Sergey Ivancheglo Expands Qubic's Influence on Monero: Rise from 2% to 27% in Hashrate

The co-founder of IOTA, Sergey Ivancheglo, known in the community as CFB, has positioned his blockchain project Qubic as a significant player in the Monero network. Through an incentive mechanism based on “useful proof of work” (uPoW), Ivancheglo has concentrated an exponentially growing share of the network’s computational power. Since mid-May, when it accounted for less than 2% of the total hashrate, its share has risen to 27%, raising alarms about centralization in a network that was originally founded to ensure decentralization and privacy.

The Qubic project drives massive CPU mining under the uPoW model

Qubic represents Sergey Ivancheglo’s vision to demonstrate the economic viability of CPU mining instead of specialized hardware. The “useful proof of work” model proposes that miners perform calculations that contribute simultaneously to the Qubic protocol and the Monero network, creating aligned incentives. However, this strategy of attracting computational power has transformed Monero’s security landscape faster than many expected.

Rapid escalation: from marginal to majority influence

The shift from less than 2% to 27% of the hashrate in just a few months highlights how quickly Qubic has captured mining resources. This concentration of power raises fundamental questions about the resilience of Monero’s consensus. While 27% is still below the critical 51% threshold, the trajectory suggests the project could continue expanding its share. The Monero community has expressed concern over the possibility of a single entity dominating the network, especially in an ecosystem where resistance to censorship is a core value.

Sergey Ivancheglo denies malicious intent but acknowledges potential disruptions

In response to community alerts, Ivancheglo has characterized this operation as an “economic demonstration” of Qubic’s potential. He claims to have no intention of attacking or sabotaging Monero; however, he has been candid in acknowledging that his activity could destabilize the network’s normal operation. This partial transparency—admitting the impact while denying malice—has led to divisions in interpretations of his strategic move.

Darkness plan: Qubic will cease publicly disclosing hashrate participation

Starting August 2, Sergey Ivancheglo announced, Qubic will stop publicly reporting its share of Monero’s computational power. The official justification points to “raising awareness about the risk of 51% consensus capture.” Paradoxically, withdrawing from transparency as a way to highlight a vulnerability has generated skepticism in the community, which interprets the silence as a sign that Qubic may continue to concentrate influence without public scrutiny. This strategic shift underscores the ethical and technical complexities of Ivancheglo’s experiment with Qubic.