What Is Pi Network and Is it a Legit Project?

Pi Network is a unique cryptocurrency project that aims to make digital currency mining accessible to everyone. The project was created by a team of Stanford graduates to provide a decentralized, user-friendly digital currency for everyday transactions.

In this guide, we will cover what Pi Network is, how it works, and how to mine Pi coins. We will also discuss whether Pi Network is legit or a scam and its future potential.

What Is Pi Network?

Pi Network is a cryptocurrency project that lets you mine Pi coins directly from your mobile device without using significant energy. It launched on March 14, 2019, and was created by Stanford graduates Dr. Nicolas Kokkalis and Dr. Chengdiao Fan. It lets you mine Pi using a user-friendly mobile app without draining your battery.

Pi Network uses a unique mining mechanism called Stellar Consensus Protocol (SCP) instead of energy-intensive Proof-of-Work (PoW) algorithms. It allows you to mine Pi by contributing to network security through a trust-based system. You form “Security Circles” by adding trusted members, helping to build a global trust graph. This system secures the ledger without draining your device’s resources.

Pi Network’s Philosophy: Building a Community

Pi Network’s philosophy centers on establishing a decentralized and open digital currency driven by its community. The network values accessibility, as any smartphone owner can mine Pi without the need for costly hardware or high energy consumption. 

The Pi Network has become one of the biggest crypto communities, with more than 60 million active users. These users, referred to as Pioneers, contribute actively to the network by mining Pi, validating transactions, and growing the network by inviting members they trust. The Security Circle mechanism is also instrumental in ensuring a trustworthy network since every user verifies others they trust, and thus a decentralized web of trust is formed. You can check out the Pi network whitepaper for more details.

How Does Pi Network Work?

Pi Network works as a decentralized cryptocurrency that allows mining through mobile devices without consuming significant energy. It uses the Stellar Consensus Protocol (SCP) instead of traditional Proof-of-Work (PoW).

The platform uses SCP, which relies on a Federated Byzantine Agreement (FBA) model. Transactions are verified by distributed nodes without requiring massive computational power. The system ensures secure, fast, and scalable transactions while preventing fraud.

The Mining Mechanism

Pi mining does not involve solving complex mathematical problems like Bitcoin. Instead, users contribute to network security by verifying trusted members through Security Circles. Each participant adds up to five trusted individuals, forming a trust-based security system. This decentralized approach ensures transaction validation without centralized control.

Mining Pi requires opening the Pi Network app daily and tapping the mining button. The system does not run in the background or drain battery life. Mining rates decrease over time based on network growth, with a halving mechanism to control coin supply. The initial base rate was 3.1415926 Pi/hour, which has been reduced multiple times as more users join.

Pi Network Roles

Pi Network has four key roles that contribute to its security, decentralization, and growth. Each role plays a specific function in maintaining the network and increasing user engagement.

1. Pioneer: Pi Network allows Pioneers to mine Pi by simply opening the app and tapping the mining button every 24 hours. This role ensures active participation and helps expand the network. Pioneers do not need to keep their app open or use device resources while mining.
2. Contributor: Pi Network enables Contributors to improve security by creating Security Circles. After mining for three days, a user can add trusted individuals to their Security Circle. These circles form a decentralized trust graph that enhances the security of Pi transactions. Each added member increases the mining rate, with a maximum boost of 100% for five members.
3. Ambassador: Pi Network encourages Ambassadors to grow the network by inviting new users. Each invited person who actively mines Pi becomes part of the Ambassador’s Referral Team. The mining rate increases by 25% for every active team member mining at the same time. There is no limit to the number of people an Ambassador can invite.
4. Node: Pi Network relies on Nodes to validate transactions and maintain the blockchain. Users who run the Pi Node software on their computers contribute to the network’s decentralization. Running a Node requires a stable internet connection and a reliable computer.

Benefits Of Using Pi Network

• Accessibility: You can mine Pi coins using a smartphone without the need for expensive hardware or technical expertise, making cryptocurrency mining available to a broader audience.
• Energy Efficiency: Pi Network employs the Stellar Consensus Protocol, allowing mining with minimal energy consumption, which is more environmentally friendly compared to traditional Proof-of-Work systems.
• Strong Community Engagement: With over 110 million downloads, Pi Network has built a large and active user base, fostering a robust community that supports the network’s growth and development.

Challenges And Risks To Consider

• Delayed Mainnet Launch: Despite initial plans, Pi Network’s Open Mainnet launch has experienced delays, leading to uncertainty about when users can trade Pi coins on external exchanges.
• Inflation Concerns: The circulating supply of Pi coins has doubled within a year, leading to concerns that such inflation could undermine the token’s long-term value.
• Pyramid Scheme Allegations: The platform’s referral-based system, which rewards users for recruiting others, has led to comparisons with pyramid schemes.

What Is Pi Coin?

Pi Coin is the native cryptocurrency of Pi Network, a blockchain project that allows users to mine digital currency on their smartphones. Pi Coin has no fixed market value since it remains in an enclosed mainnet, preventing external trading. 

The total supply is capped at 100 billion coins, with 80% allocated to users and 20% to the core team. Pi Coin is designed for peer-to-peer transactions, decentralized applications, and online commerce.

Pi Network’s mining rate has undergone several halvings as the network has grown. Initially, the mining rate halved when the number of engaged Pioneers reached milestones such as 1,000, 10,000, 100,000, 1 million, and 10 million users. This pattern was supposed to keep going until the network hit 1 billion users, at which point the mining rate would reach zero – no more new coins from mining.

Here’s where things shifted. Up until March 1, 2022, that 10x growth halving rule was in play. But once the network entered the “Enclosed Mainnet” phase in December 2021 (a step toward the full launch), the team tweaked the system. They didn’t stick to the strict “every 10x users” rule anymore. Instead, starting March 14, 2022, they rolled out a new “dynamic base mining rate”.

This change ensures that Pioneer mining rewards align with the total supply limit of 65 billion Pi allocated for mining rewards. Generally, the mining rate declines month over month due to the supply limit, the growing network size, and Pioneer mining activity.

Tokenomics

Pi Coin’s tokenomics are designed to promote accessibility, security, and the development of a robust ecosystem. So, how many Pi coins are there? The total maximum supply of Pi is capped at 100 billion tokens, allocated as below:

• Community Supply (80%): 80 billion Pi tokens are designated for the community. This portion is further divided into:
  • Mining Rewards (65%): 65 billion Pi tokens are allocated for past and future mining activities by Pioneers.
  • Ecosystem Building (10%): 10 billion Pi tokens are reserved to support community organization and ecosystem development, managed by a non-profit foundation.
  • Liquidity Pool (5%): 5 billion Pi tokens are set aside to provide liquidity for Pioneers and developers within the Pi ecosystem.
• Core Team (20%): 20 billion Pi tokens are allocated to the Pi Core Team for their contributions and ongoing development efforts.

Methods to Earn Pi

Here are the main ways to earn Pi:

• Daily Mining Sessions: Pi Network lets users mine coins by tapping a lightning bolt icon in the app. Each mining session lasts 24 hours, requiring users to log in and restart mining daily. Consistency helps maintain a steady Pi income.
• Building a Security Circle: Pi Network rewards users who add trusted members to their Security Circle. Each verified member boosts the mining rate by 20%, with a maximum of five members providing a 100% increase. This system enhances network security while increasing mining rewards.
• Inviting New Members: Pi Network provides additional earnings through a referral system. Users receive a 25% bonus of the base mining rate for each referred member who actively mines. There is no limit on the number of referrals, making it a scalable way to earn more Pi.
• Lockup Rewards: Pi Network encourages users to lock up a portion of their Pi holdings for a set period. The locked Pi reduces the circulating supply and boosts the mining rate. The longer and larger the lockup, the greater the potential increase in rewards.
• Running a Node: Pi Network allows users to run nodes on their computers to support decentralization. Node operators provide computing power to validate transactions and maintain the blockchain. Reliable nodes earn additional Pi rewards.
• Engaging with Pi Apps: Pi Network integrates decentralized applications (DApps) within its ecosystem. Users who engage with these apps contribute to the network’s growth and earn rewards. Some apps offer Pi-based services, creating more opportunities to use and earn the currency.

Use Cases For Pi Coins

Here are the main use cases:

• Peer-to-Peer Transactions: Pi Network enables direct transactions between users. The built-in wallet allows seamless transfers without traditional banking intermediaries. Instant transactions with zero fees make it a practical alternative to fiat payments.
• Decentralized Applications (DApps): Pi Network supports developers building applications that use Pi as a native currency. Users can spend Pi within these apps for services such as gaming, entertainment, and digital assets. The ecosystem expands as more developers integrate Pi into their platforms.
• E-Commerce Payments: Pi Network may allow businesses to accept Pi as a payment method. Online and offline merchants can integrate Pi transactions, allowing users to purchase goods and services. The growing adoption of Pi in marketplaces strengthens its value.
• Decentralized Finance (DeFi) Services: Pi Network offers opportunities for DeFi applications, including lending, borrowing, and staking. Users can earn passive income by participating in financial services that operate without traditional banks. Smart contracts ensure security and transparency.
• Community Governance: Pi Network grants users governance rights based on their Pi holdings. Community members participate in decision-making processes, voting on network improvements, policy changes, and fund allocations. Decentralized governance strengthens the ecosystem and increases user involvement.

Is Pi Network Legit?

Pi Network was started in 2019 by Stanford graduates. It lets people mine Pi coins using a mobile app. Over 60 million people use it. But many people question if it is real. The network has been in an enclosed mainnet for a long time. This stops people from trading Pi outside the app. 

The system also rewards users for inviting others, which looks like a pyramid scheme. Some worry about their personal data because Pi Network asks for ID verification. Even with these issues, Pi Network still has many users. It says it will launch an open mainnet on 20 Feb 2025, which may solve some concerns.

Concerns About Pi Network as a Scam

• Data Privacy Issues: Pi Network asks users to verify their identity with personal documents. In May 2021, reports said user data was leaked in Vietnam. People thought the leak came from Pi Network’s system. But Pi Network and its KYC provider said they were not involved. Still, many people worry about how safe their data is.
• Prolonged Enclosed Mainnet Delay: Pi Network has kept its system closed for years. This means users cannot trade Pi outside its app. Many question why it takes so long.
• Pyramid Scheme Allegations: Pi Network lets users earn more Pi by inviting others. This setup looks like a pyramid scheme. In July 2023, authorities in China’s Hunan Province called Pi Network a scam. They warned that the system is risky because it depends too much on referrals.
• Funding Concerns: Pi Network makes money by showing ads in its app. Critics say the project focuses more on making ad money than on building a real cryptocurrency. The team does not clearly explain how they use the funds. The long wait for the open mainnet makes some people think the project is not serious.

Pi Network makes mining easy, but concerns about data privacy, slow progress, referral-based rewards, and unclear funding raise doubts. People should think carefully before joining.

Pi Launch Price Prediction

On February 20, 2025, Pi Network launched its Open Mainnet, transitioning from a closed ecosystem to a fully decentralized network. This significant milestone has allowed Pi Coin to be traded on major cryptocurrency exchanges, including OKX, Bitget, and MEXC. 

Upon its debut, Pi Coin experienced notable volatility, with initial trading prices ranging between $1.24 and $2.20. Within hours, trading volumes on OKX surpassed $100 million, indicating substantial market interest. Analysts suggest that if Pi Coin secures additional listings on prominent platforms like Binance, its price could experience further appreciation.

The Future of Pi Network

With the network now fully operational, users can transfer and trade Pi Coins beyond the confines of the Pi Network app, enhancing the coin’s utility and accessibility. 

The project’s roadmap includes plans to develop a robust ecosystem of decentralized applications (DApps) that leverage Pi Coin for various use cases, ranging from financial services to digital marketplaces. 

The core team is also focusing on securing additional exchange listings to increase liquidity and user engagement. As the network evolves, its success will largely depend on its ability to foster a vibrant developer community, ensure regulatory compliance, and maintain user trust through transparent operations.

Conclusion

Pi Network is bringing cryptocurrency to everyday people by allowing easy mining on mobile phones. It has a strong community and a growing ecosystem where users can trade, shop, and use Pi coins for services. The launch of the Open Mainnet has made Pi more useful, allowing trading on exchanges. 

However, challenges like price volatility, adoption, and security remain. Pi Network’s success will depend on how well it grows and gains trust. If more businesses and developers accept Pi, it could become a valuable digital currency.

FAQs

What will the Pi network be used for?

Pi Network is creating a digital economy where users can mine and use Pi coins for real transactions. It allows people to send and receive Pi directly without relying on banks. Developers are building decentralized applications (dApps) on the network, making Pi useful for various online services. 

Businesses may accept Pi as payment in the future, expanding its real-world use. Pi Network is growing into a system where people can trade, shop, and engage in financial services using Pi coins.

Can Pi coins be exchanged for real money?

Pi coins are now tradable on cryptocurrency exchanges after the Open Mainnet launch on February 20, 2025. Users who complete the Know Your Customer (KYC) verification can transfer Pi to supported exchanges and trade it for other cryptocurrencies or fiat money.

How much is 1 Pi worth now?

Pi coins have had different prices on various exchanges since the Open Mainnet launched. The market decides the value based on supply and demand, so prices change frequently. Some exchanges report prices ranging from $1.24 to $2.20. Currently, Pi is trading around $1.2 on Bitget and OKX exchange.

Can I sell my Pi coin?

Yes, you can sell your Pi coins on exchanges like Bitget and OKX. People who complete KYC verification can transfer Pi to supported exchanges and sell it for other cryptocurrencies or fiat money.

When will Pi Network launch its open mainnet?

Pi Network launched its Open Mainnet on February 20, 2025, at 8:00 AM UTC. Users can now move Pi coins outside the enclosed system and trade them on exchanges.