Pi Network mainnet launch: What it means for pioneers

What is Pi Network?

Pi Network is a cryptocurrency project that allows users to mine digital currency directly from their mobile devices.

As of January 2025, Pi Network has reportedly amassed over 70 million users worldwide, though the accuracy of this figure remains debated.

Within Pi Network, users — known as “pioneers” — mine Pi, validate transactions and support the ecosystem’s growth. They facilitate peer-to-peer transactions, contribute to decentralized applications (DApps), and play a key role in advancing the project toward its open network launch.

Pi coin mining on mobile

Pi Network offers a unique approach to cryptocurrency mining, enabling users to mine Pi coins directly from their mobile devices without the need for energy-intensive hardware. 

This is achieved through a consensus algorithm adapted from the Stellar Consensus Protocol (SCP), which relies on a trust-based network rather than the energy-consuming proof-of-work (PoW) system. As a result, mining Pi does not drain battery life or require continuous app usage. Users simply tap a button once daily to maintain their mining session.

The mobile mining process is designed to be user-friendly and energy-efficient. After downloading the Pi Network app and creating an account, users can start mining by pressing a button once every 24 hours. 

This action contributes to securing the network and validating transactions without significant battery consumption or data usage. The app does not need to run continuously — background operations ensure that mining continues even when the app is closed.

Pi Network’s mining mechanism is meritocratic, rewarding users based on their contributions to the network. Pioneers can increase their mining rate through several activities:

• Building security circles: Adding trusted members to one’s security circle enhances network security and boosts the mining rate. Each active member can increase the rate by up to 20% of the base rate, with a maximum of five members contributing.
• Inviting new members: Expanding the network by inviting others to join Pi Network not only grows the community but also increases the inviter’s mining rate. Each new member who actively mines adds a bonus of 25% of the base rate to the inviter’s earnings.
• Engaging with Pi apps: Utilizing DApps within the Pi ecosystem contributes to network utility and can further enhance mining rewards.

Did you know? Meritocracy is a political system in which economic goods or political power are vested in individual people based on ability and talent, rather than wealth or social class.

Pi Network’s transition to open mainnet

Pi Network’s transition to open mainnet, scheduled for Feb. 20, 2025, marks the culmination of its multi-phase development from beta and testnet to an enclosed mainnet.

• Beta phase: Launched on March 14, 2019, the beta phase focused on user acquisition and testing the mobile mining application.
• Testnet phase: Initiated on March 14, 2020, this phase involved extensive testing of the blockchain and consensus algorithm, with node operators invited to ensure network stability.
• Enclosed mainnet phase: Beginning in December 2021, the mainnet became live but remained enclosed, with a firewall preventing external connectivity. This period allowed users to complete Know Your Customer (KYC) verification and migrate their Pi to the live mainnet blockchain while the community built applications within the enclosed network.
• Open mainnet phase: Scheduled to launch on Feb. 20, 2025, this phase will remove the existing firewall, enabling external connectivity.

The open mainnet launch is an important step for Pi Network, transforming it from an enclosed ecosystem to an open, interoperable blockchain.

Implications of the open mainnet launch for pioneers

The transition to the open mainnet on Feb. 20, 2025, marks a pivotal moment for Pi Network’s pioneers, introducing several significant changes:

• External transactions: Pioneers will gain the ability to transfer Pi coins to external wallets, facilitating real-world transactions and integration with other blockchain platforms.
• Exchange listings: The open mainnet enables Pi coins to be listed on major cryptocurrency exchanges, increasing liquidity and providing opportunities for trading Pi in open markets.
• Enhanced utility through DApps: With the network’s open status, developers can deploy DApps on the Pi blockchain, expanding the ecosystem and offering pioneers diverse use cases for their Pi coins.
• KYC verification requirement: To participate fully in the open mainnet, pioneers must complete KYC verification, ensuring a secure, compliant environment for all users.

Did you know? Pi Network has faced allegations of being a scam due to its referral-based mining system, which some critics liken to a pyramid scheme.

Pi coin (PI) speculation and market dynamics

As Pi Network approaches its open mainnet launch on Feb. 20, 2025, speculation surrounding the Pi coin’s market value has intensified. 

As of Feb. 19, the Pi coin operates within an enclosed mainnet, restricting external transactions and official exchange listings. Despite this, speculative trading occurs through IOUs on certain platforms, where traders bet on the Pi coin’s future value. These IOU prices have shown stability between $61 and $70, potentially indicating market expectations for the Pi coin’s valuation upon official release.

The impending open mainnet launch is anticipated to significantly influence the Pi coin’s market dynamics. Enabling external wallet transfers and potential listings on major cryptocurrency exchanges could enhance liquidity and accessibility, potentially impacting its market value.

It’s important to note that IOU prices are speculative and may not accurately reflect the Pi coin’s value upon official trading. Investors should exercise caution, conduct thorough research and stay informed.

Pi Network risks for pioneers

While the open mainnet launch is a major milestone, it comes with significant risks for pioneers based on the nature of Pi Network:

1. Inflated user numbers and weak activity: Pi Network claims 60 million-plus users, but blockchain explorers show only 9.11 million wallets. With just 18 million KYC-verified users, real engagement may be lower than advertised.
   ➞ Risk: Overestimated adoption could lead to weak network growth and limited demand.
2. Inflation and value dilution: Pi’s circulating supply has doubled in a year to 5.56 billion, with no clear cap. Continued inflation threatens long-term value.
   ➞ Risk: A flood of supply could crash prices once Pi becomes tradable.
3. Unclear liquidity and exchange uncertainty: Pi’s enclosed mainnet has prevented cashing out. While exchange listings are expected, IOU prices may be unrealistic.
   ➞ Risk: A price crash if speculative traders exit early, leaving most users with devalued Pi.
4. Centralized control: Despite branding itself as decentralized, Pi Network is still controlled by its core team. No independent validators exist yet.
   ➞ Risk: The team can alter rules, restrict transactions or delay features at any time.
5. Privacy and data collection: Mandatory KYC verification raises identity theft risks, and Pi’s ad-driven model suggests monetization of user engagement over blockchain development.
   ➞ Risk: Users may have handed over sensitive data for a platform that prioritizes ad revenue over crypto innovation.

While Pi Network’s transition to open mainnet is an exciting milestone, pioneers should remain cautious, as the project is still evolving and outcomes remain uncertain.

This article does not contain investment advice or recommendations. Every investment and trading move involves risk, and readers should conduct their own research when making a decision.