Pi Network Criticized for Centralization as Core Team Retains 82.8B Pi

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• Recent analyses have shed light on the distribution of Pi Coin within the Pi Network, raising concerns about the network’s decentralization.
• The total supply of Pi Coin is fixed at 100 billion, with the Pi Core Team holding 20 billion Pi reserved for development, operations, and ecosystem growth.

Recent data from PiScan indicates that the Pi Network’s core team holds a substantial portion of the total Pi Coin (PI) supply, raising questions about the project’s decentralization.

The core team reportedly controls approximately 62.8 billion PI across six wallets, with an additional 20 billion PI in around 10,000 unlisted wallets associated with the team. This amounts to a total of 82.8 billion PI, representing a big share of the network’s fixed maximum supply of 100 billion PI.

While such concentration may be necessary during the early stages of a network’s development, it also raises significant concerns about the project’s future decentralization. The limited distribution of PI could impact the network’s resilience and the community’s trust in its decentralized nature.

Beyond token distribution, the Pi Network’s infrastructure also presents centralization challenges. Reports indicate that the network operates with a limited number of active nodes and validators. The Pi Core Team operates three Validator Nodes, validator1, validator2, and validator3, a structure similar to the Stellar Development Foundation’s approach with nodes like SDF1, SDF2, and SDF3.

For context, established Layer 1 networks like Bitcoin (BTC) and Ethereum (ETH) boast significantly higher node counts, enhancing their decentralization and security. Bitcoin operates with over 21,000 nodes, while Ethereum has over 6,600 nodes. This limited number of nodes and validators in PI  means that control of the network is concentrated in the hands of a few entities, making the network more centralized than its more established counterparts.

AI Integration in KYC and Privacy Concerns

In its 2025 privacy policy update, Pi Network introduced artificial intelligence (AI) into its Know Your Customer (KYC) process, aiming to enhance efficiency and security. The updated policy states:

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.

While AI can streamline identity verification and reduce manual errors, it also raises concerns about data privacy and the potential for misuse of personal information.

The community has continuously highlighted technical difficulties during the mainnet migration, with many users expressing frustration over delays and complications in transferring their coins to the mainnet. Despite extensions to the KYC and migration deadlines, some users continue to report issues, leading to dissatisfaction within the community. 

Additionally, the extended lockup periods and limited immediate access to tokens have led some users to consider selling their accounts. This dissatisfaction has contributed to a decline in Pi Network’s popularity since the mainnet launch on February 20.

In response to these challenges, Pi Network has extended the KYC and mainnet migration deadlines multiple times, with the latest extension set to 8:00 AM UTC on March 14, 2025. This extension aims to provide additional time for users to complete their verification and migration processes, ensuring inclusivity and fairness within the ecosystem.

In the last 24 hours, Pi’s native token has been bullish, gaining 19.71% to now trade at $1.62. This sets it apart from its all-time high of $2.98 by 45.66%.