#Monero Decentralization

The decentralization of the hashrate must be complemented by economic incentives so that network security is sustainable over time.

While researching PoW blockchains that suffered hashrate attacks and implemented protocol modifications, I came across FIRO, which is also a privacy-focused network, backed by protocols such as Lelantus Spark for total anonymity and Dandelion++ to obfuscate transaction origins.

It implemented a hybrid mechanism: Proof-of-Work combined with masternodes that issue ChainLocks via LLMQ, granting near-instant finality and protecting the chain from 51% attacks. To operate a masternode, 1,000 FIRO are required as collateral, which acts as a financial guarantee and reduces the amount of coins in circulation.

This means that to compromise the network, an attacker would not only need significant control of the mining power, but also of those masternodes, at a prohibitive cost.

I'm not saying this will be the solution, but it's interesting to analyze it to learn from other people's experiences.