Pi Network — from a niche project to a mainstream cryptocurrency

Introduction to the Pi Ecosystem

In the world of cryptocurrencies, where complex technology and high entry barriers prevail, Pi Network stands out as an innovative project that redefines the concept of accessibility to digital assets. Founded by Stanford University doctors Nicolas Kokkalis and Chengdiao Fan, the Pi network aims to make cryptocurrency mining accessible to everyone with a smartphone, regardless of technical knowledge or financial means.

Unlike traditional crypto systems that require expensive hardware and significant energy consumption, Pi is built on principles of simplicity and environmental responsibility. This is achieved through the Stellar consensus protocol, which replaces energy-intensive Proof-of-Work mechanisms with approaches based on social trust and network verification.

Project Genesis: Inspiration and Implementation

The journey of Pi Network began in 2019 when two researchers from Stanford recognized a critical gap in the crypto landscape: billions of people owned smartphones but lacked the opportunity to participate in the decentralized finance revolution due to technical and financial barriers.

Dr. Nicolas Kokkalis, an expert in distributed systems and human-computer interaction, brought technical expertise and insight into designing systems that do not require specialized training to use. His research focused on the question: how to make cryptocurrency technology transparent and accessible to the average person?

Dr. Chengdiao Fan, an anthropologist by profession, added a human dimension to the project. Her experience in social computing and understanding human behavior helped develop mechanisms that combine technology with natural social structures familiar and acceptable to people.

Together, they created not just a new token but an entire ecosystem focused on inclusivity and sustainability.

Pi Architecture: How Technology Serves Accessibility

Pi Network operates on several key architectural decisions:

Stellar Consensus Protocol as an Alternative

Unlike Bitcoin, which requires solving complex mathematical puzzles via millions of devices (Proof-of-Work), Pi uses the Stellar consensus protocol. This approach:

• Significantly reduces energy consumption
• Ensures scalability without generating electronic waste
• Verifies transactions through social trust graphs rather than brute-force calculations
• Enables mining on mobile devices without overheating or draining batteries

Role and Participation Structure

The Pi ecosystem is organized around four clearly defined participant types:

Pioneers — the main mass of users who open the mobile app daily and confirm their presence. This is the simplest level of participation and is accessible to everyone.

Security Circle Participants — users who go further by creating “security circles” (Security Circles). They select 3-5 people they personally know and verify their authenticity. This creates a system of mutual verification similar to social networks but aimed at security.

Project Ambassadors — active community members who recruit new users and promote Pi. They earn rewards for expanding the network.

Node Operators — the most technically prepared participants who run verification software on their computers to support the network infrastructure.

This structure allows each person to find their level of involvement — from passive to active.

Trust Circle Concept as a Replacement for Blockchain

Instead of securing through cryptographic puzzles, Pi builds trust via social bonds. When you create a trust circle, you say: “I know these people personally, I trust them, and they should be recognized as legitimate participants.”

This creates a decentralized network where security stems from human relationships rather than computational power. It’s a revolutionary approach that recognizes a simple truth: people are better at detecting fraud in their environment than algorithms.

Pi Tokenomics: How Resources Are Distributed

The project set a maximum supply of 100 billion Pi tokens. The distribution follows an 80/20 principle in favor of the community:

Fund Distribution (80 billion tokens)

Mining rewards occupy the largest share — 65 billion tokens. These funds are aimed at rewarding active participants. During the test phase, approximately 30 billion tokens were mined, but KYC verification requirements (Know Your Customer) may reduce this amount to 10-20 billion, ensuring only real people receive rewards.

Community development — 10 billion tokens are allocated for funding events, developer grants, and other initiatives that promote ecosystem growth.

Liquidity reserve — 5 billion tokens are set aside as a liquidity buffer to facilitate trading and asset accessibility.

Team Share (20 billion tokens)

Founders and core team received 20 billion tokens as compensation for development and network maintenance. These tokens are gradually unlocked based on project progress, ensuring long-term motivation for the team.

This conservative distribution demonstrates a commitment to the community: over three-quarters of all assets are reserved for users, not investors or founders.

Value Evolution: From Hypotheses to Reality

When Pi first launched, the token’s value was purely hypothetical. Many skeptics argued that without an active trading market, Pi would have no real value. However, this argument overlooked a fundamental truth: value comes from utility and demand.

With Pi’s transition to an open network and listing on crypto exchanges, the situation changed dramatically. Currently, the PI token trades at $0.20 with a daily volatility of +0.61%. The circulating market cap is $1.71 billion with an active supply of 8.37 billion tokens.

It’s worth noting that higher prices were observed earlier — a historical maximum of $3.00 and a minimum of $0.05. This dynamic reflects natural market fluctuations typical of young crypto projects still discovering their fair value.

Mining Mechanics: Demystifying the Process

Mining on Pi occurs via a simple mobile app. Unlike traditional mining, which requires ASIC miners and hundreds of megawatts of electricity, Pi’s process involves:

Daily login — users open the app once a day and press a button. That’s all needed to earn a basic reward.

Expanding trust circles — users earn additional rewards by adding verified contacts to their security circles. The more people you verify, the more rewards you receive.

Running nodes — experienced users can run a (node) on their computers, which yields higher rewards but requires technical skills.

Reward structure encourages progressive participation: basic involvement is accessible to all, but increased activity yields greater rewards. This promotes organic growth and engagement across different user groups.

Mainnet Launch: A Turning Point

In December 2021, Pi transitioned from its testnet to the closed mainnet (mainnet). This was a significant step, demonstrating that the project is no longer just a concept but a functioning blockchain system.

Initially, the mainnet remained “closed” — users could not freely transfer tokens outside the Pi ecosystem. Over time, the network began moving toward an “open” phase, which allows:

• External connections with other blockchains
• Trading on cryptocurrency exchanges
• Transferring Pi to third parties and receiving payments in Pi

This stage marks Pi’s transformation from a closed ecosystem to an active participant in the global crypto market.

KYC Verification: Protecting Against Fake Accounts

Pi implemented a “Know Your Customer” (KYC) process — a system requiring users to verify their identity before transferring tokens to exchanges. This solution aimed to:

Prevent fraud — making it impossible for one person to create thousands of fake accounts to accumulate unlimited rewards.

Ensure regulatory compliance — meeting international anti-money laundering and AML requirements.

While some criticize KYC as privacy-invasive, in the context of preventing abuse, it’s a reasonable compromise that preserves the system’s integrity.

Using Pi: From Theory to Practice

At the current stage, Pi can be used for:

• Trading on exchanges — exchanging for other cryptocurrencies or fiat money
• Payments within the ecosystem — some apps and services in Pi’s network already accept tokens as payment
• Transfers between users — direct payments to other network participants
• Future decentralized applications — developers creating DApps that build utility on Pi

Real liquidity comes from trading on exchanges. Users who pass KYC and migrate their tokens to the mainnet can withdraw and trade them for other assets.

Token Withdrawal Process: Step-by-Step

For those wishing to sell their accumulated Pi tokens:

1. Complete KYC — download the Pi mobile app, go through verification (ID, photo), and wait for approval.

2. Migrate tokens — transfer tokens from your Pi Network Wallet to the open mainnet. This is a one-time operation.

3. Choose a platform — select a cryptocurrency exchange with a PI/USDT trading pair or similar.

4. Deposit to exchange — copy the deposit address from the exchange and send your tokens from Pi Wallet. Wait for network confirmation.

5. Trade — once tokens appear on the exchange, place a sell order. You can use a market order for immediate sale at current price or a limit order to wait for a specific price.

6. Withdraw funds — after selling, you can leave funds on the exchange, convert to other assets, or withdraw to your bank account (by checking exchange withdrawal conditions).

Legitimacy Questions: Separating Facts from Speculation

Many newcomers ask: “Isn’t this just another crypto scam?” Fair concern. However, objective facts support Pi’s legitimacy:

In favor of legitimacy:

• Founders have verified PhDs from prestigious universities, publicly accessible.
• The project follows a multi-year development plan without promises of instant wealth.
• It does not require initial investments, unlike Ponzi schemes.
• Successfully launched mainnet and listed on regulated exchanges.
• Continually develops technically with real updates and improvements.

Valid critical points:

• Long development timeline — complex blockchain systems indeed take years.
• Long period without established market value — this was a real issue before exchange listings, but active trading is now ongoing.
• Mobile mining mechanics — initially questionable, but Stellar SCP provides a solid technical foundation.

The transition to open mainnet and exchange listings has significantly strengthened trust in the project.

Future Outlook: Ambitions Beyond Hype

Pi developers have not hidden behind technical miracles or empty promises. Their vision includes:

Expanding the ecosystem of applications — hosting regular hackathons to attract developers creating DApps on Pi. Plans include e-commerce, gaming, financial services.

Global payment system — aiming to position Pi as a daily-use currency backed by real goods and services.

Cross-chain capabilities — integrating with other blockchains to expand utility.

Strategic partnerships — negotiating with traditional companies to accept Pi as a payment method.

These plans are ambitious but not unprecedented in the crypto space. The key remains their actual implementation.

Frequently Asked Questions

When did Pi Network start?
The mobile app launched in 2019. The closed mainnet — December 2021. The open phase is gradually unfolding over recent months.

How can I start mining?
Download the Pi Network app, register, and press the mining button once a day. That’s it.

What is the current price of PI?
As of the latest update — $0.20 with a daily change of +0.61%. Market cap is $1.71 billion.

Can I already trade Pi?
Yes, active trading occurs on several crypto exchanges. KYC-verified users can withdraw and trade their tokens.

What distinguishes Pi from Bitcoin?
Pi uses Stellar SCP instead of Proof-of-Work, consumes millions of times less energy, mines on smartphones, and security is based on social trust rather than cryptographic puzzles.

Is Pi Network a scam?
Objective evidence indicates it is not. The project has a verified team, multi-year development, a functioning mainnet, and active trading on exchanges. Like any crypto asset, it involves risk but is not a classic scam.

Conclusion: Pi Network as a Bridge to Mass Adoption

Pi Network embodies an alternative vision of what a crypto revolution could be — not for techies and the wealthy, but for ordinary people with simple smartphones. The project demonstrates that accessibility and decentralization are not mutually exclusive goals.

With the transition to the open mainnet and real trading on exchanges, Pi has moved beyond the experimental phase. Whether it will achieve its ambitious goal of becoming a global payment currency remains to be seen. However, today it serves as an example of how to rethink technology for the benefit of the many, not the few.

For newcomers to the crypto world, Pi offers a risk-free way to learn about blockchain technology through practical participation. For investors — it’s a young digital currency with an active ecosystem and real demand. For developers — an open platform for creating decentralized services.

Ultimately, the future of Pi depends not on the promises of its founders but on how many people and companies choose to use it as a real currency rather than just a speculative asset.