1. Pi Network project background and mainnet milestones

Pi Network was founded in 2019 with the core goal of achieving widespread cryptocurrency adoption through low-threshold mobile mining. According to the latest mainnet data, the total supply of PI is 9.821 billion, with a maximum supply of 100 billion. Currently, the circulating supply of Pi is 6.384 billion, including 1.603 billion in unlocked circulating supply. The total migration mining reward for Pi Network is 6.384 billion, with 4.781 billion of mining rewards in a locked state. In addition, the current total supply is 9.821 billion, with approximately 1.603 billion in unlocked mining rewards.

Source:Pi Blockexplorer

2. Pi Network mainnet and market dynamics

On February 23, 2025, Pi Network officially launched the mainnet and started spot and perpetual contract trading on Gate.io. After the mainnet launch, the price of PI experienced significant fluctuations, with a 24-hour increase of +67.16%, reaching a high of 1.77 and a low of 0.68. Currently, the market price of PI is 1.19318. Through continuous mainnet development, Pi Network strives to improve network stability, enhance blockchain application scenarios, and further promote the popularity of Pi Coin in the market. With more miner rewards unlocked and an increasing number of community users, the market prospects and application potential of Pi Network are still widely optimistic.

Source:Gate.io spot trading

3. KYC mechanism: Pi Network technology architecture and compliance logic

The KYC system of Pi Network combines AI automated verification with community crowdsourcing review to ensure the authenticity of user identities and support compliance requirements.

Through the design of the following aspects, Pi Network ensures the security and fairness of its KYC mechanism:

1. Identity Authenticity: KYC verification is conducted through multiple means, including document recognition, live detection, and cross-validation of social graphs, to effectively screen and exclude robot accounts. At the same time, all users who pass KYC will migrate their balances to the PI mainnet, and only accounts verified by KYC can transfer balances.

2. Anti-Money Laundering (AML) Compliance: In order to comply with the FATF (Financial Action Task Force) ‘Travel Rule,’ Pi Network will compare the KYC information associated with on-chain transactions and wallet addresses to ensure that all cross-chain transactions and wallet transfers comply with regulatory requirements. In addition, after migrating to the mainnet, all KYC-verified PI balances will be recorded and circulated in legitimate trading activities.

3. Token distribution fairness: Tokens from accounts that have not passed KYC verification will not be able to be transferred to the mainnet, and these unverified PIs will be reallocated to the miner reward pool. This mechanism ensures that the token distribution in the network is fair and transparent, and only Pioneers who meet compliance requirements are eligible to obtain PI tokens.

Technological highlights

• Dynamic verification threshold: The KYC system adjusts the strictness of the audit based on the account’s activity (such as the number of security circle nodes). This design ensures higher verification standards for new users, while providing appropriate flexibility for long-term active users.

• Zero-Knowledge Proof (ZKP): In order to protect user privacy data, PI adopts Zero-Knowledge Proof (ZKP) technology, encrypting all sensitive data and only opening necessary fields to regulatory authorities. This technology ensures user privacy while also meeting compliance requirements, ensuring the security and transparency of the entire KYC process.

Through these technologies and compliance measures, Pi Network has not only strengthened the platform’s security but also ensured that the token distribution mechanism complies with laws and regulations, laying a solid foundation for the smooth transition of the mainnet and future ecosystem development.

Source:Pi Cryptocurrency White Paper | Pi Network

4. Global Regulatory Strategy: Pi Network Regional Compliance Framework

Pi Network has developed differentiated compliance solutions for different jurisdictions:

5. Pi Network Market Performance and Regulatory Risk Hedging

After the mainnet launch, PI prices experienced drastic fluctuations (see table below), reflecting the market’s game of uncertainty towards compliance.

To stabilize the token price, PI has introduced a token lock-up mining accelerator: users can choose a lock-up period of 3 months to 3 years and receive a maximum of 200% mining power bonus. According to the mainnet data, currently 4.78 billion PI is in a locked state, accounting for 75.8% of the total circulation.

Source:Pi Network - AiCoin

Summary

Since its inception in 2019, Pi Network has been committed to driving the adoption of cryptocurrencies through innovative mobile mining models. However, the launch of the mainnet brought about wild fluctuations in market prices, reflecting the market’s concerns about its compliance. In order to cope with this uncertainty, Pi Network has introduced a token lock-up mining accelerator, where users can choose different lock-up periods to obtain a higher mining hashrate bonus, which in turn helps stabilize the coin price.

In terms of global regulation, Pi Network has developed differentiated response strategies for compliance requirements in different regions. In order to avoid being classified as a security in the United States, PI has delayed token circulation through the mainnet token locking mechanism; in the European Union, PI has established an entity in Ireland and adopted sharding storage technology to meet the data privacy requirements of GDPR; while in Asia, PI has partnered with Gate.io to address capital controls and exchange licensing issues through regional isolation measures.

In addition, the KYC mechanism of PI combines AI automated verification and community crowd auditing, ensuring the authenticity of user identities and complying with anti-money laundering (AML) requirements, thereby ensuring the fairness and transparency of token distribution. This series of compliance measures strengthens the legitimacy of the Pi Network in the global market, supporting its sustainable development in various regions.

Through these global regulatory response strategies and compliance innovations, Pi Network has demonstrated its determination to promote cryptocurrency adoption while ensuring compliance and platform security, laying a solid foundation for future ecosystem development.