Pi Network’s Mainnet Launch and Tokenomics! Here is What You Need to Know

2025-02-21
Pi Network’s Mainnet Launch and Tokenomics! Here is What You Need to Know

Pi Network has been one of the most talked-about crypto projects in recent years, attracting millions of users despite not having a fully launched mainnet. After years of speculation, the project is now preparing for its open network launch, and anticipation is growing. 

With 100 billion tokens in total supply, users are eager to see how Pi Coin will be valued once trading becomes accessible.

While excitement around the launch is high, Pi Network has faced multiple controversies, including allegations of data leaks and accusations of operating as a pyramid scheme

These factors have led to skepticism from parts of the crypto community, but its massive user base remains loyal. As the launch approaches, many are wondering whether Pi will live up to the hype or struggle to gain legitimacy.

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Pi Network’s Tokenomics and Supply Distribution

Pi Network has outlined a 100 billion total token supply, which is divided into several key allocations. A significant portion is dedicated to user rewards, ecosystem development, and the core team.

The breakdown of Pi’s supply includes:

  • 65% allocated to mining rewards, distributed to users who mine Pi through the mobile app, participate in referrals and operate nodes.
  • 10% reserved for ecosystem growth, funding decentralized applications and projects that will contribute to the network’s expansion.
  • 5% set aside for liquidity, ensuring smooth transactions within the Pi economy.
  • 20% allocated to the core team, with a vesting schedule to align incentives with the long-term development of the network.

Despite the large total supplyonly a small portion of Pi is currently unlocked. As of late 2024, approximately 562 million Pi tokens are circulating, with many users opting to lock their tokens for extended periods

Some have chosen lock-up durations of up to three years, a decision that could impact price stability once the mainnet goes live.

The question of Pi’s initial market value has been widely debated. Some estimates suggest a starting price of $30 to $50, while others believe it could be significantly lower. 

secondary market for Pi IOUs has existed for some time, trading at prices as high as $64 per token, but these figures may not reflect its actual value once open trading begins.

Read more: Pi Network (PI) Price Prediction for 2025-2030

Data Leak Allegations and Security Concerns

Pi Network has not been free from controversy. One of the biggest concerns arose in May 2021 when reports surfaced about a data leak affecting thousands of Vietnamese users

Source: Twitter (X)

Allegedly, 17 gigabytes of personal data were compromised, including identity card details, phone numbers, and addresses.

The individual responsible for the leak claimed that the information originated from Pi Network’s KYC system, sparking security concerns. 

However, Pi Network denied the allegations, stating that it does not collect such data directly. The project pointed to its third-party KYC provider, Yoti, which also denied any involvement in the incident.

An internal investigation by Pi Network and Yoti found no evidence of a security breach, but the allegations left a lasting impact on the project’s reputation. 

While there has been no confirmed proof that Pi Network was responsible for the leak, concerns about user data security remain

With millions of users worldwide participating in Pi’s ecosystem, ensuring privacy and security will be crucial as the network transitions to full functionality.

Pyramid Scheme Accusations and Regulatory Scrutiny

Pi Network has also been accused of operating as a pyramid scheme, particularly in China, where its referral-based mining system has come under heavy scrutiny. 

The platform allows users to increase their mining rate by inviting others, a structure that some regulators believe mirrors multi-level marketing (MLM) models.

In July 2023, authorities in Hunan Province labeled Pi Network as a scam, warning that its reliance on referrals and promise of future rewards raised concerns about sustainability. 

The project has also been criticized by some industry analysts who believe its structure benefits early adopters at the expense of later participants.

Despite these allegations, Pi Network maintains that its model is not a pyramid scheme, arguing that mining rewards are designed to incentivize network security and participation rather than create profit from new entrants. 

To address regulatory concerns, Pi Network has implemented trading restrictions in certain regions, including parts of China, where users face limitations on how they can exchange their Pi tokens.

While Pi Network remains a highly followed project, its legal standing is still uncertain in some jurisdictions. 

The platform’s success will depend on how it navigates regulatory challenges and whether it can establish itself as a legitimate blockchain network rather than a speculative rewards system.

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Conclusion

Pi Network’s upcoming mainnet launch is one of the most anticipated events in the crypto space, with millions of users waiting to see how the project evolves. 

The 100 billion total token supply, combined with widespread user adoption, has fueled excitement, but concerns remain about security, legitimacy, and pricing stability.

The project has built an enormous user base, but whether it can sustain long-term adoption depends on its ability to prove itself as a legitimate and functional blockchain ecosystem.

Frequently Asked Questions

What is the total supply of Pi Network’s tokens?
Pi Network has a total supply of 100 billion Pi tokens, with allocations for mining rewards, ecosystem growth, liquidity, and the core team.

Has Pi Network been accused of a data leak?
Yes, in 2021, reports surfaced about a data leak in Vietnam, but Pi Network and its KYC provider denied involvement. No confirmed breach was found.

Why has the Pi Network been accused of being a pyramid scheme?
Pi Network’s referral-based mining system has raised concerns about multi-level marketing structures, particularly in China, where regulators have labeled it a potential scam.

Investor Caution 

While the crypto hype has been exciting, remember that the crypto space can be volatile. Always conduct your research, assess your risk tolerance, and consider the long-term potential of any investment.

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Disclaimer: The views expressed belong exclusively to the author and do not reflect the views of this platform. This platform and its affiliates disclaim any responsibility for the accuracy or suitability of the information provided. It is for informational purposes only and not intended as financial or investment advice.

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