What Is Pi Network (PI) and How to Prepare for the Upcoming Mainnet Launch?

Pi Network, developed by a team of Stanford PhDs and launched in 2019, is a cryptocurrency platform designed to bring digital assets into the hands of the average person by making crypto mining accessible through mobile devices. Traditional cryptocurrency mining usually involves substantial computing power and high electricity costs, limiting participation. Pi Network changes the game by allowing anyone with a smartphone to mine Pi Coin, the network’s native currency, with minimal energy consumption.

 

Pi Network uses a consensus algorithm that enables secure mining without the heavy resource drain commonly associated with crypto mining, making it eco-friendly and user-accessible. With over 45 million active users as of October 2024, Pi Network has gained popularity worldwide. However, it’s still in development, and the anticipated mainnet launch in late 2024 could make Pi Coin available for trading on exchanges for the first time.

 

Why Is Pi Network Different?

Unlike other cryptocurrencies that require intensive hardware, Pi Network’s mobile-first approach allows anyone with a smartphone to contribute to the network’s security. This user-friendly design aligns with Pi’s mission to make cryptocurrency accessible to the masses, overcoming traditional barriers to entry. The Pi Network app allows you to “mine” Pi coins simply by opening the app and tapping a button once a day. This easy process has been integral to Pi Network’s large user base.

 

Moreover, Pi Network has a unique structure that classifies users into four main roles:

 

• Pioneers: Basic miners who log in daily to verify they’re human.

• Contributors: Users who add trusted individuals to their security circle.

• Ambassadors: Members who introduce new people to the network.

• Nodes: Users who run the Pi Node software on their computers, further decentralizing the network.

These roles help Pi Network create a community-driven platform, where users earn Pi coins based on their engagement and network building.

 

Features of Pi Network’s Consensus Mechanism

The Pi Network operates on the Stellar Consensus Protocol (SCP), which focuses on federated consensus. This is different from the energy-intensive Proof-of-Work (PoW) model used by Bitcoin. SCP’s key benefits include:

 

• Low energy consumption: This protocol is less resource-intensive, allowing mining on mobile devices without the environmental impact.

• Scalability: SCP enables the network to handle large volumes of transactions efficiently.

• Decentralization: Through a federated byzantine agreement, SCP allows Pi Network to avoid centralized control, ensuring that user consensus drives network changes.

This unique mining model allows Pi Network to offer an inclusive, environmentally friendly way to participate in the cryptocurrency space, especially for those who might not have access to advanced hardware.

 

Mining Pi Coin on the Pi Network platform differs from traditional mining in that it doesn’t require massive amounts of electricity or expensive hardware. Instead, Pi Network uses a consensus mechanism called the Stellar Consensus Protocol (SCP). This protocol relies on a system of trusted nodes and federated byzantine agreements, which allows the network to validate transactions securely and efficiently without extensive energy consumption.

 

 

Here’s a step-by-step guide to get started with Pi Network mining:

 

Step 1: Download the Pi Network App

Available on iOS and Android, the app is easy to install from major app stores.

 

 

Step 2: Sign Up and Get Verified 

You can sign up using your phone number or Facebook account.

 

Step 3: Start Mining

By tapping the lightning bolt icon in the app, you activate mining once every 24 hours.

 

 

Step 4: Build Your Security Circle 

Invite friends to join and add them to your security circle, boosting your mining rate.

 

 

Step 5: Maintain Regular Activity

To continue earning, you must log in daily to keep your mining session active.

 

Pi Network’s method uses a low-energy approach, meaning that mining Pi doesn’t drain your phone’s battery or consume excessive data.

 

Pi Network mining mechanism | Source: Pi Network whitepaper 

 

Earning Pi goes beyond simple mining; Pi Network offers several ways to increase rewards:

 

• Security Circles: Adding trusted users to your circle enhances security and increases your mining rate.

• Referral Program: By inviting others to join Pi Network, you can boost your Pi mining rate by earning a percentage of their contributions.

• Bonus Epochs: Periodic events offer opportunities to earn extra Pi for consistent app usage and network support.

As of October 2024, Pi Network has 45 million active participants. Many of these users are drawn by the ease of mining and the chance to be part of a potentially groundbreaking platform. However, the real value of Pi Coin will only become clear once it’s listed on exchanges.

 

Pi Network’s tokenomics reflect its commitment to community ownership and ecosystem development, guided by the principles established in its original whitepaper from March 2019. Pi Network’s total max supply is set at 100 billion Pi, with an 80/20 distribution split between the community and the Pi Core Team.

 

Distribution Overview

Source: Pi Network whitepaper 

 

1. Community Allocation (80%)

Of the total 100 billion Pi supply, 80 billion Pi is allocated to the community, divided into three main areas:

 

1. Mining Rewards (65 billion Pi): Reserved for rewarding active users, both past and future. Approximately 30 billion Pi was mined pre-Mainnet, though KYC verification may reduce this to 10-20 billion Pi. The remaining supply will be distributed through a new Mainnet mining mechanism, with annual limits decreasing over time to ensure sustainable rewards.

2. Community Organization and Ecosystem Building (10 billion Pi): Managed by the future Pi Foundation, this allocation will fund community events, developer grants, and ecosystem initiatives to drive network growth and engagement.

3. Liquidity Pool (5 billion Pi): Set aside to provide liquidity within the Pi ecosystem, enabling smooth transactions and ensuring accessibility for Pioneers and developers.

2. Core Team Allocation (20%) 

20 billion Pi is reserved for the Pi Core Team. This portion is unlocked at a pace that matches community mining progress and may be further subject to lockup conditions imposed by the team itself.

 

Mining Reward Structure and Supply Limit Decline

Pi Network’s mining rewards structure aims to incentivize continuous contributions and engagement. The yearly supply of mining rewards will decrease over time, with the following key elements:

 

• Declining Yearly Supply Limit: The yearly limit on mining rewards will be adjusted based on a declining formula, with each year’s limit lower than the previous one.

• Granular Time Epochs: Supply limits may be calculated on a daily or smaller time basis, depending on factors like lockup ratios and remaining supply. This approach ensures a smooth and gradual distribution, promoting stability.

• Enhanced Rewards for Diverse Contributions: Beyond mining, Pioneers will be rewarded for other contributions like app usage, node operation, and Pi lockup.

Potential for Future Adjustments

The current tokenomics model could be refined before Pi Network’s Open Network phase, based on the results from the Enclosed Network period. Once the full supply is distributed, there may be discussions about introducing inflation or additional incentives to support ecosystem growth, replace lost Pi, and maintain liquidity. These decisions will be guided by the Pi Foundation and the community, ensuring a decentralized and sustainable approach to the network’s long-term health.

 

Pi Network’s transition to an open mainnet has been long awaited. While no fixed date has been announced, the Pi Core Team has hinted that the mainnet may go live by the end of 2024. This launch will mark Pi Coin’s transition from a test network currency to a tradable asset on centralized and decentralized exchanges.

 

How to Prepare for the Pi Coin Airdrop

Pi Network plans to conduct an airdrop as part of the mainnet launch, distributing Pi Coins to verified users. To participate in the airdrop, users must complete the following steps:

 

1. Complete KYC: All users must complete KYC verification to receive their Pi Coin balance on the mainnet.

2. Set Up a Wallet: Users should prepare a compatible crypto wallet (e.g., Pi Wallet) for the transfer.

3. Monitor Updates: Following Pi Network’s official channels is essential to stay updated on airdrop details.

The airdrop will likely occur shortly after the mainnet launch, enabling verified users to receive Pi Coins and, potentially, trade them on exchanges.

 

Pi Network has followed a structured three-phase roadmap aimed at gradually building a decentralized, user-driven ecosystem. Each phase has focused on different aspects of network development, laying the groundwork for a fully functional and accessible cryptocurrency. Here’s a breakdown of each phase:

 

Phase I: Beta Launch (Dec 2018 - Mar 2020)

Pi Network started with a mobile app in December 2018, enabling "Pioneers" to mine Pi Coins by logging in daily. The Pi Whitepaper was released on March 14, 2019, introducing key principles like accessibility, decentralization, and eco-friendly mining.

 

Phase II: Testnet Launch (Mar 2020 - Dec 2021)

The Pi Testnet launched in March 2020, allowing global nodes to validate transactions. This phase provided Pi’s community with Node software and a Test-Pi version to build decentralized apps, laying the groundwork for a secure, decentralized mainnet.

 

Phase III: Mainnet Launch

• Enclosed Network (Dec 2021 - Present): The mainnet is live but isolated from external networks, allowing secure app development and KYC migration within a controlled environment.

• Open Network (Expected Start TBD): Once the ecosystem matures, Pi will enable full connectivity, allowing Pi Coin to be traded on exchanges and integrated with other networks, realizing Pi Network’s vision of a community-driven, open cryptocurrency.

Once the mainnet launches, Pi Coin could be sold on various platforms. Here’s an overview of the trading methods users can expect:

 

1. Centralized Exchanges (CEX): These exchanges, such as KuCoin potentially, provide a straightforward way to trade Pi Coin for fiat or other cryptocurrencies. Users deposit their Pi Coin into an exchange wallet and place a sell order at a preferred price. CEXs often appeal to users who value convenience and liquidity.

2. Decentralized Exchanges (DEX): DEX platforms allow peer-to-peer trading without intermediaries, which may be ideal for users familiar with Web3. Connecting a crypto wallet to a DEX could enable you to trade Pi Coin against various crypto pairs.

3. Peer-to-Peer (P2P) Trading: For users who prefer to exchange Pi directly with other individuals, P2P trading is an option. However, P2P trading requires extra caution as there is a higher risk of fraud or unfavorable terms.

Note: Since the PI coin is not yet launched, these are only possible options for buying or trading PI. Please stay updated with official announcements for more listing information. 

While Pi Network presents a unique opportunity, it also has potential risks and limitations:

 

• Delayed Launches: Pi Network has repeatedly postponed its mainnet launch, causing skepticism among some users. The prolonged test phase raises questions about the network’s scalability and readiness.

• Unknown Future Value: As of November 2024, Pi Coin has no fixed value. Speculative markets have attempted to estimate Pi’s price, but its real value will only be determined once the coin is available on open markets.

• Security Concerns: As Pi Network gains popularity, phishing and scam attempts targeting Pi users have increased. Users should verify information through official channels and avoid speculative trading platforms that may offer Pi Coin prematurely.

• Regulatory Issues: Cryptocurrencies are under increased scrutiny globally. While Pi Network aims to be accessible and user-friendly, it will need to navigate regulatory landscapes, especially if it intends to operate on major exchanges.

Source: Pi Network blog 

 

Pi Network has been in its Enclosed Mainnet Phase since 2022, with the Pi Coin currently tradable only within its own ecosystem for testing purposes. The open mainnet, expected to launch in late 2024, is anticipated to open the network to external exchanges and enable the trading of Pi Coin.

 

Importance of the KYC Verification Process

In preparation for the mainnet, Pi Network introduced a Know Your Customer (KYC) process to verify users' identities. Completing KYC is crucial for users who want to transfer their Pi balances to the mainnet when it launches.

 

To maintain network integrity, Pi Network has set a KYC deadline of November 30, 2024. Users who haven’t completed KYC by then will receive individual grace period timers to ensure they don’t lose their Pi balance if they’re ineligible for KYC or encounter issues. After this deadline, Pi Network plans to release a more transparent roadmap for the open mainnet launch and introduce updates that may affect Pi’s tradability and value.

 

Pi Network has created a buzz in the crypto space with its novel approach to mobile mining and its vision of making cryptocurrency accessible to the masses. With a user-friendly platform and innovative consensus protocol, Pi Network offers a unique entry point into cryptocurrency. However, Pi Coin’s success will largely depend on the network’s ability to transition to the open mainnet, fulfill its promises, and achieve a stable market presence.

 

Whether you’re interested in mining Pi, trading Pi Coin, or simply observing the progress of this ambitious project, Pi Network offers a glimpse into the future of decentralized digital currencies. As the open mainnet launch approaches, staying informed through official channels and preparing ahead will ensure you’re ready to take advantage of all that Pi Network has to offer.

 

1. What is the expected launch date for Pi Network's mainnet?

Pi Network is anticipated to launch its open mainnet by the end of 2024, though the exact date is unconfirmed.

 

2. Can I sell Pi Coin now?

Currently, Pi Coin is only tradable within Pi Network’s ecosystem. After the mainnet launch, it will be available for trading on exchanges.

 

3. Is Pi mining safe for my mobile device?

Yes, Pi Network’s mining process doesn’t consume significant energy or data, making it safe for mobile devices.

 

4. What are Pi IOUs?

Pi IOUs are tradable claims to Pi Coin, available on some speculative platforms. However, their value is not backed by Pi Network itself.