What is Pi Network (Pi): A Beginner’s Guide

Pi Network is a mobile-first cryptocurrency project that lets you earn Pi coins directly from your phone, without needing expensive equipment or using a lot of electricity. It runs on a mobile app and uses a system called the Stellar Federated Byzantine Agreement (FBA), which relies on trusted user connections instead of powerful computers. The idea is to make crypto mining easy and accessible for everyone.

If you’ve searched what is Pi Network or wanted Pi coin explained for beginners, you’re not alone. With millions of users, it’s one of the most popular crypto apps in the world. In February 2025, Pi moved from a closed testing phase to its Open Mainnet, which means users can now transfer Pi to external wallets and some exchanges.

In this detailed Pi Network overview, we’ll explain how Pi crypto works, who created it, what makes it different from other cryptocurrencies, and what’s next for the project. Whether you’re already mining Pi or just curious about Pi Network explained, this guide has you covered.

Pi Network Review: Summary

In this guide, we’ll break down how the system works, what the Pi Coin is used for, how the tokenomics are set up, and where the project stands today. We’ll also explain the different roles users can play, from everyday miners to node operators, and look at the bigger vision Pi’s team is aiming for.

We didn’t ignore the risks either. From delays in mainnet progress to questions around centralization and regulation, there’s a lot to weigh up. Our goal is to give a full, honest view, so whether you’re already using the app or just hearing about Pi for the first time, you know exactly where things stand: from Pi Network price prediction to the best Pi Network wallets, we have got you covered.

What is Pi Network (Pi)?

Pi Network is a crypto project built around a simple but ambitious idea: let anyone mine cryptocurrency without needing a fancy computer or racks of hardware. Instead, all you need is a smartphone. Mining Pi is done through a mobile app using the Stellar Consensus Protocol (SCP), which doesn’t chew through energy like Bitcoin mining. The goal is to make cryptocurrency participation accessible to regular people, not just tech-savvy miners or early adopters.

Once you’re in the app, you become a “Pioneer,” someone who checks in daily to mine Pi coins. There’s also a bit of a social twist; users are encouraged to form “Security Circles” with people they trust. It’s not just for fun; these circles help secure the network through trust-based validation.

At its core, Pi Network is trying to make crypto less intimidating and more usable. There is no steep learning curve or huge financial barrier, just a mobile app and a bit of daily engagement to get started.

History of Pi Crypto

Pi Network’s development has progressed through several key phases since its inception:

1. Beta Phase (March 14, 2019 – March 2020): The project officially launched on Pi Day (March 14, 2019), introducing its mobile mining app to the public. During this phase, the focus was on building a user base and refining the app’s functionality.

2. Testnet Phase (March 2020 – December 2021): On March 14, 2020, Pi Network initiated its Testnet phase, deploying a blockchain to test the network’s stability and scalability. This phase allowed developers to identify and address potential issues before the mainnet launch.

3. Enclosed Mainnet Phase (December 28, 2021 – February 20, 2025): The Enclosed Mainnet was launched on December 28, 2021, marking the beginning of the Mainnet phase. During this period, the network operated in a restricted environment, allowing users to migrate their Pi balances to the mainnet while preventing external transactions. This approach aimed to enhance security and build a robust ecosystem before full public access.

4. Open Mainnet Launch (February 20, 2025): Pi Network transitioned to an open mainnet on February 20, 2025, removing restrictions and enabling external connectivity. This milestone allowed Pi coins to be traded on public exchanges and used in various applications, marking a significant step toward realizing the project’s vision of a decentralized digital economy.

Throughout its development, Pi Network has emphasized community engagement, accessibility, and the gradual implementation of features to ensure a secure and user-friendly platform. The project’s phased approach reflects its commitment to building a sustainable and inclusive cryptocurrency ecosystem.

About the Pi Network Team

Pi Network is being developed by a team of over 35 core members spread across the globe. The main base is in Silicon Valley, but the team also includes talent from the US, Europe, and Asia. It’s a pretty mixed bunch: computer scientists, engineers, social science researchers, and product designers, all working together to build something that feels less like crypto-for-geeks and more like crypto-for-everyone.

Main figures in the Pi Network team include Dr. Nicolas Kokkalis (left) and Dr. Chengdiao Fan (right):

The big goal? Build a digital currency platform that’s actually usable by normal people, not just folks who live and breathe code. The team’s approach is less about hype and more about creating real tools for everyday users.

Who is the Founder of the Pi Network Project?

Pi Network was started by Dr. Nicolas Kokkalis, Dr. Chengdiao Fan, and Vincent McPhillip. Each of them brought a different perspective to the table.

Together, they set out to build a crypto project that doesn’t feel like a closed club. Their aim was to let anyone with a phone get involved, without needing technical skills or expensive gear. It’s a pretty ambitious idea, but the team has always leaned into making things simple and accessible first.

Vision of the Pi Network Blockchain Project

Pi Network wants to build something bigger than just another crypto token. The goal is to create the world’s most inclusive peer-to-peer ecosystem, powered by a digital currency that anyone with a phone can mine without expensive or complicated mining setups. It’s not just about giving people coins, it’s about letting them actually use those coins in a real community-driven economy.

Instead of catering to a small group of early adopters or technical experts, Pi Network is focused on building a decentralized platform that feels straightforward and approachable. It uses the Stellar Consensus Protocol, which skips the energy-hungry mining process and keeps things lightweight. That alone makes it easier for more people to get involved.

The big picture? Pi Network isn’t trying to be another coin that just bounces around exchanges. The long-term vision is about utility, making it possible for users to actually buy, sell, and trade in a way that feels natural and useful. The idea is to turn Pi into something people can rely on in everyday life, not just hold onto and hope it goes up in value.

What Problems Does Pi Network Solve?

Pi Network is trying to fix a few of the biggest issues that keep regular people out of crypto:

By focusing on these areas, Pi Network is trying to make crypto feel less exclusive and more practical. It’s not perfect, but it’s clearly aiming to push things in a direction where more people can genuinely take part.

Pi Network Tokenomics

Pi Network’s tokenomics are built with everyday users in mind. There was no flashy coin launch or sudden flood of tokens into the market. Instead, the project went with a slow-and-steady approach, letting the supply grow alongside the community. The whole idea is to keep things fair, flexible, and grounded in actual use. Below, we explain how Pi coins are split up, what they’re used for, and how network control is expected to evolve over time.

Pi Coin Supply

There’s a maximum supply of 100 billion Pi coins. That sounds like a lot, but it’s spread out in a way that supports long-term growth while keeping things fair:

• 65% (65 billion Pi): Set aside for the community. This goes to users who mine, refer others, or help the network by running nodes.
• 20% (20 billion Pi): Reserved for the Pi Core Team. These are the folks building and maintaining the whole system. Their rewards are locked and released gradually, so they stay committed long-term.
• 10% (10 billion Pi): Saved for the Foundation. This pool funds community projects, dApps, and anything else that helps grow the Pi ecosystem.
• 5% (5 billion Pi): Kept for liquidity. That just means making sure there’s enough Pi available for transactions to go smoothly.

The system is designed to keep things fair and flexible, with most of the maximum supply of Pi allocated to the Pi community. The supply will grow as more users join and move their tokens to the Mainnet.

Pi Coin Distribution & Allocation

How Pi coins are distributed matters just as much as the number of them. Here’s the breakdown:

As of May 2025, more than 7.1 billion Pi tokens had been migrated to the Mainnet. That number continues to climb as more users complete KYC and unlock their balances.

Pi Utility & Use Cases

Pi Network wants the coin to actually do something, not just sit in the best crypto wallets. Here are a few ways people are already using Pi:

• E-commerce Transactions: You can use Pi to buy real stuff from vendors in the Pi ecosystem.
• Decentralized Applications (dApps): Developers are building apps that use Pi coins for features, payments, and services.
• Blockchain Gaming: With games like FruityPi, users spend Pi on in-game items, showing how it can power digital entertainment.
• Domain Services: You can grab a .pi domain to create your own identity inside the Pi ecosystem, and you pay for it with Pi.
• Utility Usage Bonus: By actively using the Pi Wallet, Chat, and KYC tools, users can earn extra Pi as a reward for participation.

These use cases are a step toward making Pi more than a mined number. It’s about making it valuable in the real world.

Governance & Protocol Control

The core team is still steering the ship, but they don’t plan to keep control forever. The idea is to gradually move toward a system where the community has more say. Here’s how it works:

• Provisional Governance: The Core Team currently makes the big decisions, keeping things stable while the platform is still growing.
• Community Participation: The plan is to open things up. Users will eventually be able to vote on changes, propose features, and help guide the project’s direction.
• Transparency and Accountability: The team provides updates and keeps communication open so users aren’t left guessing.

Eventually, the goal is to hand over more control to the community. It’s not there yet, but that transition is built into the roadmap.

Pi Network’s tokenomics are built to support a growing community, reward genuine participation, and offer real utility. It’s all about creating a crypto economy that people can actually use, not just speculate on.

How Does Pi Network Work?

Pi Network runs on a different idea from traditional crypto mining, which uses a consensus algorithm like proof-of-work that relies on computational power. Instead of using heavy computing power to mine coins, it uses a system based on trust and participation.

You’re not competing to solve complicated math problems. You’re showing up, checking in, and being part of a network that grows through real people.

The Pi Network operates on the Stellar Consensus Protocol (SCP), which is based on the Federated Byzantine Agreement (FBA) model. That sounds technical, but here’s what matters: the network reaches agreement through trusted relationships, not by wasting energy. Each user helps secure the network by creating a “Security Circle,” a small group of people they trust. These circles connect across the network, and that trust is used to verify transactions.

Users can take on different roles depending on how involved they want to be:

This structure makes it easy to get started, but it also gives users a path to go deeper if they want. Whether you’re just tapping the app or running a full node, your role helps keep Pi Network alive and growing.

Architecture Behind the Pi Crypto Coin

Pi’s architecture is designed first for regular users, but that doesn’t mean it cuts corners. It’s a full blockchain system under the hood; it just hides the complexity behind a simple mobile interface.

Here’s what it’s built on:

Altogether, the system blends social trust with blockchain tech, making it approachable for newcomers but still powerful behind the scenes.

Pi Coin’s Blockchain Structure

Pi’s blockchain is built to combine usability with security. It’s still being developed behind the scenes, but here’s what we know about its structure.

This setup focuses on speed, scalability, and privacy while remaining grounded in social trust rather than raw computing power.

Token Standards & Smart Contracts

Pi Network plans to support smart contracts that let developers build apps and tools directly on its blockchain. These features are designed to give the Pi ecosystem real utility, with functions that go far beyond simple payments.

Once fully live, this smart contract layer will give Pi users and developers the ability to create new use cases and services within the network, bringing real-world functionality to the Pi ecosystem.

Scalability & Performance

With tens of millions of users already on board, Pi Network needs to handle growth without falling apart. Instead of copying other blockchains that rely on high fees or high-speed hardware, Pi is trying something more efficient.

Instead of throwing more power at the problem, Pi focuses on smart design and community participation. It’s built to grow alongside its users, not ahead of them.

Pi Crypto’s Standout Features

Pi Network does things differently from traditional cryptocurrencies. It focuses less on high-powered machines and more on real people, trust, and ease of use. Here are the standout features that make it unique:

1. Mobile-First Mining

With Pi, mining doesn’t require a supercomputer or a noisy setup in your garage. All you need is your phone. Through the Pi Network app, users mine coins by checking in daily. This type of pi mining is lightweight, simple, and doesn’t drain your battery or data. It’s mining that fits into your everyday routine.

2. Social Trust-Based Security

Instead of machines doing all the work, Pi relies on people. Users create Security Circles by adding trusted contacts. This helps validate transactions and builds a web of trust. It’s a people-powered security model, strengthened by real connections and activity within the referral system.

3. Zero Financial Entry Barrier

You don’t need money to get started. No fees, no purchases, just an invitation code, an email address, and the app. That makes it easy for new users and new members, especially in places where access to finance or crypto is limited. This open-door approach is one of Pi’s most inclusive features.

4. Energy Efficiency

Pi avoids the massive energy use of older networks by running on the Stellar Consensus Protocol. Compared to traditional cryptocurrencies, this setup is far more efficient and eco-friendly. You won’t need to worry about mining contributing to climate problems.

5. Robust Community Engagement

Pi has built a massive user base. With over 45 million Pi network users, the project runs on shared effort. From daily app usage to inviting others into the network, everything depends on real people taking part. This creates a community that actually uses the tools, rather than just watching from the sidelines.

Benefits and Drawbacks of Pi Coin

Pi Network makes crypto feel more approachable, but it also comes with limitations. Here’s a balanced look at the pros and cons:

Pi Network makes crypto feel more approachable, but it’s not without its baggage. You’re getting cryptocurrency mining without the hassle of expensive hardware, which is great. But between the slow mainnet migration, limited utility, and open questions about Pi Network’s legitimacy, it’s smart to keep your expectations in check. The future potential is there, just don’t bet the farm on it.

Pi Coin’s Analytics

This section breaks down key data points around Pi Network’s on-chain activity, token performance, and overall market behavior. We’ll take a closer look at how the coin is trading, what the metrics say about user engagement, and whether momentum is building or fading. From price movement to network activity, this overview will help paint a clearer picture of Pi’s current health and traction in the crypto space.

On-Chain Metrics

Looking at Pi Network’s on-chain data helps us understand who holds the most coins, how active the network really is, and what kind of pressure might hit the market in the near future. Here’s what the numbers are telling us:

Whale Holdings
There are just 16 wallets with over 10 million Pi each, putting them in the “whale” category. That’s only 0.0001% of all accounts. It’s a tiny group, but together they likely hold a large portion of the total supply. These wallets may belong to early insiders or the core team. Just below them are around 10,000 “shark” wallets holding between 1 and 10 million Pi. Together, these larger holders have serious influence on Pi’s supply and could impact the market if they start moving coins around.

Number of Active Addresses
We don’t have access to daily active wallet stats, but we do know there are over 14 million unique addresses in total. Most of these wallets are still relatively small, but it shows there’s broad interest. While activity levels vary, this kind of reach suggests a large and growing user base, even if each user only holds a small amount of Pi.

Addresses by Time Held
Although time-held stats aren’t visible, we can learn a lot from the unlock schedule. Over 5 billion Pi have already been unlocked and are circulating. And based on the current trend, more than 1.3 billion Pi will be unlocked in the next 12 months. That tells us many users are still holding and unlocking gradually, which may help reduce the risk of a sudden flood of coins.

Addresses by Holdings
Most Pi holders fall into the smaller wallet categories. “Microbes,” “Plankton,” and “Shrimps” (those with less than 1,000 Pi) make up more than 98% of all accounts. This means Pi is mostly held by everyday users rather than a few big investors. While this supports decentralization, it also means the market may rely heavily on smaller transactions and slower growth unless utility ramps up.

Development Activity
We don’t have public GitHub data to track exact development activity, but progress is still happening. The Pi team has rolled out updates to the Pi Browser, Pi Wallet, and ecosystem tools like .pi domains and small games. It’s not as transparent as other projects, but the infrastructure is clearly growing in the background.

Exchange Inflow and Outflow
Right now, the biggest signal comes from the unlock data. In June 2025 alone, over 280 million Pi were unlocked. On average, about 136 million Pi will unlock each month over the next year. That’s roughly $87 million in value entering the market monthly. If demand doesn’t keep up, this could put pressure on the price. So far, inflows suggest that many users are moving coins to exchanges, possibly to take profits or test liquidity.

What Do Experts Think About Pi Network

Pi Network has built one of the biggest user bases in crypto, but expert opinions are all over the place. Some think it’s harmless and maybe even promising. Others see it as smoke and mirrors. Here’s what two credible voices have to say.

Lyle Daly, writing for The Motley Fool, says the app might not cost anything to use, but that doesn’t mean it’s valuable. Daly explained:

“There isn’t any financial risk with Pi because the app is free to use. The only thing you’re spending is your time when you check in to keep mining.The project has been around for years without launching, and its cryptocurrency has zero value. There has even been speculation that it could be a social experiment to see how long people will continue mining a cryptocurrency they can’t withdraw or use.”

Dr. Toghrul Aliyev, writing for CCN, took aim at Pi’s claims of decentralization, arguing the network is still fully in the hands of the core team.

“Pi’s centralization further contradicts its promises. Mainnet remains under the exclusive control of the core team’s nodes, which means that no external parties can validate transactions,” he argued. “Pi, however, maintains centralized control, masking it with marketing.”

So is Pi the future of mobile crypto, or just a well-packaged experiment? For now, it’s free to try and easy to walk away from, but as experts point out, hype isn’t utility, and trustless systems aren’t built on central control. Still, with a massive global user base and signs of progress, Pi has a real shot, if it can back up the vision with real-world results.

Is Pi Coin a Buy?

Right now, Pi Coin feels like one of those projects that could either turn into something big or quietly fade away. It’s dropped nearly 80% from its February peak of $2.98 to around $0.62 in June. That kind of plunge isn’t just noise, it shows people are unsure, maybe even spooked.

Still, there’s been a bounce from the April bottom of $0.40, up over 50%, which suggests some are still willing to roll the dice. But who are they? True believers or just short-term traders chasing the next spike?

The concept behind Pi, making crypto accessible via mobile mining and building a giant user base, is solid in theory. But right now, the token doesn’t do a whole lot. Sure, the mainnet is finally open, but practical use cases are minimal and mostly stay inside the Pi bubble.

Then there’s the token supply: 100 billion. That’s huge. Even if 80% of the coin goes to users, the risk is that those coins will flood the market before enough demand to support the price. If that happens, Pi’s value could continue to slide.

In addition, the Pi ecosystem still feels walled off. Critics say it’s too closed, not transparent enough, and overly reliant on a small set of in-app features, which is a tough sell for serious investors.

So, is Pi a good buy? If you’re cautious with your money and looking for stable plays, probably not. If you’re more of a risk-tolerant trader who sees potential in the long game, maybe. Just go in with your eyes open and your expectations in check.

Pi Coin is speculative and volatile. It could reward the bold or burn the reckless. Only invest what you’re totally okay with losing.

How to Buy Pi Coins?

The process for buying Pi Coins is actually pretty simple once you know where to go. For this example, we’re using OKX, one of the few major exchanges where Pi is listed and tradeable. Here’s how to do it without losing your mind or your money.

Although OKX makes the process relatively easy, buying Pi Coin still carries risks, especially since its utility outside the Pi ecosystem remains limited. If you do decide to buy, treat it like an experiment, not a retirement plan. And once you’ve bought in, make sure you keep those coins somewhere safe.

Best Pi Network Wallets

Need a place to stash your Pi Coins? Here are a few options worth checking out:

No matter how you plan to use your Pi Coins, whether you’re just holding or looking to do more later, Best Wallet is a smart pick if you want room to grow. It’s beneficial if you’re exploring newer tokens or need tools beyond basic storage. Find out more at our Best Wallet Review.

Visit Best Wallet

You don’t need to overthink it, just pick the one that fits how you use crypto. Whether you want simplicity, control, or flexibility, there’s something here that’ll work. In fact, we have a whole review dedicated to the best wallets for Pi Network, and you can read it here: Best Pi Network Wallets in July 2025

Pi Network’s Future: What To Expect?

Pi Network’s future is at a make-or-break point. It’s come a long way in the cryptocurrency space, especially considering it started as an experiment from a few Stanford University researchers.

The whole idea was to build a currency that anyone could mine from their phone; no significant computational power or expensive rigs were needed. But now, people want more than just a daily tap.

What Is Pi Network Used For?

Right now, Pi Network is mostly used to stay active in the app. You mine by hitting the lightning button, earn more by inviting friends with your referral code, and build trust through Security Circles. The ecosystem also includes a few marketplace-style apps and mini-games.

But that’s still pretty limited. If Pi wants to grow, it needs to be usable in the real world, in stores, for subscriptions, maybe even for sending money across borders. That’s the level we believe it needs to hit to really take off in the cryptocurrency market.

Pi Network Use Cases: What Needs to Happen

If anyone were to ask about Pi Network use cases, they’d really be asking: “Can I use this coin for anything other than mining on my phone?” Right now, the answer is “sort of.” But that needs to change. Pi’s value will depend on how many various sectors it can break into, e-commerce, gaming, and digital services. And let’s be honest, most people aren’t going to wait forever to see that happen.

Also, let’s talk about that pyramid scheme label. Whether it’s fair or not, critics have called out the heavy emphasis on referrals. When combined with slow liquidity, people start to get suspicious. If the Pi team wants serious adoption, they’ll need to make the economics and the roadmap way clearer.

Privacy and Potential Regulation Concerns

There’s also the KYC process. You’ve got to hand over sensitive information just to unlock your tokens. Since users can log in with a Facebook account, privacy concerns are totally valid. Until the team explains exactly how that data is protected, people are right to stay cautious.

Regulation is another potential roadblock. Pi is still coming out of its testing phase, and it’s stepping into a world where governments are cracking down on anything remotely noncompliant. Handling that side of things will play an important role in whether Pi makes it into everyday use or gets left behind.

Final Outlook: Cautiously Optimistic

All in all, Pi Network is a really ambitious project. It’s created a large community, lowered the entry bar with minimal impact on devices, and opened the crypto world up to people who wouldn’t normally get involved. But right now, it’s still limited by its own walls.

If the team can roll out more Pi Network use cases, build real-world value, and bring the coin out of the sandbox, there’s potential. Until then, the smartest move is a cautious approach. This could be the next big thing, or it could just as easily fizzle out like so many other promising ideas. We’re watching closely.

That said, while Pi Network shows promise, it’s still early, and several other crypto projects are in presale right now that we think could outperform Pi in both utility and ROI. If you’re looking for high-upside opportunities with clearer token access and roadmap visibility, check out our curated list of the best crypto presales currently available.

Conclusion: What is Pi Network?

Pi Network is either a glimpse into the next phase of crypto adoption or a long-running experiment that never fully delivers. It has everything a headline-grabbing project needs: a massive user base, a mobile-first mining model, and a mission to bring crypto to the masses. But excitement only gets you so far.

The real test now is value, not just in price, but in purpose. Can people use Pi to actually pay for things? Will the ecosystem expand beyond its own walls? And will the project evolve fast enough to keep up with a rapidly changing crypto landscape?

Right now, Pi is more of a slow burn than a breakout. It’s interesting, accessible, and refreshingly different, but also unfinished. Whether it becomes a staple of the decentralized economy or just another footnote in crypto history depends on what happens next. Until then, stay curious, stay skeptical, and stay informed. And yes, do not forget to read our Bitcoin trading guide for beginners.

See Also:

• How to Buy Pi Network (PI): Steps & Exchanges
• Avalanche Review: Beginner’s Guide to AVAX
• A Beginner’s Guide to Bitcoin Cloud Mining in 2025

References

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• Mazieres, David. “The Stellar Consensus Protocol: A Federated Model for Internet-level Consensus.” Association for Computing Machinery (ACM), https://dl.acm.org/doi/10.1145/3211933.3211953.
• The Motley Fool. “Pi.” The Motley Fool, https://www.fool.com/terms/p/pi/.
• CCN. “Is Pi Network a Legit Crypto or a Scam?” CCN, https://www.ccn.com/analysis/crypto/pi-network-legit-scam-data-harvest-ad-network/.
• Binance. “Pi Network Introduces Roadmap Milestones for 2024 and Beyond.” Binance, https://www.binance.com/en/square/post/15232785069809.
• PiScan. “Pi Account Statistics – Balance Distribution & Top Accounts.” PiScan, https://piscan.io/account-stats.
• PiScan. “Monthly Pi Unlock Statistics.” PiScan, https://piscan.io/unlock-statistics-monthly.