Anger is brewing within the Monero crypto community! Why? Because a mining pool is becoming more and more important! So much so that it now threatens the decentralization of Monero crypto mining.
Monero Crypto Mining
The crypto Monero (XMR) uses the same protocol as Bitcoin, namely Proof-Of-Work. Mining, in principle, is therefore relatively similar. Miners are thus in charge of validating user transactions.
As a reward for the computing capabilities put into the service of the network, miners receive a certain number of coins. This is how new coins are put into circulation. For Monero, the reward for each mined block is 0.8 XMR. From May 2022, this will increase to 0.6 XMR.
Mining is therefore an essential activity for the network of crypto. But the problem begins when this activity ends up in the hands of only a few minors…
MineXMR Owns 44% Of The Total Hashrate Of The Monero Network
According to data from pools.xmr.wiki, the biggest player in Monero mining is the MineXMR pool. On its own, it accounts for almost 40% of the total hashrate at the time of writing this article. A few hours ago, this percentage was approaching 45%. Behind MineXMR are mainly nanopools with 21% of the hash rate and SupportXR with 17% of the hash rate.
MineXMR’s stranglehold on mining Monero coins has the community worried. Indeed, in essence, it works in a decentralized way. But how can decentralization be ensured if the validation of blocks and the creation of new coins are mostly in the hands of a single pool?
In particular, a mining pool that gets too close to the 51% mark is not a healthy situation. There is indeed a risk of suffering a “51% attack.” Such an attack occurs when a miner owns more than the majority of the power of the network (hence the 51%). Such a miner can create big problems for the network like double-spending or blockchain splits.
“We understand that people are concerned about the hashrate that MineXMR currently has (…) We have announced an increase in pool fees and continue to monitor the situation. » Administrator of MinXMR
Following the discontent on the social networks of the Monero community, the mining pool pointed out MineXMR reacted. The pool has indicated that it takes the situation seriously and intends to increase the fees to join the pool.