The Pi Network Community Actively Monitors Signs of Possible Token Burns Despite No Confirmation from the Team

The Pi Network community actively monitors signs of possible token burns despite no confirmation from the team. Several ecosystem mechanisms contribute to reducing circulating supply

The Pi Network community is actively monitoring signs of possible token burns despite the lack of confirmation from the team.

As reported by Bravenewcoin, several ecosystem mechanisms contribute to reducing circulating supply. Transaction fees are permanently removed from circulation, burning around 3,000 to 4,000 PI tokens daily.

Furthermore, unverified accounts failing KYC verification may decrease the total supply. These ongoing reductions indicate that, even without an official event, the network operates with deflationary tendencies.

Despite no mention of a burning event in the official announcement for the mainnet transition, community members have spotted technical signs and analyzed data to estimate the scale of token burns.

According to data from early March, around 528,671 PI tokens have been permanently removed from circulation through transaction fees. Transaction fees on the Pi blockchain are not paid to miners but rather burned, effectively decreasing the total supply.

Unverified accounts also contribute to reducing the circulating supply. While the initial reports focused on transaction fees, a post on X (formerly Twitter) from December 30 highlighted that unverified accounts will have their PI tokens burned.

This statement, allegedly from a member of the Pi team, emphasizes the importance of completing KYC verification to avoid having one’s PI tokens burned.

After the transition to the mainnet on February 20, the know-your-customer process became a necessary step. According to a post on X, a user who missed the KYC grace period had their tokens burned, reducing the total supply to 6.99B.

After the transition to the mainnet on February 20, the know-your-customer process became a necessary step. According to a post on X, a user who missed the KYC grace period had their tokens burned, reducing the total supply to 6.99B.

According to Coinmarketcap data, PI coin is now trading at $1.15, marking a nearly 23% decline over the past week.

This downturn can be attributed to both external factors like global economic turmoil and internal factors like the recent token unlocks. On March 17, 23.1 million PI was unlocked, now equal to $26.565 million. Additionally, 23.4 million PI is set to be unlocked on March 21, valued at $26.91. Such large token releases often push the price down as traders tend to sell when there is a sudden influx of tokens.

However, despite the bearish trend, PI’s price prediction shows that this coin could bounce back. One factor driving this optimistic view is the PI’s increasing adoption, which has recently skyrocketed especially in China. Based on various reports, currently some restaurants and retail businesses are accepting PI as payment. Such utility and real-world use cases could increase the adoption even further and help the coin’s long-term growth.

According to PropTradePros, PI needs to remain above the $1.05 support to reclaim its bullish momentum. Moreover, a break of the $1.37 resistance level is also necessary for further price increases. The coin also has major psychological support at $1.10, which can push PI to a trend reversal. Such a reversal is likely to send the price above $1.50 and eventually even $2.0.

Looking ahead, PI’s price prediction will depend on sustaining key support levels and growth in adoption.

If the network continues to reduce supply through transaction burns and inactive accounts, its long-term value could strengthen. Real-world utility could also drive PI’s recovery, as the real-world demand may help mitigate inflationary pressures from token unlocks.