Concerns about the increasing centralization of the Pi Network are growing as the core team holds 82.8 billion Pi Coins.

Pi Network, once praised as a promising decentralized cryptocurrency project, is now facing increasing scrutiny due to centralization, lack of transparency, and growing user dissatisfaction. The core group holds the majority of Pi Coin's supply. Recent data from PiScan has revealed the concerning level of control by the core team of the Pi Network over the total supply of Pi Coin (PI). The data shows that approximately 62.8 billion PI are held in six wallets controlled by the core team. Additionally, another 20 billion PI are distributed across 10,000 unlisted wallets, also linked to the team. In total, these entities control 82.8 billion PI, accounting for 82.8% of the total maximum supply of 100 billion PI. This concentration raises significant concerns about decentralization and the project's long-term viability. Although some degree of centralization is expected to occur in the early stages of blockchain development, such a large degree of supply concentration could lead to market manipulation, loss of trust, and reduced applicability of the cryptocurrency community in general. Buttons and restrictive authentication processes exacerbate centralized issues In addition to distributing the supply, the structure design of Pi Network also does not seem to be decentralized. Currently, the network only operates with 43 nodes and three verifiers worldwide. This is insignificant compared to other well-established Layer 1 blockchains: Bitcoin (BTC): Over 21,000 nodes Ethereum (ETH): Over 6,600 nodes Solana (SOL): About 4,800 nodes

With such limited number of validators, the verification and transaction management of Pi Network is highly centralized, making the network susceptible to control by a few entities. This is contrary to the decentralized nature that blockchain technology is built upon. Issues of transparency: Closed source and limited chain analysis Another major concern surrounding Pi Network is its lack of transparency. According to PiScan's statement, analyzing the source code and on-chain data of Pi Network remains a challenge due to its incomplete transparency. This alerts potential investors and developers who rely on open-source blockchain data to verify security, authenticate transactions, and ensure a fair network operation. AI-based KYC raises concerns about privacy Adding another layer of complexity, the 2025 security policy update of Pi Network has sparked controversy over the use of ChatGPT to verify your customer (KYC). The update clarifies: We use ChatGPT, as a trusted AI partner, to automatically verify identity and enhance security measures. By using our KYC service, users agree to use ChatGPT and other AI providers that may be deployed in the future, as part of our KYC process. This decision raises concerns about how user data is collected, stored, and shared. With AI-controlled identity verification, users wonder who has access to their personal data and whether their privacy rights are fully protected or not. User dissatisfaction is increasing and interest is declining In addition to these technical and management concerns, Pi Network has faced increasing criticism from the user community. Some key issues include: Technical difficulties in the process of moving the main networkThe extended lock time prevents users from accessing their tokensUsers are trying to sell their accounts because of disappointment These challenges have led to a sharp decline in the popularity of Pi Network. According to Google Trends, the search interest for "Pi Network" has decreased significantly since the mainnet launch on February 20, 2025. On the launch day, the search interest peaked at 100, but then dropped to only 12, indicating a significant loss of public interest. Conclusion: What will be the future of Pi Network? High level of concentration, lack of transparency, and increasing user dissatisfaction pose serious challenges to the future of Pi Network. Although the project was once promised to be an accessible cryptocurrency, prioritizing mobile devices, recent developments have raised doubts about its decentralization and long-term viability. For Pi Network to regain trust and establish itself as a legitimate player in the cryptocurrency space, it must address issues of transparency, decentralization of network governance, and improve user accessibility. Without these key improvements, the network risks losing the remaining support of the community and becoming irrelevant.