Pi Network is rapidly growing and has attracted over 60 million users, transitioning from a closed ecosystem to an open blockchain and real-world transactions. At the core of this shift lies Pi Network's tokenomics, governing the creation, distribution, and utility of PI tokens.
PI Token Supply and Allocations
According to the 2019 whitepaper, the total supply of PI is 100 billion tokens. Of these, 80 billion are allocated to the community, including mining rewards and referral bonuses. The remaining 20 billion are reserved for the core team responsible for development and strategic initiatives.
Deflationary Mechanism
A cornerstone of Pi’s tokenomics is the deflationary mechanism that controls supply and demand. As the network grows, the base mining rate decreases, mimicking Bitcoin’s halving events. This approach encourages participants to hold or use PI tokens, creating scarcity.
PI Tokenomics and Utility
With the Open Network launch, Pi has become a functional asset available on several exchanges. The platform aims to have participants use PI for transactions and ecosystem engagement. Initiatives like auctions and events encourage PI usage. The goal is to make PI a competitive payment currency.
Although Pi Network shows great promise, its tokenomics face scrutiny. Some users are concerned with centralized control and transparency regarding future supply adjustments. Nevertheless, successful evolution could make Pi a key asset in the future.
