?
Qubic describes it as an “economic experiment” to test PoW vulnerabilities and create a deflationary model for QUBIC tokens.
2. Why is 51% control risky?
It allows a single entity to reject blocks, delay transactions, and enforce protocol changes, undermining decentralization.
3. How has Monero’s community responded?
They’ve rallied behind supportxmr.com, which now holds ~33% of the hashrate to counterbalance Qubic.
4. What’s the market reaction?
Monero’s price dipped 1.1%, while QUBIC surged 9.5%, reflecting mixed sentiment.
