Monero’s blockchain faced a significant challenge on Sunday as it underwent an unprecedented 18-block reorganization, marking its deepest rollback to date. This event effectively invalidated 118 previously confirmed transactions by rewinding the transaction history by 36 minutes. The reorganization started at block height 3,499,659 when Qubic, an emerging AI-focused layer-1 blockchain, revealed a longer chain that was subsequently accepted by Monero’s network nodes, leading to the orphaning of prior confirmed blocks.
This move is part of an ongoing campaign by Qubic, which had secured over half of Monero’s mining power just last month. Operating with a “useful proof-of-work” (uPoW) model, Qubic repurposes mining rewards from XMR and converts them into USDT. These funds are then reinvested to buy back and burn QUBIC tokens, further intensifying the competitive dynamics in the crypto space.
Interestingly, despite the rollback, the price of XMR defied market expectations, rising to a two-month high of $333 immediately following the attack. However, it experienced a slight reduction, trading at $307.50 at the time of reporting. Nonetheless, the cryptocurrency remains up over 6.4% within a 24-hour timeframe, with its daily trading volume soaring by 78% to reach $136 million.
In light of the instability, some voices within the crypto community are expressing deep concerns regarding the reliability of the Monero network. Vini Barbosa, a prominent crypto commentator on social media platform X, stated that he no longer considers the Monero network trustworthy and is halting his acceptance of XMR payments until the issues are addressed. Barbosa highlighted that in the last 720 blocks—roughly 24 hours—213 blocks have been orphaned, with 29.5% of all blocks in that period classified as orphaned, raising alarm over the network’s stability.
This unprecedented attack has opened a dialogue within the Monero community about potential solutions to mitigate the risk of future reorganizations. One of the proposed measures involves the introduction of DNS checkpoints—trusted snapshots of the blockchain. However, this suggestion is not without controversy, as critics argue that it may undermine the network’s decentralization principles. Researcher Rucknium pointed out on GitHub that the implementation of temporary DNS checkpoints appears increasingly likely in response to recent developments.
This situation presents a pivotal moment for Monero, as the community grapples with balancing security, decentralization, and the pathway forward in a rapidly evolving crypto landscape.
