The community is concerned about Qubic's 51% attack on Monero

The Monero community ($XMR ) is worried about the risk that their network could be taken over by a majority. The reason is that the Qubic project is attracting up to 28% of Monero's hashrate, becoming the largest mining pool on this network.

Mining mechanism and potential risks

Qubic uses the Useful Proof-of-Work (uPoW) mechanism, encouraging Monero miners to convert mined XMR into QUBIC tokens. Subsequently, #Qubic will sell this XMR to buy and burn QUBIC, creating deflationary pressure and increasing the token's price.

Monero faces this risk due to low mining costs and many miners using simple equipment. Notably, IOTA co-founder Sergey Ivancheglo, who is behind Qubic, has publicly discussed the possibility of increasing Qubic's hashrate to over 51% in August. Although Ivancheglo denies any malicious intent, he has stated that he will stop reporting Qubic's hashrate, causing further concern in the community.

Experts warn that this is not just a story specific to Monero. The issue lies in the economic mechanism of uPoW, which has created strong financial incentives, leading miners to voluntarily provide hashrate in exchange for better profits. This serves as a warning for all PoW networks about the importance of maintaining a balance of interests to ensure decentralization and security.