82.8 Billion Pi Coin Controlled by Core Team, Is Pi Network (PI) Not Decentralized?
Jakarta, Pintu News—Pi Network (PI) is back in the spotlight after the latest data from PiScan revealed that the core team holds 82.8 billion Pi Coin- or 82% of the total supply of 100 billion.
This large concentration of ownership raises serious concerns regarding the decentralization of the project.
Coupled with a much smaller number of validators than other large blockchains, many are beginning to doubt whether Pi Network is truly running as a decentralized crypto ecosystem.
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The Majority of Pi Coin Supply Controlled by Core Team
Data from PiScan shows that 62.8 billion Pi Coins are stored in six major wallets controlled by the core team. An additional 20 billion PI is stored in nearly 10,000 wallets that are not listed but are associated with the core team.
As such, only a small group of people control most of the token supply, which goes against the main principle of cryptocurrencies, which favors decentralization.
Compared to Bitcoin or Ethereum , Pi Coin’s ownership distribution is very unequal. For example, Bitcoin has over 21,000 active nodes, while Ethereum operates over 6,600 nodes, which ensures that decision-making is not centralized to one particular group.
Meanwhile, Pi Network only has 43 active nodes and 3 validators, so the core team has more control of the network.
Read also: Price of 1 Pi Network (PI) in Indonesia Today (3/13/25)
Lack of Transparency Triggers Concerns
In addition to token ownership issues, the Pi Network’s transparency is also questionable. PiScan revealed that analyzing its source code and on-chain data is still difficult due to the limited access given to the public. Without sufficient transparency, it is difficult for the community to audit the security and validity of the systems used by the Pi Network.
The situation is further exacerbated by a surprising privacy policy update, where Pi Network now relies on ChatGPT as part of the Know Your Customer (KYC) process. In the latest policy, they state:
“We use ChatGPT as a trusted AI partner to automate identity verification and enhance security measures. By using our KYC service, users consent to the use of ChatGPT and other AI providers that may be implemented in the future.”
This decision raises important questions about how users’ personal data is managed and the extent of third-party involvement in this KYC process.
Also read: Pi Network Surges 19% on March 12: Pi Day Optimism Fuels Speculation—Could PI Coin Hit $5?
Pi Network’s Popularity Plummets by 88%
Pi Network’s popularity has also drastically declined in these controversies. Data from Google Trends shows that searches related to “Pi Network” have dropped 88% since the mainnet launch on February 20.
On the day of launch, the number of searches peaked at 100, but now only 12 remain, indicating that public interest in the project is waning.
One of the main causes of this disappointment is the long lock-up period that prevents users from freely accessing their assets.
As a result, many users are seeking alternatives by selling their accounts to gain liquidity. This shows that although Pi Network has a large community, trust in the project is starting to erode due to various policies that are considered unfavorable to users.
Conclusion
While the Pi Network (PI) was once considered a revolutionary crypto project with a mobile-based mining concept, recent events have shown high centralization.
With 82% of the total supply controlled by the core team, a very limited number of validators, and a lack of transparency in the system, the project still leaves many questions about its commitment to the principle of decentralization.
In addition, the use of ChatGPT in the KYC process without prior notice further deteriorates the image of this project.
Coupled with its declining popularity, the future of Pi Network is now in question- is it truly a decentralized cryptocurrency, or just a closed system controlled by a few?
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This content aims to enrich readers’ information. Pintu collects this information from various relevant sources and is not influenced by outside parties. Note that an asset’s past performance does not determine its projected future performance. Crypto trading activities have high risk and volatility, always do your own research and use cold cash before investing. All activities of buying and selling bitcoin and other crypto asset investments are the responsibility of the reader.
Reference
- Brave New Coin. 82.8 Billion Pi Coins Under Core Team-Is Pi Network Truly Decentralized?. Accessed March 13, 2025
- Featured Image: Mudrex
