Pi: A Cryptocurrency and Smart Contract Platform Safeguarded and Operated by Ordinary People

What is Pi

Friend, imagine if there were a digital currency you could "mine" just by tapping your phone—no expensive electricity bills or specialized equipment needed. Sounds magical, right?
Pi is exactly such a project, known as the

. Its goal is to make it easy for everyone to participate in the world of cryptocurrency, as simple as using a mobile app.

In short, Pi Network is a "mobile-first" blockchain project aiming to build a cryptocurrency and smart contract platform maintained and operated by ordinary people. The typical user flow is: open the Pi app daily, tap a button to "check in," and "mine" Pi coins. This process consumes very little phone performance and battery.

Project Vision and Value Proposition

Pi Network has an ambitious vision: it hopes to

, powered by Pi coins. Its mission is to .

The core problem it aims to solve is the high barrier to entry of many mainstream cryptocurrencies (like Bitcoin). Think about it: Bitcoin mining requires significant investment in specialized "mining rigs" and huge electricity consumption, which deters ordinary people. Pi Network, by enabling mining via mobile phones, allows everyone to participate,

.

Compared to traditional financial systems, Pi Network also seeks to address issues with centralized institutions (like banks): high fees, high entry barriers, and excessive user data collection. Its aim is to economically empower millions who are financially excluded. Thus, Pi's differentiators are its

.

Technical Features

Although Pi's mining method is unique, it is backed by serious technology. Pi Network uses a consensus mechanism called the

. You can think of it as an efficient and eco-friendly "decision meeting" system, rather than Bitcoin's "competition of strength" (proof of work) for ledger rights.

The SCP protocol was originally designed by Stanford professor David Mazières. It achieves consensus through the

. This means each participant (node) in the network reaches agreement based on a group of other nodes they trust, rather than requiring unanimous agreement from all nodes. This method , making it ideal for mobile devices.

In Pi Network, users can play different roles to contribute to the network:

• Pioneer
  : Ordinary users who check in daily on the app to "mine".
• Contributor
  : Enhance network trust by building a "security circle"—a group of 3-5 trusted users, which helps increase mining rate. You can think of this as providing a layer of "trust endorsement" for the blockchain.
• Ambassador
  : Promoters who invite new users to join the network.
• Node
  : Computer users running Pi node software, who validate transactions and run the SCP algorithm—the "backbone" of the network.

Tokenomics

: PI.

: According to Pi Network's whitepaper, the maximum total supply of Pi coins is set at .

: Pi's issuance mechanism is designed to balance scarcity and accessibility. It rewards users for participation via mobile mining, with the mining rate decreasing as the number of network participants increases (similar to Bitcoin's "halving").

The allocation of total supply is:

• Community mining rewards
  : 65%.
• Core team
  : 20%.
• Foundation reserve
  : 10%.
• Liquidity pool
  : 5%.

This allocation is intended to incentivize ongoing community growth and contribution.

: Pi coins are intended for payments for goods and services within the Pi ecosystem, peer-to-peer transfers, and supporting the development and operation of decentralized applications.

: Users can choose to lock up their mined Pi coins for a period to earn a higher mining rate, which also helps stabilize the network and safeguard value.

: Before the mainnet opens in February 2025, Pi coin circulation is restricted and cannot be traded on external exchanges. After the mainnet opens, users who have passed KYC (Know Your Customer) verification can migrate their Pi coins to mainnet wallets and use them within the Pi ecosystem. Currently, about 6.29 billion Pi coins are in circulation, with 4.63 billion locked, leaving approximately 1.66 billion Pi coins actually circulating.

Team, Governance, and Funding

: Pi Network was founded by :

• Dr. Nicolas Kokkalis
  : Technical lead.
• Dr. Chengdiao Fan
  : Product lead.

Additionally, the core team consists of worldwide.

: The team emphasizes its background in distributed systems and social computing. Their goal is to make cryptocurrency more inclusive, benefiting those who lack capital, knowledge, or technology to participate in the traditional crypto revolution.

: Pi Network's whitepaper mentions "governance." While specific details are not fully elaborated in available materials, the project is committed to building a model, advancing development through its large user base and ecosystem.

: Pi Network operates on a "free mining" model, with users not needing to invest in equipment upfront. The specific sources of project startup and development funding are not detailed in public information, but the project relies on broad community participation and contribution.

Roadmap

Pi Network's development roadmap is divided into several key stages—you can think of this as the project's journey from seedling to tree:

• Phase 1: Beta (launched March 2019)

  The project's initial stage, releasing the mobile app, mainly aimed at attracting users and building the community. During this phase, Pi Network ran on a centralized server, accumulating users and collecting feedback.

• Phase 2: Testnet (launched March 2020)

  The project entered the technical testing stage, introducing the Testnet, allowing users to run Pi node software and test the network's decentralization and consensus mechanism. This is like a rehearsal before building the mainnet.

• Phase 3: Mainnet (launched December 2021)

  This stage is divided into two periods:

  • Enclosed Network period
    : The mainnet is live, but external connections are restricted, protected by a "firewall." The main goal is for users to complete KYC (real-name verification) and migrate their Pi coin balances to the actual blockchain. Users can use Pi coins within the Pi app ecosystem, but cannot trade with external blockchains or exchanges.
  • Open Mainnet period
    : According to official announcements, Pi Network officially enters the open mainnet on
    February 20, 2025
    . This means external connections will be fully open, and Pi coins will be able to be listed and traded on cryptocurrency exchanges.

• Future plans

  Pi Network's long-term goal is to develop into a global payment system supported by everyday goods and services. This includes expanding node operations, developing cross-chain capabilities, and partnering with traditional businesses to accept Pi coins as payment.

Common Risk Reminders

Friend, when learning about a project, it's important to recognize not only its strengths but also its potential risks. As an emerging blockchain project, Pi Network has some risk points to note—

:

Technical and Security Risks

• Real-name system and data leakage
  : Pi Network requires users to complete KYC (Know Your Customer) verification, meaning you must submit personal identity information. If the project team does not store and handle this data rigorously, there may be risks of information leakage.
• Technical iteration and stability
  : While the SCP consensus mechanism has advantages, as a large-scale decentralized network, its long-term stability, security, and scalability in practice still need time to be validated. The whitepaper also notes that content may be adjusted based on mainnet data.
• Code transparency
  : Some believe Pi Network is not fully open source, which may limit external audits and community oversight.
• Intellectual property risk
  : If the project does not fully comply with the Stellar protocol's open-source license, it may face legal action.

Economic Risks

• Value uncertainty
  : Although Pi coins have launched on the open mainnet and some exchanges, their
  actual value and liquidity remain to be validated by the market
  . Before widespread use and liquidity are established, its value may fluctuate greatly and has even been considered to have no intrinsic value.
• Early player cash-out risk
  : Pi's mining mechanism gives higher rewards in the early stages. If future market recognition is low, users who accumulated large amounts of Pi coins early may cash out when the market opens, potentially impacting the coin price.
• Pyramid scheme concerns
  : Because Pi Network's promotion relies on invitations and building "security circles" to boost mining speed, this has led to concerns about pyramid schemes or illegal fundraising in some regions. Although the project team has stated it is not such a model, users should remain vigilant.

Compliance and Operational Risks

• Regulatory policy changes
  : Global cryptocurrency regulations are still evolving, especially in regions like China with strict restrictions on virtual currency trading. Policy changes may affect Pi Network's operations and user assets.
• Project delays and execution
  : Blockchain project roadmaps are often delayed due to technical challenges, community feedback, or regulatory factors. Pi Network's long "enclosed" mainnet period has caused community concern.
• Market acceptance
  : The project's success ultimately depends on whether it can build a broad application ecosystem and make Pi coins truly usable. Without enough use cases and business partnerships, its development may be limited.

Verification Checklist

As blockchain analysts, we encourage you to verify and research project information yourself:

• Official website
  : minepi.com
• Whitepaper
  : You can find the original whitepaper (March 2019) and the December 2021 update on token model, mining, and roadmap on the official website.
• Block explorer contract address
  : Pi Network's open mainnet is live; you can find its mainnet block explorer via official channels to verify on-chain activity.
• GitHub activity
  : Check its codebase to understand development progress and community contributions.
• KYC status
  : Follow official updates on KYC (identity verification) progress and requirements.

Project Summary

In summary, Pi Network is a very unique and ambitious blockchain project. Through its innovative "mobile mining" model, it has greatly lowered the barrier to cryptocurrency participation, attracted tens of millions of users, and successfully transitioned to the open mainnet stage. Its vision is to build an inclusive, peer-to-peer digital economy driven by ordinary people.

However, while recognizing its huge user base and convenience, we should also remain objective and cautious. The project's long-term value and success will ultimately depend on whether it can effectively address challenges in technical scalability, security compliance, building a rich application ecosystem, and gaining broad market recognition.