The mining world was rocked this week after leaked documents were circulating across multiple telegram groups proving that Braiins has been operating a white label of Luxor's firmware. A white label is when a company allows another entity to brand and distribute their software to other people. This has been a common practice amongst mining pools like Luxor as it allows them to secure hashrate without building infrastructure themselves.
Firmware is the software that controls a Bitcoin miner. Many miners opt into using aftermarket firmware instead of of the base firmware that comes on the machines, as it allows them to have significantly more control over their machines. Braiins has been a staple in the mining industry as they have spent an incredible amount of money on marketing.
Nick Hanson, the CEO of Luxor, commented on news saying, "It's unfortunate that this has come to light. I wanted to keep this a secret but I guess it's out in the open now."
Luxor's firmware, which was publicly released in 2023, has been received with much fanfare. Many individuals in the space have been skeptical though and have chosen to stay with already established players such as Braiins. The news that Braiins is a white label of Lux OS will likely mean that more individuals opt to use Luxor's firmware instead which could spell trouble for Braiins Pool which lost almost half of their hashrate after Riot switched from using their services.
Many are speculating that Riot's decision to switch may have been a result of them finding out about the white label agreement. Riot has yet to comment on these revelations though.
Marty Bent shared his thoughts on Twitter saying, "I'm really disappointed to hear this news. Braiins has been a sponsor of TFTC and the only reason I ever considered them as a sponsor was because they seemed like good Bitcoiners. Finding out that they are a white label of a bunch of shitcoiners like Luxor feels almost as bad as when we had Compass as our sponsor and they rug pulled all of our listeners."
The ramifications of Luxor being the brains behind Braiins is unknown at this time, but the mining world waits in anticipation for this to play out.