Qubic, decentralized computing protocol with its own proof of work (proof of work), announced on May 4 the definitive closure of its Monero (XMR) mining phase, reporting the transition to a new economic model within its ecosystem with the full activation of its Dogecoin (DOGE) mining architecture.
According to the organization, the transition has been made in several phases, starting between April 1 and 30. Phase 3, which has just come into effect currently, involves the complete removal of the dispatcher of XMR and the exclusive allocation of ASICs to DOGE mining. The central fact of this change lies in the implementation of a mechanism through which the income generated by mining is allocated to the permanent reduction of the supply of the native asset, a strategy that seeks to modify its dynamics of scarcity and value.
It is worth remembering that Qubic is a blockchain protocol that operates under the concept of Useful Proof of Work, where computing power is simultaneously allocated to external mining and to training Aigarth, its artificial intelligence (AI) initiative. Its native token, QU, is the reward distribution instrument and the target asset of the buyback and burn mechanism activated since the XMR stage.
The organization maintains that the mechanism operates autonomously: mining revenues are converted into stablecoins, used to buy back QU (platform token) on the open market and the undistributed surplus is burned. Qubic suggests that this scheme generates continuous buying pressure about your token, without manual intervention from the team.
The move to Dogecoin: a different architecture
The change in asset is not cosmetic, according to the firm. Under the XMR model, the network’s CPUs alternated between mining and AI training, limiting both tasks.
Dogecoin uses the Scrypt algorithm, which runs on dedicated ASIC hardware, physically separating workloads:ASICs mine DOGE while CPUs and GPUs are fully allocated to AI training. Qubic notes that this eliminates the interleaving model and allows both streams to operate 100% in parallel.
In terms of performance, the organization published data from the first day of Phase 3 comparing your system with pools traditional: mining DOGE via Qubic generates USD 7.94 per day compared to USD 6.02 in conventional pools with the same hardwarea difference of USD 1.92 per day per machine.
The potential scale of the new asset is, according to Qubic, ten times higher. The organization points out that Dogecoin produces approximately 14.4 million coins per day, which at current prices is equivalent to about USD 1.44 million in daily issuance, compared to the approximately USD 144,000 per day that Monero generated.
In an environment where many projects depend on issuance or inflationary incentives, Qubic’s proposal proposes a shift towards more aggressive deflationary models. Furthermore, the closure of the phase linked to XMR suggests a strategic change that could impact both users and participants in the mining ecosystem.
Background with controversy
The XMR stage was not without incident. Before its closure, Qubic’s involvement in the Monero network raised red flags in the cryptocurrency community.
As reported by CriptoNoticias, the Qubic pool lmanaged to position itself as the second largest XMR and concentrated enough computing power to execute what the firm itself called a 51% “benevolent attack,” rated by analysts as a risk for decentralization and the price of XMR.
This event caused the falsification of 7 blocks in the Monero chain, an episode in which Qubic executed at least three rewrites of the network’s accounting record. Voices within the ecosystem interpreted these events as a demonstration of XMR’s structural vulnerabilities against networks with higher decentralized hashrate.
Qubic did not address this background in its May 4 statement. The organization only framed its passage through XMR as a technical validation of the protocol– The network captured up to 45% of Monero’s global hashrate in one epoch, found 3,496 blocks, and ran a public demonstration of 51% dominance.
Qubic’s architecture poses the dilemma of how an agnostic chain—capable of connecting to any mining network without structural redesign—becomes the core element of its long-term model. If the DOGE phase replicates the adoption curve that it had with XMR, but on a network ten times larger in daily emission, a scenario of a 51% attack on DOGE could be seen.