Qubic Just Mined Monero — and Redefined What Proof of Work Can Be

Qubic, a decentralized compute and AI Layer 1 protocol, has successfully demonstrated its Useful Proof of Work (uPoW) concept by leveraging Monero and Tari merge mining, resulting in a surge to over 10% of Monero's global hashrate and significant profitability for Qubic miners at $3.13/day per CPU. The protocol converts mined Monero and Tari rewards into USDT to buy and burn QUBIC tokens, creating a deflationary tokenomic model. This development positions Qubic to expand uPoW applications beyond mining into areas like distributed AI training and selling computing power.

Analysis

Qubic, a decentralized compute and AI Layer 1 protocol, has reported a significant technical achievement with the successful demonstration of its Useful Proof of Work (uPoW) concept, utilizing Monero (XMR) and Tari merge mining. This validation has translated into substantial network growth, with Qubic's contribution to Monero's global hashrate surging from under 2% to over 10% since May 18, indicating rapid adoption within the mining community. The protocol highlights superior profitability for its miners, citing a daily profit of $3.13 per CPU for Qubic mining, compared to approximately $1.65/day for Tari (merge mined) and $0.64/day for Monero, with epoch 163 generating $14.20 profit per miner in seven days. A key feature of Qubic's tokenomics is its deflationary mechanism: all Monero and Tari rewards mined by the network are converted into USDT, used to purchase QUBIC tokens from the open market, and subsequently burned, directly linking network utility to token scarcity. Qubic, verified by CertiK as the "Fastest Blockchain in the World," plans to expand its uPoW applications beyond mining into areas such as distributed AI training, selling computing power to companies, and supporting autonomous agent infrastructure, aiming to leverage its zero-fee transactions and instant finality.

Key Decisions for Investors

• Investors focused on emerging Layer 1 protocols and decentralized computing should note Qubic's demonstrated Useful Proof of Work, its reported significant miner profitability ($3.13/day per CPU), and its deflationary tokenomics linked to real-world Monero mining activity.
• Monitor the sustainability of Qubic's rapid hashrate expansion (now exceeding 10% of Monero's global hashrate) and the execution of its roadmap to diversify uPoW applications into AI training and enterprise computing power sales.
• Consider the potential impact of Qubic's token burn mechanism on its supply dynamics, alongside the competitive risks and opportunities as it scales its operations and aims to attract broader adoption for its compute and AI services.