What is Pi Network? 

Pi Network is a mobile-first cryptocurrency designed to make digital currency accessible without the need for expensive mining hardware or technical expertise. Founded by Stanford graduates and launched on Pi Day, March 14, 2019, the project aims to build a decentralized, peer-to-peer ecosystem that empowers everyday users.

Key milestones include its inception by a team of Stanford alumni, the initial launch that leveraged mobile mining to rapidly grow its user base, and ongoing developments that have transitioned the project through different phases, from its early testing stages to its live token and mainnet. 

This article details Pi Network’s token model, its evolving mining mechanism, and a comprehensive roadmap outlining the network’s future phases.

What is Pi Network?

Pi Network is a blockchain project that creates a digital currency accessible through a mobile application. Its design enables anyone to participate in cryptocurrency mining without the need for expensive hardware or advanced technical skills. Users mine Pi directly from their smartphones, which removes common barriers to entry and makes the process accessible to a broad audience. The network emphasizes inclusivity by employing trust circles and a mandatory KYC (Know Your Customer) process, ensuring that only verified individuals participate and thereby maintaining a secure, decentralized ecosystem.

Launched on March 14, 2019, Pi Day, by a team of Stanford graduates, Pi Network began as a mobile-first experiment in digital currency. The project has evolved through several development phases: it started with a beta testing phase, progressed to a Testnet environment, and now operates in an enclosed Mainnet phase that incorporates KYC requirements.

From the outset, Pi Network has prioritized user accessibility and community building over traditional, resource-intensive mining methods, setting it apart from other blockchain projects.

Pi Network Token Model and Supply

In the Pre-Mainnet phase, Pi Network’s token model was designed to rapidly expand the network and distribute tokens widely. Mining rewards were issued dynamically to encourage users to join and help secure the network. The model employed a dynamic reward mechanism in which the systemwide base mining rate (B) was reduced, or “halved,” each time the number of engaged Pioneers increased by a factor of ten. This approach balanced token issuance with network growth, ensuring widespread and equitable distribution in the early stages.

With the transition to Mainnet, the network adopted a fixed total supply model, capping the number of Pi tokens at 100 billion. In this phase, the allocation is structured so that 80% of the tokens go to the community and 20% are reserved for the Core Team. This allocation supports ongoing user incentives while reinforcing the role of the community as the primary driver of the network.

Moving to a capped supply model allows for predictable token planning, facilitating structured allocations for mining rewards, community initiatives, and ecosystem development. This predictability is critical for maintaining long-term network stability and ensuring sustainable growth.

Pi Network Mining Mechanisms

Pi Network’s mining mechanisms have evolved from the pre-Mainnet phase into a more complex system for the Mainnet. In the pre-Mainnet phase, the mining formula determined a Pioneer’s hourly mining rate through a combination of a fixed systemwide base rate (B), additional rewards for valid security circle connections, and bonuses from active referral team members.

Specifically, each active Pioneer received a base rate, and then extra rewards were added based on up to five security circle connections. Referral bonuses were also applied as a percentage of the base rate for each active referral. This method was expressed mathematically as M = B • [1 + 0.2 • min(Sc,5)] plus the referral bonus, where Sc represents the number of valid security circle connections. This straightforward formula supported early network growth and secure participation.

With the transition to Mainnet, the mining formula expanded to include additional reward components while still retaining core elements from the pre-Mainnet system. The Mainnet mining formula introduces a Lockup Reward (L) designed to reward long-term commitment. The lockup reward is calculated using the formula L(B) = Lt • Lp • log(N) • B, where Lt is the multiplier based on the duration of the lockup, Lp is the multiplier reflecting the percentage of Pi locked relative to the transferred balance, and log(N) accounts for the total number of previous mining sessions.

In addition to lockup rewards, the Mainnet system incorporates an App Usage Reward (A), which incentivizes genuine engagement by rewarding time spent on Pi apps through logarithmic functions that provide diminishing returns. Furthermore, a Node Reward (N) is implemented to support network decentralization; it is determined by metrics such as uptime, port accessibility, and CPU contribution using the formula N(I) = node_factor • tuning_factor • I. A placeholder for future contribution rewards, X(B), has also been incorporated.

These additional elements, combined with the core rewards, yield a comprehensive Mainnet mining rate expressed as M = I(B,L,S) + E(I) + N(I) + A(I) + X(B), where I(B,L,S) represents the individual base mining rate including the lockup component.

An essential aspect of the Mainnet mining mechanism is the dynamic systemwide base mining rate (B). Unlike the static rate in the pre-Mainnet phase, B is now recalculated in real-time, on a monthly, daily, or even more granular basis, depending on the remaining token supply for the period and the aggregated reward coefficients from all active Pioneers. This dynamic adjustment ensures that the overall token issuance remains within the annual supply cap and aligns with network activity.

Finally, KYC plays a crucial role in the integrity of the mining process on Mainnet. Only verified Pioneers are allowed to transfer their mined Pi, which ensures that rewards are allocated to real users. Pioneers who do not complete the KYC process within the designated period see their mined Pi reallocated for use by other verified members. This requirement not only enhances network security but also upholds the integrity of the reward distribution system.

Pi Network Roadmap and Phases

Pi Network’s roadmap outlined a clear evolution from its inception to a fully integrated, decentralized ecosystem. The journey began with the Beta phase, which served as the testing ground for early functionality. Launched on Pi Day, March 14, 2019, the mobile app enabled initial user onboarding and allowed pioneers to engage with the concept of mobile mining in a controlled, early-stage environment.

The project then progressed to the Testnet phase, where the focus shifted to decentralized testing. During this stage, Pi Network rolled out Node software on desktop platforms, providing a distributed testing environment. This phase was critical for evaluating the consensus algorithm and overall performance under decentralized conditions, thereby allowing the team to refine the network’s protocols and ensure robustness before the full Mainnet launch.

Phase III marks the transition to the Mainnet, divided into two distinct segments: the Enclosed Network and the Open Network. The Enclosed Network was launched in December 2021 as a controlled environment where KYC became mandatory for transferring mined Pi. This phase prioritized balance migration, network stabilization, and building the foundational ecosystem under a regulated setting.

Later, the Open Network was launched on February 19, 2025, which removed connectivity restrictions and enabled integration with external blockchains, centralized exchanges (CEXs), and onramp services. In addition, the Open Network introduced KYB verification for businesses to ensure secure interactions. Updated Node software, such as Node 0.5.1, was deployed to optimize performance and enable public node ranking, while initiatives like the Open Network Challenge further encouraged ecosystem participation.

Key milestones include the initial app release and beta testing in March 2019, the decentralized testing and Node rollout during the Testnet phase, and the controlled Mainnet launch of the Enclosed Network in December 2021. The subsequent launch of the Open Network in February 2025 marked full external integration and enhanced node participation, setting the stage for continued growth and broader adoption of Pi Network.

Ecosystem and Use Cases

The Pi Network ecosystem centers on its mobile app and desktop Nodes, which together provide a versatile platform for digital currency management and transactions. The mobile app serves as the primary gateway for users to register, conduct daily mining, complete KYC verification, and engage with the community. 

Through the app, users can check their balances, manage referrals, and receive important Pi-related updates. In parallel, Pi Nodes operate on desktop computers, where they validate transactions and support network decentralization. These Nodes offer users a secondary interface to access blockchain features, monitor node performance, and participate in consensus processes. 

The network facilitates peer-to-peer transactions, enabling seamless digital currency transfers while supporting integration with various applications. This integration allows app developers to embed Pi as a payment option and supports low-cost transactions across diverse digital services. For developers and businesses, Pi presents an opportunity to build decentralized applications using the Pi SDK and leverage a large, verified user base. Businesses can integrate Pi for digital payments and access cross-chain connectivity, opening avenues for revenue-sharing models and ecosystem collaborations that drive sustained growth.

Advantages and Challenges of Pi Network

Pi Network’s accessibility is a major advantage. Its mobile-first mining approach allows users to mine cryptocurrency directly from their smartphones without the need for specialized equipment. The user-friendly interface simplifies registration, daily check-ins, and community engagement, broadening participation. Additionally, the mining process is energy-efficient and resource-light compared to traditional methods, lowering entry barriers for users with limited technical expertise or financial resources. 

The network also benefits from community-driven growth and decentralized security, as trust circles and KYC verification ensure that only genuine users participate in securing the blockchain. However, challenges persist. The mandatory KYC process, while essential for security, can delay full access to network functionalities and may discourage some users. Moreover, transitioning from an enclosed Mainnet to an open network introduces technical and operational risks, including issues of scalability, connectivity, and security as external integrations expand. 

Balancing rapid user growth with the need for stable token economics requires continuous adjustments to mining rewards and token supply management, ensuring that immediate participation is sustained alongside long-term network stability.

The Future of Pi Network

Looking forward, Pi Network is set to broaden its user engagement and ecosystem through the transition to an open network. This shift is expected to boost user participation and drive the development of decentralized applications that deliver practical utility. Future enhancements will likely include refining the dynamic mining rate (B) to better align token issuance with real-time network activity and further developing reward components such as the lockup multiplier and future contribution elements. Improved token distribution planning will enhance long-term stability by ensuring predictable supply management. 

Additionally, Pi Network aims to achieve greater interoperability with external blockchains, wallets, and centralized exchanges, paving the way for seamless integration into the broader crypto ecosystem. Strategic partnerships with businesses and developers are anticipated to expand the range of use cases and strengthen the network’s overall functionality. 

Conclusion

Pi Network is a mobile-first blockchain project that rethinks cryptocurrency by making mining accessible and community-driven. It combines a dynamic token model, evolving mining mechanisms, and a phased roadmap, from initial beta testing to a fully integrated Mainnet, to build a decentralized ecosystem where verified users participate in secure, low-resource mining.

As the network evolves, its approach to balancing token distribution, incentivizing diverse contributions, and integrating with external platforms offers a unique model for sustainable growth in the digital currency space. Consider how democratizing access to blockchain technology might reshape not only financial systems but also how communities build and secure decentralized networks.

Frequently Asked Questions (FAQ)

What is Pi Network?

Pi Network is a mobile-first cryptocurrency that lets users mine digital currency via a smartphone app. It is designed to build a decentralized, peer-to-peer ecosystem accessible to everyone without requiring specialized hardware.

How does Pi mining work?

Pi mining is based on daily check-ins through the mobile app. The process uses a dynamic mining formula that starts with a base rate and adds rewards from security circles, referrals, and—on Mainnet—additional components like lockup, app usage, and node operation. This method allows users to earn Pi without energy-intensive computations.

What is the Pi token supply model?

Initially, Pi Network employed an unlimited, dynamic token issuance model to encourage rapid network growth. With the transition to Mainnet, the total supply is capped at 100 billion Pi. The distribution is structured so that 80% is allocated to the community and 20% to the Core Team, which provides predictable token economics and stability.

What is the KYC process for Pi Network?

The Know Your Customer (KYC) process verifies users’ identities to ensure that only real individuals participate in the network. Completing KYC is required to transfer mined Pi to the Mainnet. This process helps prevent fake accounts and maintains the network’s security and integrity.

How do I start mining Pi?

To begin mining, download the Pi Network mobile app, register using your phone number, and start the daily mining check-ins. Building a security circle and inviting referrals can further increase your mining rewards.

Does Pi Network generate revenue from advertisements?

No, Pi Network does not rely on advertisement revenue. Its model focuses on building a decentralized ecosystem through mobile mining and community engagement. The project funds its development and operations through internal mechanisms, token distribution, and user-driven participation rather than external ad income.

How does Pi Network plan to address concerns about centralization?

Pi Network tackles centralization by using a decentralized consensus algorithm based on trust circles and rigorous KYC verification. By distributing mining rewards among verified users and encouraging broad node participation, the network minimizes central control and ensures that decision-making and security are maintained collectively by its community.