What is Pi Network?

Pi Network is a decentralized cryptocurrency project based on mobile mining, aiming to popularize blockchain technology through an easy-entry mining model, such as smartphone mining. Users can participate in mining simply by using a mobile app, without the need for professional hardware or high energy consumption. This reduces the dependence of traditional mining on high-performance equipment and energy.
Currently, Pi Network has over 60 million users, with more than 19 million verified, and over 10 million have migrated to its mainnet.

Gate.io Now Supports $PI Spot Trading

Why is Pi Network Needed?

Pi Network aims to solve the high barriers and resource waste problems in traditional cryptocurrencies (such as Bitcoin). Traditional mining relies on high-energy Proof-of-Work (PoW) mechanisms, making it difficult for ordinary users to participate, and the resources are concentrated in a few institutions. Pi Network, through its mobile “zero-barrier mining” model (daily tapping of a button), allows global smartphone users to participate with minimal effort, reducing the risk of mining power centralization. It uses the Stellar Consensus Protocol (SCP) instead of competitive computing power, which consumes very low energy and supports social trust verification. The network also uses a community-based viral growth mechanism (such as an invite system) to quickly accumulate users. Its goal is to build an inclusive payment network, especially for emerging markets, providing low-cost cross-border transactions and financial inclusion services. The mobile-first strategy and gradual decentralization design provide an experimental foundation for large-scale blockchain application adoption, balancing technological feasibility with community-driven economic value.

SCP Consensus

Unlike traditional cryptocurrencies that rely on energy-intensive Proof-of-Work systems, Pi Network employs a model that allows users to mine with low resource consumption. This is achieved through a lightweight and efficient consensus algorithm called the Stellar Consensus Protocol (SCP).
SCP is a consensus algorithm based on the Federated Byzantine Agreement (FBA) model. Unlike traditional Proof-of-Work (PoW), SCP allows each node in the network to independently choose a set of trusted nodes (called trust slices) to reach consensus. As long as enough nodes in a node’s trust slice agree, the entire network can achieve consensus, ensuring strong fault tolerance against some malicious or faulty nodes.
There are four key roles in the network:

• Pioneers: Users of the Pi mobile app who confirm they are not “robots” daily to mine.
• Contributors: Pi mobile app users who contribute by providing a list of trusted pioneers they know.
• Ambassadors: Pi mobile app users who are responsible for bringing other users into the Pi network.
• Nodes: Pioneer users, contributors, and ambassadors who run the Pi node software on their desktop or laptop, which operates the core SCP algorithm and takes into account the trust graph provided by contributors.

SCP coordinates the consensus of the distributed node system, which means the same core algorithm is used not only to record new transactions in new blocks every few seconds but also for periodic more complex calculations, such as running once a week. Pi Network uses SCP daily to calculate the distribution of new Pi for all active miners (pioneers, contributors, ambassadors, nodes) each day. In other words, Pi mining rewards are only calculated once per day, rather than on each block in the blockchain.

This also brings optimization in transaction fees. The fees in the Pi Network are optional. Each block has a limit to the number of transactions it can hold. When there are no backlogged transactions, they are often free. If there are more transactions, nodes will prioritize them based on fees. The fees are distributed proportionally among the active miners at the end of each day.

Pi Network Roadmap

Pi Network began in 2019, and its development has gone through several stages:
Stage 1: Beta Testing (2019 - 2021)

• Pi Network launched mobile mining globally with an invite-only system and began building a user community.
• Designed and tested the Pi coin distribution model to ensure fairness and sustainability.

Stage 2: Testnet (2021 - 2023)

• Pi Network began running a testnet to simulate real blockchain environments.
• Pi coins were not yet tradeable on external exchanges to ensure network security.
• The app ecosystem began to grow, allowing users to trade and redeem Pi coins for some services.

Stage 3: Mainnet (Starting 2024)

• Pi Network plans to launch a fully decentralized mainnet, allowing Pi coins to be traded externally.
• The DApp ecosystem will expand, enabling Pi coins to be used in more sectors such as payments, financial services, online shopping, etc.
• Ensuring Pi coin liquidity and increasing its market value and utility.

Stage 4: Network Listing (Feb 20, 2025)

• Pi will be listed on cryptocurrency exchanges, allowing external trading of PI coins.

Pi Network Tokenomics

Token Distribution

According to Pi’s official whitepaper, the supply of Pi coins is divided into two stages:
Stage 1: Pre-Mainnet

• Mining rates decrease as the user base grows, with no clear limit on total supply until the mainnet goes live.

Stage 2: Post-Mainnet

• The maximum supply is capped at 100 billion Pi coins, with 80% allocated to the community and 20% to the Pi core team to ensure long-term development and rewards for the community and ecosystem.
  

Supply Model

Pi Network’s economic model balances the scarcity and popularity of digital currencies. In its design, the total supply of Pi is dynamic and influenced by the number of network participants and the extent of user mining. The Pi supply is divided into three main parts:

• M (Mining Rewards): Mining rewards are based on the user’s level of participation. Early adopters receive higher rewards, and as the network grows, the rewards decrease.
• R (Referral Rewards): To encourage growth, Pi Network has a referral reward system where users can earn extra rewards by inviting others to join.
• D (Developer Rewards): Developer rewards will be gradually released as the network grows to provide ongoing funding for Pi’s development.

Pi Network incentivizes participation through a mining reward mechanism. Each user can mine Pi coins by tapping a button daily. The reward amount decreases as the number of users grows. Additionally, Pi introduces a referral system, encouraging existing users to invite new users to expand the network.