The Pi Network core team controls 82.8 billion Pi out of a total supply of 100 billion, according to PiScan data. This significant centralization has raised concerns about decentralization, as such control is handed to the core team and has a significant impact on the network's future. While projects in the early stages typically hold a significant amount of tokens, the amount of Pi Network is considered particularly high. Currently, the team holds 62.8 billion Pi in six wallets, and another 20 billion Pi are held in around 10,000 illiquid wallets associated with the team. This concentration raises questions about the actual decentralization of the network.

In addition to token distribution, Pi Network operates with only 43 nodes and three validators worldwide. Compared to other major Layer 1 networks such as Bitcoin with 21,000 nodes, Ethereum with 6,600 nodes, and Solana with 4,800 nodes, the Pi Network structure looks very centralized. A small number of nodes means that control remains in the hands of a few, making the network more vulnerable to manipulation. PiScan, a platform for blockchain analysis, also points to the complexity of analyzing Pi Network's source code and on-chain data due to a lack of transparency, increasing doubts about the long-term viability of the project.
The recent privacy update of the Pi Network has caused another controversy. The project revealed the use of ChatGPT to automate the customer identification process (KYC). While identity verification using AI is becoming more common, this action was not announced in advance, leaving many users wondering how their data is being handled. According to the updated policy, Pi Network users must consent to the processing of their identification data by ChatGPT and potentially other AI providers in the future.
User dissatisfaction and declining interest are also a major issue for the Pi network. Many users have encountered difficulties transitioning to the mainnet and increased block times. Some are forced to sell their accounts due to restricted access to their tokens. There has been much criticism that the project lacks the transparency of a real blockchain, with transactions being removed from the public blockchain. One user called it the worst failure of the project, unnecessary and without real value. These issues have negatively impacted the popularity of the Pi network, leading to a significant decline in interest in mining.
With fears about centralization, lack of transparency, and growing user dissatisfaction, PI Network faces serious challenges ahead. The ability to solve these problems and restore community trust still remains uncertain.