Pi Network (PI): Get ready for the era of open mainnet

Project Core Introduction

Pi Network is an innovative cryptocurrency platform created in 2019 by a team of PhDs from Stanford University. Its core mission is to break down the high barriers of traditional mining, allowing ordinary smartphone users to participate in the digital asset ecosystem.

Traditional cryptocurrency mining often requires specialized hardware and high electricity costs. Pi Network changes this situation by adopting the Stellar Consensus Protocol (SCP) consensus mechanism, enabling users to mine with low energy consumption on mobile devices. As of October 2024, the platform has accumulated over 45 million active users.

Current Pi Coin real-time data: price at $0.21, 24-hour change of -0.28%, market cap of $1.72B, circulating supply of approximately 837 million coins, with a maximum supply of 100 billion coins.

Differentiation Advantages of Pi Network

Compared to other cryptocurrencies that require high-end hardware, Pi Network takes a completely different approach. Anyone with a smartphone can participate in network security maintenance through simple operations.

The platform’s user ecosystem is divided into four key roles:

• Pioneers: Core miners who verify their identity daily through login
• Contributors: Users who add trusted contacts within the security circle
• Ambassadors: Promoters responsible for inviting new members to join the community
• Node Operators: Participants who run Pi Node software on personal computers to enhance network decentralization

In-Depth Analysis of the Consensus Mechanism

Pi Network’s SCP protocol uses federated Byzantine consensus, which has three core advantages over Bitcoin’s Proof-of-Work model:

Energy Efficiency: The protocol is lightweight and does not excessively drain phone batteries or data.

Transaction Processing: SCP can efficiently handle large transaction volumes, laying the foundation for network scalability.

Decentralization of Power: Through federated Byzantine agreement, Pi Network avoids centralization, ensuring all major decisions are based on community consensus.

Mining Operation Process

Step 1: Download the official Pi Network app from iOS or Android app stores

Step 2: Register and verify your identity using your phone number or Facebook account

Step 3: Tap the lightning button to activate the 24-hour mining cycle

Step 4: Invite friends to join your security circle to increase mining rewards

Step 5: Maintain daily login activity to ensure continuous mining rewards

This low-power method is popular among users worldwide.

Multiple Income Mechanisms

In addition to basic mining, Pi Network offers various ways to increase earnings:

The security circle mechanism allows users to add trusted contacts, which enhances network security and increases individual mining multipliers.

Referral programs provide extra rewards to members who invite new users, with the reward ratio depending on the contribution of the invitees.

Periodic incentive activities, such as special events, distribute additional tokens to users who maintain app usage habits.

Token Economics Architecture

Pi’s token design reflects its community-driven philosophy. The total supply cap is 100 billion PI, allocated in an 80:20 ratio between the community and the core team.

Community Allocation (80%)

From the 80 billion PI community share:

Mining Reward Fund (65 billion PI): Used to incentivize active participants. It is estimated that about 30 billion PI will be generated before mainnet launch, but after KYC verification, this may decrease to 10-20 billion PI. The remaining portion will be gradually released through decreasing annual caps.

Community and Ecosystem Development (10 billion PI): Managed by the future Pi Foundation to fund community activities, developer grants, and ecosystem initiatives.

Liquidity Reserve (5 billion PI): Ensures smooth transactions within the ecosystem and initial liquidity supply.

Core Team Allocation (20%)

200 billion PI are reserved for the core development team, with unlocking speed linked to community mining progress and possibly subject to team-imposed lock-up conditions.

Mainnet Launch Timeline

Pi Network follows a clear three-phase development roadmap:

Phase 1: Test Launch (December 2018 - March 2020) Project released the mobile app, with “Pioneers” mining Pi daily through login. In March 2019, the technical white paper was published, outlining core concepts of accessibility, decentralization, and eco-friendliness.

Phase 2: Testnet Operation (March 2020 - December 2021) Launched a testnet allowing global nodes to verify transactions. Users obtained node software and test Pi, laying the foundation for the mainnet.

Phase 3: Mainnet Stage (December 2021 - present)

• Closed-loop mainnet: launched but isolated from external networks, allowing safe development and KYC migration in a controlled environment
• Open Mainnet: expected to launch by the end of 2024, enabling Pi to be listed on exchanges and transitioning from internal testing to real markets

Preparations Before Mainnet Launch

Complete KYC verification: This is a prerequisite for participating in the open mainnet. Users must submit identity verification information. The platform’s deadline is November 30, 2024. Users who do not complete it on time will be granted individual extensions.

Configure crypto wallets: Download or create compatible wallet apps (e.g., Pi Wallet) to receive tokens after mainnet launch.

Follow official updates: Continuously monitor Pi Network’s official channels for the latest announcements and detailed instructions on mainnet launch.

Post-Mainnet Trading Options

Once the open mainnet is live, users will be able to trade Pi through multiple channels:

Centralized Exchanges: Some mainstream trading platforms may list PI trading pairs, providing direct fiat or crypto exchange channels. Users can deposit coins into exchange accounts and place market orders.

Decentralized Exchanges: Web3 ecosystem DEX platforms support peer-to-peer trading without intermediaries. Connecting a self-custody wallet allows users to swap various tokens.

Over-the-Counter (OTC): Experienced users can negotiate trades directly with others, but caution is advised to prevent fraud.

Potential Risks Assessment

Although Pi Network has promising prospects, investors should be aware of several key risks:

Schedule Delays: The project has postponed mainnet launch multiple times, raising market concerns about network maturity and scalability.

Price Uncertainty: As of November 2024, PI has no official market price. The circulating “Pi IOU” (promise certificate) price is determined by speculative markets and may differ significantly from the actual value after listing.

Security Challenges: As the ecosystem expands, phishing scams and fraud activities are increasing. Users should only obtain information from official channels and avoid unofficial trading platforms.

Regulatory Uncertainty: The global regulatory environment for cryptocurrencies is evolving. Pi Network will need to navigate different legal requirements for listing on mainstream exchanges.

Latest Developments and KYC Progress

Since 2022, Pi Network has been in the closed-loop mainnet operation phase, with Pi coins tested internally. The scheduled open mainnet launch at the end of 2024 will open access to external exchanges and real markets.

KYC verification is crucial for transitioning to the mainnet. To ensure network integrity, the platform has set a verification deadline of November 30, 2024. Users who do not complete verification by then will receive limited extensions but may face balance transfer risks.

After completing this phase, Pi Network promises to release a more transparent mainnet roadmap and publish major updates that could impact PI’s tradability and market value.

Summary: Embrace the New Era of Pi Network

Pi Network has pioneered a new path in the crypto space with its disruptive mobile mining model and inclusive design. Its low-energy SCP consensus mechanism and community-oriented token distribution offer unprecedented opportunities for mass participation in digital assets.

The project’s success hinges on smoothly transitioning to the mainnet, fulfilling commitments, and establishing a foothold in the open market. As the open mainnet approaches, users who complete KYC early, prepare wallets, and follow official announcements will be the first to seize this pivotal opportunity.

If you are excited about the future of the Pi ecosystem, now is the best time to act.

Pi Network Frequently Asked Questions

Q: When will the open mainnet be officially launched?
A: Expected by the end of 2024, with the exact date not yet officially confirmed.

Q: Can I sell PI coins now?
A: Currently, only within the Pi ecosystem. Trading on the open market will be possible after the mainnet launch.

Q: Is Pi mining harmful to phones?
A: No. The process is low energy and low data consumption, completely safe for mobile devices.

Q: What is Pi IOU?
A: It is a promise certificate issued by some speculative platforms, with prices determined by the market, and not directly related to the official Pi Network.