PI Supply Drop! The Pi Network Just Witnessed an Unexpected Supply Shock, Sparking Wild Speculation

The Pi Network just witnessed an unexpected supply shock, sparking wild speculation among Pioneers! With 6.99 billion PI left

Pi Network, the cryptocurrency project that has been steadily gaining attention, experienced a significant shift in its token supply, leaving users in a frenzy of speculation.

As the dust settles, it appears that the persistent rumors of a massive "coin burn" event might be a misinterpretation of a network feature. While the Pi Core Team has yet to announce any deliberate program to burn tokens, Stellar’s protocol, on which Pi’s blockchain is based, does involve the automatic burning of transaction fees to manage inflation. This has been an ongoing process since mainnet launch.

Moreover, the missed KYC deadline (December 30, 2024) might have resulted in the burning of coins from unverified accounts, further reducing the circulating supply.

Now, a post on X (formerly Twitter) is generating buzz by highlighting the dramatic decrease in token supply from 10 billion to 6.99 billion. However, this post seems to be aggregating the collective impact of Stellar’s transaction fee burning and unverified account coins over time, creating the impression of a sudden, massive burn event.

The post has sparked lively debate among users, who are keenly following the implications of this reduced supply for the token’s price.

With the token price already showing signs of recovery after hitting lows of $0.04, this development could be a turning point for Pi, which is known for its large community and unique features.

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A recent post on X (formerly Twitter) claims that Pi Network has seen a massive reduction in its token supply, sparking a frenzy among users.

As the dust settles on 2024, it appears that persistent rumors of a large-scale "coin burn" event might be a misinterpretation of a network feature. While the Pi Core Team has yet to announce any official program to deliberately burn tokens, Stellar’s protocol, on which Pi’s blockchain is based, does involve the automatic burning of transaction fees to manage inflation. This has been an enterprise since mainnet launch.

"Transaction fees get burned on Stellar to mitigate inflation, a crucial aspect of Stellar’s economic model. Since Pi's mainnet is based on Stellar, this would also apply to Pi tokens," a poster explained.

Furthermore, the unverified accounts that missed the KYC deadline (December 30, 2024) might have had their coins burned, reducing the circulating supply even more. A user pointed out that the remaining balance for unverified accounts after the deadline passed is zero.

Now, a post on X is garnering attention for highlighting this reduction in token supply from 10 billion to 6.99 billion. However, this post seems to be aggregating the cumulative effect of Stellar’s transaction fee burning and unverified account coins over time, creating the impression of a sudden, massive burn event.

"They burned 3 billion coins. Isn't it a huge number? But still, there are 6.99 billion coins left, and the price is still very low, less than $0.08. I wonder what the value will be when the coins are reduced to 1 billion," one user remarked.

This post has sparked lively debate among users, who are keenly following the implications of this reduced supply for the token’s price.

"This is huge! I'm surprised they're able to burn through the coins this quickly," said another user.

"Maybe this time next year, the price will be $1 if the coin supply continues to decrease at this rate."

The post has been viewed over 2 million times and has received over 10,000 likes since it was shared on December 31.

The post comes as the token price has shown signs of recovery after hitting lows of $0.04 earlier in December. The price is currently trading at $0.07, according to data from CoinMarketCap.

With the community eagerly awaiting the next chapter for Pi, which is known for its large user base and unique features, this development could be a turning point for the cryptocurrency.