Pi Network Core Team Wallets Hold 82% of the Total 100 Billion Supply

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.

The latest figures from PiScan show that six wallets, which are said to be controlled by the core team, hold a total of 62.8 billion Pi Coins. In addition, nearly 10,000 unlisted wallets linked to the team members hold about 20 billion PI. This sums up to more than 82% of the total 100 billion supply.

This extreme token concentration, in a small group of insiders, leaves little room for true decentralization, which is a core tenet of crypto projects.

When compared to more established blockchain projects, Pi Network’s setup appears heavily centralized. It currently operates with only 43 nodes and three validators worldwide. In contrast, Bitcoin has more than 21,000 nodes, Ethereum has more than 6,600, and Solana has around 4,800.

With so few validators, the 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

Pi Network’s Transparency Raises Doubts — ChatGPT in KYC

Apart from the overwhelming token concentration, Pi Network’s transparency has also been questioned.

Analyzing Pi Network's source code and on-chain data is currently challenging due to its incomplete openness.

This is a snapshot of what we've managed to decipher so far:

* The Pi Node serves as the primary node in the network, responsible for broadcasting transactions and maintaining the blockchain.

* Pi Chain handles transaction batches and relays them to the Node for inclusion in the next block.

* Smart contracts are written in the R programming language and deployed on the Pi Node.

* The cryptocurrency is named PI, with a total supply of 100 billion tokens.

* The coin is divisible up to 18 decimal places.

* Transaction fees are set at 0.001 PI, and the minimum transaction amount is 0.01 PI.

* The network uses the PoR consensus algorithm, similar to the Flow blockchain.

* The average block time is 10 seconds.

On the other hand, Pi Network recently updated its privacy policy, which now discloses the use of ChatGPT for its Know Your Customer (KYC) process. This change was not mentioned in earlier versions of the policy.

The updated policy, dated July 17, 2023, introduces a new section titled "Artificial Intelligence and Third-Party Services." This section details the integration of AI technologies, including ChatGPT, to enhance security and user experience.

"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.

According to the policy, user data may be collected, used, stored, and disclosed in accordance with applicable privacy laws in the United States, where Pi Network is based.

The policy also mentions that user data may be transferred to and processed in other countries, which may have different data protection laws.

Google Trends Show 88% Drop in Pi Network’s Popularity

Meanwhile, 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 and the difficulties encountered during the mainnet launch, have decided to sell their accounts.

This wave of discontent has been reflected in Pi Network’s declining popularity.

As seen from Google Trends data, there has been 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.

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