The Pi Network has come under scrutiny as fresh data highlights a significant concentration of Pi Coin holdings within the core team. Reports indicate that approximately 62.8 billion Pi Coins are held across just six wallets controlled by the network’s team. Additionally, around 20 billion Pi reside in roughly 10,000 unlisted wallets linked to the team, bringing the total to 82.8 billion Pi. This amounts to over 80% of the network’s maximum supply of 100 billion coins.
Such centralization has sparked concerns about Pi Network’s long-term decentralization and transparency. While it is common for early-stage networks to maintain some level of control, Pi Network’s extreme coin concentration is raising red flags. The platform currently operates with only 43 nodes and three validators worldwide—numbers that pale in comparison to established blockchain networks. Bitcoin (BTC), for example, has over 21,000 nodes, while Ethereum (ETH) boasts more than 6,600, and Solana (SOL) operates with roughly 4,800 nodes.
A lack of decentralization means that network control is concentrated in the hands of a few entities, leaving the project vulnerable to governance risks. Moreover, concerns over transparency have been amplified by the difficulty in analyzing Pi Network’s source code and on-chain data. According to PiScan, “Analyzing Pi Network’s source code and on-chain data is currently challenging due to its incomplete openness.”
Adding to the concerns, Pi Network has introduced ChatGPT as part of its Know Your Customer (KYC) process. The company’s 2025 privacy policy update revealed that it is leveraging AI for identity verification, a detail absent from its previous policy. This has sparked debates over user privacy and data handling, as AI involvement could potentially increase risks associated with third-party access.
Regarding the information about the burning of PI tokens: yes, there might be some confusion.
— Piscan.io (@piscanofficial) March 7, 2025
This is Stellar’s mechanism, where the fee pool is removed from circulation and considered burned. This mechanism exists in the Stellar core that Pi Network utilizes.
We purely…
Meanwhile, dissatisfaction among Pi Network users continues to grow. Many have voiced frustration over prolonged lockup periods and limited access to their tokens. Google Trends data reveals a sharp decline in search interest for Pi Network, dropping from a peak of 100 at the mainnet launch on February 20 to just 12 currently.
Also Read: Pi Network Drops 12% Amid Supply Concerns
With growing concerns over centralization, transparency, and privacy, Pi Network faces mounting challenges in maintaining trust within its community.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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