Few crypto projects have sparked as much debate as Pi Network. For some, it's a bold experiment in mobile-first crypto adoption. An app-powered gateway to a decentralized future. For others, it's a cleverly disguised pyramid scheme built on social referrals, vague promises, and delayed delivery.
In a space known for extremes, Pi Network may be one of the most polarizing. It claims over 60 million users, a live Open Mainnet, and ambitions to build a new digital economy. However, critics continue to question its centralized control, lack of token liquidity, and reliance on a trust graph model that seems to contradict the fundamentals of blockchain design.
So what is Pi, really? A quiet revolution in user-first crypto infrastructure? A sophisticated scheme with social engagement as its currency? Or something murkier—stuck somewhere between innovation and opportunism?
This article takes a clear-eyed look at Pi Network to assess its legitimacy, security model, and investment risks. We'll examine:
By the end, you'll have the context to decide if Pi is a meaningful experiment worth watching, or just another project fueled more by hype than delivery.
Pi Network is a Layer 1 blockchain built for mobile users. It positions itself within the growing category of mobile-first crypto platforms by offering a lightweight, low-barrier mining model that works entirely through smartphones—no advanced hardware or high energy consumption required.
At the center of this ecosystem is Pi Coin (PI), the network’s native currency. Users earn it by contributing to the network’s growth, security, and app usage. Pi’s long-term goal is to support a decentralized economy powered by everyday users, not professional miners or early whales.
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Mobile-First Mining and “Social Security”
The standout feature of Pi Network is its approach to mining. Instead of relying on energy-intensive calculations like Bitcoin, Pi introduced a social mining model. Users mine Pi by simply tapping a button once every 24 hours and securing their “Security Circle," a group of trusted individuals who contribute to the network’s safety.
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Participation in the network also includes inviting others to join and forming Referral Teams. This process gamifies network growth and keeps users engaged without technical friction. The mining mechanism is intentionally light to encourage broad, global participation, even in areas where hardware or stable electricity is limited.
Network Purpose and Ecosystem Vision
Pi Network’s stated mission is to create an inclusive, app-driven ecosystem that functions as a crypto-native online economy. Users earn Pi not just through mining but also by interacting with apps on the Pi Browser.
The network envisions a system where:
Everything—from mining rewards to DApp usage incentives—is designed to keep Pi circulating within its own ecosystem rather than being dumped for external value. This internal focus is a key differentiator, though it also limits Pi’s external liquidity (as we’ll explore later).
How Pi Coin Is Mined
In its early stages, Pi mining was simple and mostly symbolic. Users earned Pi based on:
The global mining rate halved at network milestones (e.g., every time the user count crossed 10 million), creating scarcity over time.
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Mainnet Phase
Once Pi moved to the Mainnet, mining became more dynamic and contribution-based. The new formula rewards a broader range of activities:
Importantly, you must be actively mining to receive rewards. If you're not logged in and mining, your base rate drops to zero.
The systemwide mining rate (B) now adjusts in real time based on overall network activity and a fixed yearly supply cap. This keeps inflation in check while rewarding the most engaged users.
Consensus and Token Structure
Pi Network runs a modified version of the Stellar Consensus Protocol (SCP). SCP uses federated trust—users validate transactions through their trusted circles. This allows fast, energy-efficient consensus, though it also introduces questions about decentralization (covered in the next section).
Pi Network positions itself as a more inclusive alternative to traditional crypto networks, with a strong focus on participation over speculation. But accessibility alone doesn’t guarantee legitimacy, which is what we’ll assess in the next section.
Pi Network was launched on March 14, 2019 (Pi Day) by a group of Stanford graduates—Dr. Nicolas Kokkalis, Dr. Chengdiao Fan, and Vincent McPhillip. The idea was straightforward: make cryptocurrency mining possible on smartphones, without relying on specialized hardware or high electricity costs.
From the beginning, the team pitched Pi as a mobile-first blockchain focused on accessibility and long-term ecosystem development. Its native asset, Pi Coin, would serve as the backbone for user incentives and application activity.
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Timeline and Key Milestones
Community and Ecosystem Development
The number of active users of the Pi network has dropped from its high to a little over 35 million now, based on a Bitget article. However, a Reddit user claims that far fewer users hold more than a thousand Pi coins, valued at $1,200 as of May 2025 rates. The project has run hackathons, developer grants, and AMAs to encourage app building and feedback loops.
Activity is primarily concentrated in regions like Asia, Africa, and Latin America, where mobile-native tools are often the only practical entry point into crypto. While the DApp ecosystem is still in its early stages, Pi’s user engagement remains one of the network’s most consistent drivers.
While Pi Network encourages users to run full nodes on desktops to participate in consensus, reports suggest a different reality:
A CNN report from January 2025 indicates that all mainnet nodes are operated centrally by the Pi Network team, undermining the decentralized ethos of blockchain technology.
KYC Requirements and Privacy Concerns
Pi Network mandates Know Your Customer (KYC) verification for users to access their mined Pi tokens. This requirement introduces several issues:
Token Utility and Exchange Listings
The utility of the Pi token is currently limited:
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Additional Concerns
Several other red flags have been identified:
Industry Expert Opinions
Prominent figures in the cryptocurrency industry have expressed skepticism about Pi Network:
Pi Network takes a layered approach to security, combining cryptographic standards, mobile wallet protections, and a trust-based consensus mechanism. However, much of its infrastructure still hinges on centralization, raising ongoing concerns about user autonomy and systemic risk.
Pi Network runs on a custom blockchain built using the Stellar Consensus Protocol (SCP), a variant of the Federated Byzantine Agreement (FBA). Instead of traditional PoW or PoS models, consensus is reached through Security Circles—small trust groups that form a global trust graph. This model is designed to prevent Sybil attacks and enable mobile-friendly mining with low resource demands.
The blockchain architecture includes:
While Pi claims to support thousands of community-run nodes, accusations that all mainnet validators are operated by the Pi Core Team undermine the decentralization claim, suggesting that consensus is currently fully permissioned.
The Pi digital wallet is mobile-native and locally stores private keys on the user’s device, supported by secure enclaves like Apple’s TEE. Users back up their wallets using encrypted recovery phrases, and transaction signing happens locally before broadcasting.
Security features include:
However, KYC is mandatory to access Mainnet tokens, linking wallets to verified identities. While private keys remain device-based, user identity data is stored on centralized servers. Past reports of unencrypted KYC transmission (2021) raised alarm, and though improvements have been promised, server-side transparency is still lacking.
Users can enhance their security by following basic precautions:
Running a Pi Node adds another layer of transparency for those more technical, though current node roles are limited.
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Pi’s infrastructure combines strong cryptographic techniques with mobile usability, but much of the system still relies on centralized control over consensus and KYC data. This reduces user sovereignty and makes Pi’s security model more custodial than truly decentralized.
With over 60 million users worldwide, Pi Network’s community is one of its most prominent assets—and also one of its most polarizing features. Community-driven growth has played a central role in shaping both the project’s legitimacy and public perception.
Pi’s expansion has been fueled by its referral-based mining system and Security Circles, where users vouch for trusted peers to form a trust graph. This not only reinforces the network’s consensus model but also creates a self-validating social structure.
Governance includes community voting and proposal submission, with Pi soliciting feedback through its app. Events like hackathons and developer grants have helped foster early DApp development, creating the sense of a grassroots ecosystem.
That said, this same structure draws criticism for being overly reliant on user recruitment, with some likening it to a pyramid scheme. While defenders point to active engagement and global reach, critics question whether growth alone constitutes value.
Positive feedback tends to focus on accessibility. Users appreciate Pi’s mobile mining experience, which requires no capital investment and minimal technical effort. Reddit posts and Trustpilot reviews cite the platform’s inclusivity and low barrier to entry as standout features. Some users are hopeful about recent progress, including Mainnet migration and Chainlink integration.
But the negative sentiment remains strong:
Reviews on Reddit are sharply divided. r/PiNetwork often acts as a pro-Pi echo chamber, while r/CryptoCurrency and r/phinvest are more skeptical, flagging MLM characteristics and questioning transparency. Trustpilot scores hover around 4.2/5, but the sample size is small and often shallow.
Pi’s Security Circle architecture and KYC enforcement are framed as user-led security mechanisms. Enthusiasts argue that community-run nodes, merchant adoption, and SDK-powered apps will eventually build real value. Others remain unconvinced, pointing to centralized infrastructure and speculative valuation.
In short, Pi’s community is highly engaged, often defensive, and central to the project’s identity. However, the same mechanisms that enable growth also raise concerns about transparency, utility, and long-term sustainability. Until Pi delivers tangible external utility, its legitimacy will remain contested, regardless of community size.
As of May 2025, Pi Network has completed its transition to Open Mainnet and is shifting focus toward ecosystem expansion, utility-building, and governance reform. Future progress will depend on whether the project can convert its large user base into meaningful usage, infrastructure, and value.
The Pi Core Team launched Pi Network Ventures, a $100 million program in Pi and USD, to fund businesses building real-world applications. This marks a strategic push to anchor Pi in commerce and practical use. The team has emphasized this direction in recent communications, including X posts teasing new tools and ecosystem announcements.
Integration with Chainlink’s decentralized oracles, announced in May 2025, positions Pi to support more complex DApps and data-driven smart contracts. Meanwhile, the Pi App Suite—including the Pi Browser, Wallet, App Store, and the Fireside Forum—lays the groundwork for user-facing applications. Community-driven initiatives like Pi Commerce continue to scale, with over 125,000 merchants reportedly accepting Pi.
However, delays remain a concern. The community has voiced frustration over vague timelines for exchange listings and DApp rollouts. While Roadmap V1 listed past milestones and roadmap V2 was expected in late 2023, it was not delivered on time. This has fueled skepticism, even among long-time users.
The Pi Core Team claims to be progressing toward decentralization, citing planned governance mechanisms and tools like PiNet and the Developer Portal. Pi Network Ventures is also expected to support community-led projects and governance initiatives. A planned Pi Foundation will manage 10% of the total token supply for ecosystem development.
Expectations on Reddit and X remain high. Some users hope for “Robin Hood-ification of crypto,” while others call for clear voting rights, transparent node distribution, and actual transitions away from core-team-led execution.
After years of development and hype, Pi Network’s legitimacy remains a divisive topic. Supporters point to its massive user base, mobile-first design, and recent moves toward Mainnet functionality. Critics highlight a disconnect between the project’s promises and its current reality.
Much of the skepticism stems from centralized decision-making, the team’s ongoing control over Mainnet infrastructure, and a referral-based model that emphasizes user acquisition over proven utility. While the Pi ecosystem is growing—on paper—real-world use, decentralization, and meaningful token liquidity are still lacking.
That said, participating in Pi doesn’t require financial investment. For those curious about the project, the barrier to entry is low. You can explore its features, experiment with apps, and follow its progress without risking capital—just time and personal data.
There is potential for Pi to evolve into something more aligned with crypto-native principles, but so far, the team’s roadmap and governance plans remain vague. Until the project delivers on decentralization, open infrastructure, and external integration, it’s difficult to treat Pi as a fully trustless or blockchain-native platform.
For now, Pi Network sits somewhere between ambition and execution—not an obvious scam, but not yet the revolution it claims to be. As always, approach with caution, verify information through official sources, and don’t mistake hype for product.
Pi Coin uses a lightweight, mobile-first mining model where users tap a button daily to “mine” Pi. Unlike Bitcoin or Ethereum, there’s no energy-intensive computation or specialized hardware involved. Instead, Pi mining tracks user engagement and social contributions through Security Circles and referrals. It’s more about network participation than transaction validation, making it accessible but less technically robust.
Pi Network follows standard cryptographic practices like public/private key encryption, SHA3-512 hashing, and AES-256 for data protection. However, its centralized control over node infrastructure and mandatory KYC requirements contrast with the permissionless, decentralized security models of networks like Ethereum or Bitcoin. Pi’s architecture leans more toward custodial trust than full user sovereignty.
Pi wallets are mobile-native, and private keys are stored locally on the user’s device. New users should:
Pi does not currently support hardware wallets or interoperability with third-party wallets, limiting cold storage options.
Key factors include:
Investors should also monitor legal developments affecting non-custodial vs. custodial crypto ecosystems, as Pi leans more custodial in structure.
Pi’s community is central to its identity. Users build Security Circles, run testnet nodes, and participate in governance discussions. This engagement supports security through trust-based validation and drives ecosystem growth via dApp building and merchant adoption. However, the project’s centralized infrastructure limits how much influence the community can exert until governance structures become more transparent and decentralized.
My interest in financial markets and computers fueled my curiosity about blockchain technology. I’m interested in DeFi, L1s, L2s, rollups, and cryptoeconomics and how these innovations shape the blockchain industry as a growing global product.
Disclaimer: These are the writer’s opinions and should not be considered investment advice. Readers should do their own research.
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