Network Pi Defends Proposed Coin Supply of 100 Billion, Refuses Implementation of Token Burning Strategy
In the digital currency world, Pi Network stands out for its unique approach to inflation control and community distribution. Unlike many cryptocurrencies, Pi Network has chosen not to burn tokens to reduce supply, instead opting for a more gradual and regulated approach.
Pi Network manages the number of coins in circulation through several methods, including halving, gradually reducing mining rates, and strict Know Your Customer (KYC) verification. This strategy aims to prevent "whale" dominance in the network and ensure a fair distribution of coins among its users.
The total coin supply of Pi Network is set at 100 billion tokens, a decision made to ensure inclusivity for users worldwide. Out of this total, 65% goes to mining rewards for community members, 10% to local Pi-related organizations, and 5% to liquidity pools. This distribution strategy ensures a wide community ownership of the network.
In the early stages, only an estimated 10-20 billion Pi coins will be available on the open network. Reducing the supply to 20 billion could potentially raise prices too fast and exclude new users, particularly those in developing countries. By avoiding token burning, Pi Network maintains a large token supply to keep the network accessible and inclusive.
Pi Network's inflation control strategy favours regulated, gradual token issuance over sharp supply cuts. It achieves this through implementing halving, gradually lowering mining rates, and enforcing KYC verification. Halving means that mining rewards decrease over time, reducing new token issuance rates. KYC verification helps control who obtains tokens and prevents abuse or speculative dumping.
Currently, around 7.81 billion PI coins are in circulation. The large coin supply facilitates the use of Pi coins for trading, buying things, and making new applications. The remaining 20% of the total supply is for the team building the project.
As Pi Network moves towards an open-source future, it currently boasts over 60 million users worldwide. The decision to not burn tokens is to avoid price spikes that could exclude new developing-country users. Pi Network is committed to its goal of broad accessibility, long-term sustainability, and community ownership, and its inflation control strategy reflects this commitment.
Pi Network's inflation control strategy, rooted in regulated, gradual token issuance, is designed to facilitate smooth trading and investing within the community. The large coin supply, along with methods like halving and strict KYC verification, aims to maintain the network's accessibility, particularly for users in developing countries, and prevent any dominant influence by "whales."
