summary
The aftermarket firmware (or “MOS”) layer between ASIC hardware and mining pool software has evolved into a key strategic lever for improving efficiency and creating competitive differentiation.
Application: Currently, about 56% of the world's SHA-256 computing power runs on non-original firmware. Among third-party solutions, Vnish leads with a share of 26.4%, while the share of original firmware has dropped to 44.4%.
Growth drivers: The economic situation after the 2024 halving, fluctuations in energy prices, and the need for automated management of large-scale mining clusters continue to drive miners to turn to open and debuggable system architectures.
Open Source Turning Point: Tether’s decision to open source its own mining operating system (“MOS”) by Q4 2025 further establishes the legitimacy of this model and may democratize the maintenance costs of closed-source firmware.
Development History
| milestone | significance |
| 2011 - CGMiner | The first universal ASIC mining daemon, the foundation for all stock firmware |
| October 2018 - Braiins OS (open source) released | Implemented AsicBoost feature on Antminer S9 (saving about 13% of power consumption) and launched a fully auditable code base |
| 2018-2020 - The rise of Vnish/MSK | Commercial automatic tuning coupled with a 2-3% development fee model is popular among large Eastern European mines |
| 2022 - LuxOS launch | Luxor, an American mining pool operator, enters the firmware market, and its hashrate will increase from 3 EH/s to 13.7 EH/s in 2024 |
| March 2024 - Marathon | The first firmware and control board combination independently developed by a listed mining company has been deployed to 200,000 MARAFW mining machines and is now available to the entire industry |
| June 2025 Announcement - Tether MOS | The stablecoin giant has pledged to open source a modular peer-to-peer mining operating system, with a goal of launching it in Q4 2025. |
Market landscape (forecast to 2025)
| Firmware Vendor | Estimated network share | Core profit model | Highlights |
| Vnish | 26.40% | 2-3% development fee | Continue to increase support for S19/S23, and unlock the function of SD card bypassing the original signature lock |
| Braiins OS/+ | 5-6% (Open Source Edition) / Based on paid “+” tier | Open source core (0 charge) and 2% fee | Added Stratum V2 and Rust kernels to support most of Bitmain's mining machines |
| LuxOS | 4-5% | Subscription or mining pool rebate | Passed SOC-2 certification, and computing power increased by 350% year-on-year |
| Original firmware | 44% | none | Still dominant on new hardware under warranty |
| Others (MARAFW, Hiveon/MSK, proprietary systems) | Total about 18% | Mixed modes | MARAFW officially launched; Hiveon focuses on SaaS hosting layer |
Hardware background: Bitmain still accounts for about 75% of ASIC shipments, followed by MicroBT with 18% and Canaan with 7%. Therefore, the firmware market is the main competitive level that remains fragmented.
Miner Requirements - Why Firmware Matters
a. Efficiency and profit protection
Chip-level automatic tuning can improve energy consumption per terahertz (J/TH) by 8-20% compared to factory settings, which is crucial after subsidies are halved in April 2024.
It can run at reduced voltage when electricity prices are high and overclock when computing power prices soar, providing real-time flexibility.
b. Mining machine cluster automation
APIs for cluster-wide image refreshes, power limit scripts, and Stratum V2 block template negotiation, reducing operational costs and censorship risk at the pool level.
c. Security and auditability
Open source firmware eliminates concerns about hidden development costs or factory “kill switches” (refer to the Antbleed incident in 2017).
Built-in malware scanning to neutralize common mining botnets that hijack computing power.
d. Useful life of assets
Temperature-aware tuning can extend the life of the hashboard and postpone the renewal cycle of capital expenditures. Cambridge data shows that 86.9% of mining machines are resold or reused rather than scrapped.
The impact of open source and the entry of Tether
| Dimensions | Impact Assessment |
| Competitive pressure | Tether’s “no third-party vendor required” positioning could compress the existing 2-3% development fee economic model, forcing vendors to move to value-added SaaS or hybrid licensing models. |
| Decentralization | MOS is designed to allow a large number of new miners to operate peer-to-peer without the need for a closed coordination layer, which is consistent with the idea of Stratum V2 where miners build blocks directly. |
| Ecosystem Standardization | A publicly documented IoT-style architecture could drive the development of common APIs across hardware product lines, reducing integration costs for immersion cooling, demand response, and AI-assisted maintenance. |
| Tether’s strategic flexibility | Deep vertical integration - USDT issuer + energy investment + mining firmware, creates a potential hedge against stablecoin reserve review and provides a real endorsement narrative. Investors should pay attention to the governance and license selection of the MOS code base (such as GPL v3 vs. Apache 2.0). |
Investment impact
a. Firmware vendor
There is a risk of pricing compression, but the total market size is expanding; companies like Luxor that have adjacent revenues (mining pools, brokerage, derivatives) are more resilient.
If Tether/Braiins push for a fully open source alternative, Vnish's large share and closed source code may come under pressure.
b. ASIC Manufacturer
Lock-in strategies (signed images) have the potential to alienate customers; partnering with open source architectures or launching “high-performance” official images may keep demand at a premium.
Modular control boards, such as Marathon's UCB 2100, suggest that it might be possible to bypass the factory control board entirely.
c. Mining Operators
Economic benefits increasingly depend on software sophistication on par with energy procurement; allocating R&D resources or partnering with firmware vendors is now part of the core strategy.
If miners can demonstrate higher J/TH through open source firmware, the regulatory narrative around energy usage will be strengthened.
d. Capital Markets
Publicly traded mining companies that advertise their own firmware (MARA, CLSK, RIOT) may receive a valuation premium due to their intellectual property and profit defensibility.
Investors should carefully review whether development expenses or subscription revenue are included in operating income or treated as a cost reduction.
Key risks
Security vulnerabilities: Open source code bases attract scrutiny, but also public exploits; strict code signing and continuous integration audits are critical.
Regulatory uncertainty: In some jurisdictions, open source algorithms may be incorrectly labeled as “export controlled.”
Factory resistance: Firmware locks may be upgraded, increasing capital expenditures for replacing control boards.
in conclusion
The MOS layer has evolved from a hobbyist hack to a critical profit center and decentralization vehicle. As open source initiatives (now backed by heavyweights like Tether) gain momentum, competitive advantage will shift from closed-source auto-tuning to ecosystem coverage, data analytics, and energy grid integration services.
Investors seeking to invest in Bitcoin mining should evaluate mining operators and service providers from the perspective of software leverage and open source fit, rather than just hardware size. The next S-curve of efficiency will be written by code.
Disclaimer: This article does not constitute investment advice. If you need to reprint or reprint, please contact hello@xbank-labs.com
