Pi Network (PI) - The Opportunity to Mine the Next Generation Cryptocurrency and What to Prepare Before Mainnet Launch

Basic Difference: Why Pi Network Attracts Over 45 Million Users

Founded by scientists from Stanford in 2019, Pi Network has achieved the impossible: bringing cryptocurrency mining into the hands of ordinary people through smartphones. Unlike Bitcoin or other digital currencies that require expensive ASIC machines or mining farms consuming hundreds of MW of electricity, Pi Network uses a completely different approach.

Instead of traditional Proof-of-Work, Pi Network applies the Stellar (SCP) Consensus Protocol, a Byzantine Fault Tolerance-based linking mechanism. This approach allows the network to operate efficiently without consuming enormous amounts of energy. As a result: you can mine Pi Coin simply by tapping a button in the app every 24 hours, without worrying about draining your phone’s battery or mobile data.

This explains why, as of October 2024, Pi Network has attracted 45 million active users. That’s not a small number in the blockchain space.

Earning Mechanism: Going Beyond Just Pressing a Button

Pi Network openly admits that mining Pi is just the tip of the iceberg. The platform has designed a role-based system to maximize returns for users:

Pioneers (Pioneers): The basic level — log in daily to verify you are human.

Contributors (Contributors): Add trusted individuals to your “Security Circle.” This doubles your mining speed and helps protect the network.

Ambassadors (Ambassadors): Introduce friends and family to Pi Network. Each time they mine, you earn a percentage of their performance.

Node Operators: Run Pi Node software on your computer to validate transactions, further decentralizing the network.

Additionally, Pi Network periodically hosts “Bonus Epochs” — events that offer opportunities to earn extra Pi for active users.

Tokenomics: Long-Term Plan for 100 Billion Pi

The total maximum supply of Pi Network is set at 100 billion Pi. Distribution follows an 80/20 ratio:

80% for the Community (80 billion Pi) divided into three main parts:

1. Mining Rewards (65 billion Pi): For rewarding early and post-Mainnet launch users. An estimated 30 billion Pi has been mined during the Testnet phase, but after completing KYC (Know Your Customer), this number may drop to 10-20 billion. The remaining will be issued through a new Mainnet mining mechanism, with decreasing annual limits. This is the main reason why Pi mining will gradually end: each year’s supply cap will be lower than the previous, until all 65 billion Pi are issued.

2. Community & Ecosystem Fund (10 billion Pi): Managed by Pi Foundation, used to sponsor events, developer grants, and ecosystem-building initiatives.

3. Liquidity Fund (5 billion Pi): Ensures sufficient liquidity for trading on exchanges, making it easy to buy/sell Pi Coin when the Mainnet launches.

20% for the Core Team: 20 billion Pi allocated to the founders and builders of Pi Network. These tokens will unlock gradually, aligned with community mining pace, and may be subject to additional lock-up conditions set by the team.

Time-Based Reward Reduction Mechanism

The annual supply cap will be adjusted according to a decreasing formula, possibly calculated daily or even hourly, depending on factors like lock-up rates and remaining supply. This ensures smooth distribution without shocks, promoting market stability.

Once the entire 65 billion Pi allocated for mining is issued, Pi Network will need to discuss introducing slight inflation or other incentives to maintain long-term ecosystem health. These decisions will be made by the Pi Foundation and the community, ensuring decentralization.

Three-Stage Journey: From Beta to Open Mainnet

Stage 1 - Beta (December 2018 - March 2020): Pi started with a simple mobile app allowing “Pioneers” to mine by logging in daily. The whitepaper was published on March 14, 2019, outlining core principles: accessibility, decentralization, and eco-friendliness.

Stage 2 - Testnet (March 2020 - December 2021): Pi Testnet launched, enabling global nodes to validate transactions. The community received Node software and Test-Pi to build decentralized applications, preparing for a secure decentralized mainnet.

Stage 3 - Mainnet (December 2021 - Present & Future):

• Mainnet Closed (December 2021 - Present): The main network is operational but isolated from the outside world. This allows development and KYC migration in a controlled, secure environment.
• Mainnet Opening (Expected End of 2024): This is a milestone. When the Mainnet opens, Pi Coin will be tradable on centralized (CEX) exchanges like other cryptocurrencies, as well as decentralized (DEX) platforms. The true value of Pi will be determined by the market.

Preparing for Mainnet: KYC is the Key

Pi Network openly states that to transfer your Pi balance to Mainnet, you must complete the KYC (Know Your Customer) process. This is identity verification to comply with global regulations.

Important Deadline: Pi Network has set the KYC deadline as November 30, 2024. Those who haven’t completed it will receive a grace period, but should act quickly.

Three Preparation Steps for Airdrop:

1. Complete KYC: Verify your identity through the official KYC process. This is mandatory to receive Pi Coin on Mainnet.

2. Prepare Wallet: Set up a compatible cryptocurrency wallet (e.g., Pi Wallet) ready for the transfer.

3. Follow Official Channels: Register for notifications from Pi Network’s official channels to not miss important details about Mainnet launch date and airdrop procedures.

Trading Pi Coin: The Path After Mainnet Launch

Once the Mainnet opens, you will have three options to trade Pi:

Centralized Exchange (CEX): Platforms like major exchanges may list Pi Coin, allowing trading Pi with fiat or other cryptocurrencies. Deposit Pi into your exchange account and place sell orders. CEXs are ideal for high liquidity and easy trading.

Decentralized Exchange (DEX): Web3-savvy users can use DEXs for peer-to-peer trading directly without intermediaries. Connect your crypto wallet to the DEX to trade Pi with different pairs.

Peer-to-Peer (P2P) Trading: Directly exchange Pi with other individuals. Caution is advised due to higher risks of scams or unfavorable terms.

Note: Currently, Pi Coin has no fixed price as Mainnet has not launched. Speculative trading platforms may have announced “temporary” prices, but these are not guaranteed by Pi Network.

Risks to Know

Schedule Delays: Pi Network has experienced multiple postponements. The longer-than-expected testing phase raises doubts about actual scalability.

Uncertain Value: Until November 2024, Pi Coin has no real market price. Its value will only become clear once Pi is freely traded on open markets.

Rising Scams: As Pi Network gains fame, phishing and scam efforts increase. Always verify information through official channels and avoid platforms offering “early” Pi.

Legal Currency Risks: Cryptocurrencies are under strict regulation worldwide. Pi Network will need to navigate different legal frameworks, especially if aiming to operate on major exchanges.

Pi IOUs: Temporary Contracts with Risks

Some speculative platforms have offered “Pi IOUs” — claims that can be traded for Pi Coin in the future. However, Pi Network does not guarantee their value. These are high-risk tools with no direct link to actual Pi.

Final Point: Is Pi Network Truly the Future?

Pi Network has garnered significant attention in the blockchain community by simplifying mining and lowering access barriers. With 45 million users, a community-driven ecosystem, and an innovative consensus protocol, it offers a unique entry point into the world of cryptocurrency.

However, the real success of Pi Coin depends on a smooth transition to the open Mainnet, fulfilling all promises, and establishing a stable position in the real market.

Whether you are considering mining, preparing to trade Pi Coin, or simply observing this project’s development, the best action now is to complete KYC, prepare your wallet, and follow official channels. When the Mainnet truly launches, the steps you take today will determine whether you are ready or not.

Pi Network is at a critical signing stage. Stay tuned to see what happens next.