Pi Network, launched in March 2019, is a unique cryptocurrency that employs a Proof-of-Work mechanism, allowing users to mine Pi coins through their mobile phones. It's crucial to note that Pi Network is not officially traded on any exchanges, making its value speculative.
The primary feature of Pi Network is its mobile mining functionality, enabling users to mine Pi coins on their mobile devices via the Pi mobile application. Through participation in block validation, users earn rewards in Pi coins.
Pi coin, the native token of Pi Network, holds utility within the Pi ecosystem. Users can utilize Pi coins to pay transaction fees and conduct transactions. The mainnet supply model sets a maximum total supply of 100 billion Pi coins.
Investors engaging with Pi Network are strongly encouraged to conduct thorough research due to instances of unauthorized Pi cryptocurrency listings. Positioned as a platform simplifying cryptocurrency accessibility, Pi Network aims to introduce more individuals to crypto through straightforward mining and management systems. Launched officially on March 14, 2019, by Nicolas Kokkalis and Chengdiao Fan, Pi Network has gained substantial popularity, boasting 33 million members as of 2022.
Pi Network users, commonly referred to as Pioneers, can earn Pi coins by fulfilling various roles, such as running nodes on personal computers, referring new members, or mining Pi coins on mobile devices. During the beta stage, the mobile application simulates the mining system, which will be fully launched with the mainnet's functionality. Members participating in the mobile application contribute to block validation and receive Pi cryptocurrency rewards.
When active, mobile miners connect to nodes, inquire about transaction records on the ledger, obtain the latest block information, and receive rewards for their mining efforts. This distinctive approach positions Pi Network as an innovative player in the cryptocurrency space, emphasizing accessibility and user engagement.
Pi Network operates on the Stellar Consensus Protocol (SCP), a system developed by David Mazières, the Chief Scientist at Stellar Development Foundation for the Stellar blockchain. SCP utilizes a unique mechanism called Federated Byzantine Agreements to ensure the accuracy and trustworthiness of updates to a distributed ledger.
The SCP protocol involves a genuine voting system where nodes within the network cast votes on the validity of a block and the subsequent block to be mined. A block is only confirmed when a majority of nodes reach an agreement on its validity and its position in the mining sequence. Node election, a process overseen by the system creator, determines the participating nodes. While SCP is praised for its energy efficiency, it has faced criticism for perceived centralization.
Reward system and Tokenomics of Pi:
Pi coin serves as the native token of the Pi Network, with users earning these coins through the mining process. Holders can utilize Pi coins for transaction fees and transactions within the Pi ecosystem's applications and marketplaces. The Pi coin supply operates in response to network activities, distributed exclusively as user rewards.
Although there wasn't an official pre-mine, participants in the beta mining program have the opportunity to transfer their tokens to the mainnet. Unlike many other cryptocurrencies, Pi Network doesn't follow a fixed total supply model.
Upon joining Pi Network, users are allocated a predetermined number of Pi coins, which they mine over time. This allocation is exclusive to the first 100 million users on the Pi Network, limiting their lifetime mining to this designated amount. A referral system is in place, rewarding users who bring in new members to the Pi cryptocurrency project.
The Pi coin mining protocol generates an additional Pi coin for every coin minted as a member or referral reward, reserved to compensate developers on the network. The total Pi coin supply encompasses member, referral, and developer rewards, with the mainnet supply model capping at a maximum total supply of 100 billion Pi coins.
The Governance Model:
Pi Network employs a 'Semi-DAO' governance model, diverging from traditional decentralized governance structures. In this model, a central team retains control while the community plays a significant role in decision-making. The governance approach evolves through a two-phase plan based on the number of active users.
If active Pi Network users are below five million, the team directly seeks input from the broader community on proposals. Utilizing the project's forum within the mobile mining application and other engagement platforms, the team initiates discussions. Inputs from the community are considered, leading to the team's final decision. As the community surpasses five million participants, the second phase activates. A committee, comprised of recognized contributors from the community, is formed to develop proposals and organize community input. The Pi Network forum remains open for additional community contributions, culminating in a final decision by the committee.
Testnet and Mainnet:
Originally conceived as a research project, Pi Network initiated its beta phase in 2018. The Testnet, launched approximately two years later, allowed Pi Network developers to test features before their integration into the mainnet.
In late 2021, Pi Network unveiled its mainnet, providing pioneers with the ability to create proper wallets and transfer mined Pi cryptocurrency for peer-to-peer transactions.
For a step-by-step guide on creating a mainnet wallet and transferring Pi coins, refer to this video tutorial.
Mainnet migration involves a KYC verification process and specific requirements for users to qualify for owning and operating a valid wallet. Pioneers delaying their KYC verification beyond six months risk their Pi not being transferred to the mainnet, and it won't contribute to the Pi Network system's base mining rate. Such unverified Pi will be reallocated for mining within the same year by other verified pioneers.
The mandatory KYC process has sparked considerable debate, with accusations of complete centralization directed at the project. The discussion around this aspect continues to be a focal point within the Pi Network community.
Assessing Pi Network: Legitimacy and Recent Developments
For those intrigued by Pi Network, the prevailing skepticism surrounding the value of Pi coins and uncertainties about the project's authenticity might have cast a shadow on their interest.
A significant factor contributing to this skepticism is the prolonged delay in launching the mainnet and listing the Pi cryptocurrency on exchanges. These delays, coupled with users' inability to transfer their mined Pi coins and skepticism about mobile mining, have led to Pi Network being labeled as a potentially elaborate marketing scheme, raising concerns of it possibly evolving into a scam. The persistently growing Pi Network community, juxtaposed with the deferred listing of mined cryptocurrencies on exchanges, has only fueled these suspicions.
In response to these apprehensions, the Pi crypto team has taken steps to demonstrate the project's credibility. The recent launch of the mainnet marks a pivotal development, allowing users to utilize their Pi cryptocurrency for transactions. Additionally, there are rumors circulating about several marketplaces considering Pi coins as an accepted form of payment.
These recent advancements suggest that the Pi crypto team is actively addressing concerns and striving to establish the legitimacy of the project. However, potential investors are still advised to exercise caution, conduct thorough research, and stay informed about the ongoing developments within the Pi Network ecosystem.
PiChain International is reportedly in the development stages, aiming to enable merchants to establish stores and facilitate transactions using Pi coins. Ongoing updates on social media indicate active development efforts, suggesting that the marketplace is approaching its initial release. However, the full extent of its features and functionalities remains to be revealed.
The fundamental question persists regarding the authenticity and value of the Pi cryptocurrency. Despite notable technological advancements and the establishment of a community over the past four years, uncertainties linger about its credibility.
While Pi Network has introduced a user-friendly approach to cryptocurrency mining, making it more understandable for enthusiasts, doubts persist about the project's ability to fulfill its promises. The concept of earning cryptocurrency effortlessly through mobile mining has garnered support, yet skepticism prevails.
The broader cryptocurrency community remains largely hesitant about the legitimacy of Pi Network's mobile mining features, questioning the project's true intentions. Even with the mainnet launch and noteworthy developments within the Pi community, sentiments have not shifted significantly. The fact that the Pi coin remains unlisted on exchanges, making it non-negotiable at the moment, adds to the prevailing skepticism.
As with any cryptocurrency venture, investors are strongly advised to exercise caution. Cryptocurrencies inherently pose high risks, and the Pi coin is no exception. Prudent decision-making and careful consideration of potential risks are essential in navigating the dynamic landscape of cryptocurrency investments.