Pi Network, the most-used blockchain project with millions of users worldwide, has now officially announced its new tokenomics model.
Pi Network, the most-used blockchain project with millions of users globally, has finally announced its new tokenomics model. This framework, which is transparent, equitable, and community-driven, introduces a 100 billion Pi token total supply, showcasing an initiative toward collective growth and fairness.
The project, which has been in development for years, faced criticism for its opaque tokenomics and the potential for a large token supply to quickly create selling pressure. However, the new model, which is being implemented as part of the Mainnet launch, directly counters these issues.
This new structure is designed to quickly process Mainnet migration without allowing any entity to reap undue benefits. It aligns with Pi Network's broader goal of making blockchain sustainable and inclusive.
At the heart of the model is a novel distribution mechanism. In contrast to traditional models, the distribution of all tokens is directly correlated with the speed of migration of Pi users, who are called Pioneers. If the users migrate slowly, the availability of tokens for the Foundation, Core Team, and liquidity pools also move at the same rate, promoting fairness and transparency.
Furthermore, while 100 billion Pi tokens were pre-mined, their usability is subject to how many of those have moved to the Mainnet. Pi Network approximates this through the 'Effective Total Supply,' which is calculated using the formula:
This proportional unlock ensures that no stakeholder can "front-run" the community. It prevents token dumping, manipulation, or early access issues, which are common problems in the crypto space.
In other news, Pailot, a company focused on enabling cryptocurrency use cases, has announced a collaboration with the Pi Core Team to prepare for Pi's Mainnet listing. Pailot will be providing its technology and expertise to help ensure a smooth and successful transition for Pi.
This collaboration signifies growing ecosystem support and increasing momentum for real-world adoption of the Pi cryptocurrency.
