82.8 Billion Pi Coins Under Core Team—Is Pi Network Truly Decentralized?

Pi core team wallets hold 82% of the total 100 billion supply | Source: PiScan

The latest figures show that 62.8 billion Pi Coins are stored across six wallets controlled by the core team. An additional 20 billion PI is held in nearly 10,000 unlisted wallets linked to the team. This means that just a small group of insiders controls the majority of the supply, leaving little room for true decentralization.

Pi Network’s setup also appears heavily centralized when compared to more established blockchain projects. It currently operates with only 43 nodes and three validators worldwide. In contrast, Bitcoin has over 21,000 nodes, Ethereum has more than 6,600, and Solana has around 4,800. With so few validators, decision-making power is limited to a select few, making the network significantly more centralized than its competitors.

Pi Network Mainnet currently has a total of 11,475,842 Mainnet wallets and 43 active Super Nodes | Source: Pi Network VietNames

Apart from the overwhelming token concentration, Pi Network’s transparency has also been questioned. PiScan, a blockchain tracking platform, pointed out that analyzing the network’s source code and on-chain data is difficult due to its incomplete openness.

“Analyzing Pi Network’s source code and on-chain data is currently challenging due to its incomplete openness,” PiScan stated in a post on X.

Adding to concerns, Pi Network recently updated its privacy policy, revealing the use of ChatGPT for its Know Your Customer (KYC) process. This change was not mentioned in earlier versions of the policy, raising eyebrows about data privacy and third-party involvement. The updated policy states:

“We use ChatGPT, as a trusted AI partner, to automate identity verification and enhance security measures. By using our KYC services, users consent to the use of ChatGPT, and other AI providers that may be later implemented, as part of our KYC process.” 

The introduction of artificial intelligence into identity verification adds another layer of uncertainty regarding how user data is processed and stored.

Dissatisfaction among users has been on the rise, especially due to long token lockup periods and technical difficulties during the mainnet migration. Many users, frustrated by the lack of immediate access to their tokens, have resorted to selling their accounts in search of liquidity.

This wave of discontent has been reflected in Pi Network’s declining popularity. Google Trends data indicates a sharp drop in search interest for “Pi Network” since the mainnet launch on February 20. On the launch day, the search interest peaked at 100. However, as of now, that number has plummeted to just 12, marking a significant decline in user engagement.

88% Drop in Pi Network’s Popularity | Source: Google Trends