The growing dominance of the Pi Network core team over its cryptocurrency supply has sparked fresh concerns about decentralization. According to data from PiScan, the core team holds a 82.8 billion Pi Coins, a significant portion of the total 100 billion PI supply.
This level of concentration, while potentially necessary in early development stages, poses serious questions about the network's future decentralization and governance structure. With control over such a vast majority of Pi Coins, the core team retains disproportionate influence over the ecosystem.
Recent findings indicate that:
- 62.8 billion PI are stored in six core team wallets.
- An additional 20 billion PI are held in approximately 10,000 unlisted wallets linked to the core team.
- This brings the total controlled by the team to 82.8% of the maximum supply.
To make matters worse, the network operates with only 43 nodes and three validators worldwide. Compared to major Layer 1 blockchain networks like Bitcoin (BTC) with 21,000 nodes, Ethereum (ETH) with 6,600 nodes, and Solana (SOL) with 4,800 nodes, Pi Network’s validator count is alarmingly low.
This extreme centralization means that the Pi Network core team has disproportionate control over transactions, governance, and decision-making processes.
Beyond network control, transparency concerns are also rising. PiScan has pointed out that analyzing Pi Network’s source code and on-chain data remains challenging due to its incomplete openness.
Regarding the information about the burning of PI tokens: yes, there might be some confusion.
— Piscan.io (@piscanofficial) March 7, 2025
This is Stellar’s mechanism, where the fee pool is removed from circulation and considered burned. This mechanism exists in the Stellar core that Pi Network utilizes.
We purely…
In addition, the 2025 privacy policy update revealed that ChatGPT is now used for Know Your Customer (KYC) verification. This was not previously disclosed, and the implications of AI-driven identity verification remain unclear.
According to the updated policy:
“We use ChatGPT, as a trusted AI partner, to automate identity verification and enhance security measures. By using our KYC services, users consent to the use of ChatGPT and other AI providers that may be later implemented as part of our KYC process.”
This AI-driven KYC approach adds another layer of complexity to data privacy, security, and user consent. Questions are now being raised about how user data is processed and whether third-party AI integration affects privacy rights.
Declining Interest and Market Instability
Pi Network’s credibility is further dented by technical challenges during the mainnet migration. Frustration is mounting among users due to prolonged lock-up periods and limited access to their tokens. As a result, some are attempting to sell their Pi Network accounts.
The whole process is a joke. ~80% of my balance shows as unverified although all of my security circle has completed KYC. No additional actions are listed to be taken in order to clear this up. Furthermore, nobody got back to me on a support ticket I opened weeks ago. What gives?
— DigitalAddict (@DigitalAddict0) March 10, 2025
Google Trends data reflects this growing dissatisfaction:
- On February 20, during the mainnet launch, search interest for “Pi Network” hit 100 (peak popularity).
- By March 12, this figure had plummeted to just 12, highlighting declining public interest.
Pi Coin’s price has experienced sharp fluctuations, swinging between $1.30 and $2.00 within days. In the past 24 hours, it has dropped more than 55% from its all-time high, with trading volumes also decreasing significantly.
Despite these setbacks, Pi Coin has still managed to climb to the 11th largest cryptocurrency on CoinMarketCap, just weeks after its listing on February 20.
As users continue to lose confidence, the future of Pi Network hinges on whether it can address these structural flaws and transition toward a more open, trust-based ecosystem.
HODL Team
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