Recent data challenges Pi Network's decentralization level, sparking discussions in the community.
Centralization Concerns in Pi Network
A recent report highlights high centralization in Pi Network: 82.8% of all tokens are controlled by the core team. Specifically, 62.8 billion tokens are distributed across six wallets linked to the team, with an additional 20 billion reserved for development. This raises doubts regarding the project's true nature and security.
Why Decentralization Matters in Cryptocurrency
Centralization contradicts the fundamental principles of cryptocurrency, creating:
- Single point of failure - Security risks - Lack of transparency - Contradiction to the idea of decentralization
Each of these factors significantly increases the network's vulnerability and reduces participant trust.
Comparison with Other Blockchains
Pi Network significantly lags behind decentralized blockchains like Bitcoin and Ethereum. Unlike the thousands of nodes and validators, Pi Network has just over 43 nodes and only 3 active validators, raising concerns about network security.
The central control questions within Pi Network raise significant levels of concern. To ensure long-term viability and retain community trust, Pi Network must take urgent measures to increase transparency and enhance decentralization.
