Pi Network’s Core Team Controls a Staggering 82.8 Billion Pi Coins

This overwhelming concentration of tokens has sparked concerns over decentralization, as such control gives the core team significant influence over the network's future.

According to blockchain analytics platform PiScan, the core team of Pi Network controls an overwhelming amount of tokens, holding 82.8 billion Pi Coins out of the total 100 billion supply.

This extreme concentration of tokens has sparked concerns over decentralization, especially with such control giving the core team significant influence over the network’s future. While early-stage projects often retain large allocations, Pi Network’s figures are notably high.

Breaking down the numbers, the team holds 62.8 billion Pi across six wallets, while another 20 billion PI is stored in approximately 10,000 unlisted wallets linked to the team. Such heavy concentration raises questions about whether the network can ever truly become decentralized.

A Small Validator Set Strengthens Centralization Worries

Beyond token distribution, Pi Network operates with just 43 nodes and three validators worldwide. Compared to major Layer 1 networks—Bitcoin’s 21,000 nodes, Ethereum’s 6,600, and Solana’s 4,800—Pi Network’s setup appears highly centralized.

Fewer nodes mean more control remains in the hands of a select few, making it easier to manipulate the network. It is no wonder that interest in the coin has dropped.

According to PSCAN, the core team of _Pi Network_ still holds a staggering amount of tokens—82.8 billion _Pi Coins_ out of the total 100 billion supply. This extreme concentration of tokens has sparked concerns over decentralization.

Breaking down the numbers further, the team holds 62.8 billion Pi across six wallets, and another 20 billion PI is stored in approximately 10,000 unlisted wallets linked to the team. Such heavy concentration raises questions about whether the network can ever truly become decentralized.

Compared to major Layer 1 networks—Bitcoin’s 21,000 nodes, Ethereum’s 6,600, and Solana’s 4,800—Pi Network operates with a small setup of 43 nodes and three validators worldwide.

This setup appears highly centralized, especially in the early stages of the project. A small validator set could lead to more control being concentrated in the hands of a select few, making it easier to manipulate the network. Additionally, fewer nodes could mean that the network is more vulnerable to attacks.

Moreover, PiScan mentioned that Pi Network’s source code and on-chain data are difficult to analyze due to a lack of openness. This lack of transparency has added another layer of skepticism around the project’s long-term viability.

ChatGPT in KYC Process Sparks Privacy Concerns

The Pi Network’s latest privacy update has introduced another point of contention. The project recently revealed that it uses ChatGPT to automate its Know Your Customer (KYC) process.

While AI-driven identity verification is becoming more common, this move was not previously disclosed, leaving many users questioning how their data is being handled.

According to the updated policy, Pi Network users must consent to their identity data being processed by ChatGPT and potentially other AI providers in the future. The use of AI in KYC adds complexity to data security and transparency, further intensifying privacy concerns.

This analysis indicates that the project is struggling to maintain user interest despite its efforts to expand. As the project faces criticism and users become frustrated, it remains to be seen how Pi Network will address these issues and continue its journey in the cryptocurrency landscape.