Pi Network discloses the distribution plan of 80 billion Tokens! 6.5 billion allocated for Mining rewards, can the scarcity model support the future value of Pi coin? | Pi coin price prediction

Pi Network officially announced its allocation plan for a total of 80 billion Pi coins, aimed at balancing early pioneer incentives with new user participation opportunities, and influencing future value through long-term scarcity management. The core plan is: 6.5 billion Pi for mining rewards (2 billion for pre-mainnet mining + 4.5 billion for mainnet mining), 500 million injected into liquidity pool, and 1 billion allocated to foundation and community programs. The project party expects that after KYC verification, only 1 to 2 billion pre-mainnet Pi will migrate to the mainnet (excluding fake accounts). The remaining mining rewards will be released through mainnet mining under annual supply restrictions. This article details the logic of Pi token allocation, scarcity value, and new user opportunities.

800 billion Pi Token Distribution Framework: Balancing Historical Contributions and Ecological Future Pi Network has clarified the detailed distribution plan for its fixed total supply of 80 billion Pi coins, with the core aim of providing rewards for early contributors, while ensuring ongoing engagement for new users, and managing long-term scarcity through a gradual release mechanism:

• Mining rewards ( total amount 6.5 billion Pi ):
  • Pre-Mainnet Mining rewards: 2 billion Pi - Rewards for the pioneer users participating in ecological construction before the mainnet goes live.
  • Mainnet Mining Rewards: 4.5 billion Pi - Will be mined by new users and ongoing contributors under the constraint of the annual supply cap after the mainnet launch.
• liquidity pool: 500 million Pi - Used to support exchange liquidity and ensure smooth market transactions.
• Foundation and Community Initiatives: 1 Billion Pi - To support protocol development, ecological construction, community incentives, and other long-term development projects.

Pre-Mainnet Pi Migration: Expected circulation of only 1-20 billion after KYC filtering The Pi core team estimates that due to strict KYC (Know Your Customer) verification, a large number of unverified or fraudulent accounts will be filtered out, and ultimately only 1 billion to 2 billion pre-mainnet mining produced Pi will successfully migrate to the mainnet for circulation. This significantly reduces the initial circulation volume and enhances scarcity.

Scarcity Drives Value: Annual Release Cap Constructs Core Model The core of Pi Network's supply model lies in influencing future value through actively creating scarcity:

1. Limit Initial Circulation Volume: Strictly control the number of Pi that can be circulated at the time of Mainnet launch (mainly the migrated pre-Mainnet Pi).
2. Annual Supply Cap: The 4.5 billion Pi from Mainnet Mining is not released all at once, but is gradually produced under the rule of setting a supply cap each year.
3. Demand-driven price increase: If ecological development drives demand growth, limited circulation (especially in the early stages) may push prices up under supply shortages.
4. Control inflation and protect the value of rewards: Gradual release effectively avoids short-term vicious inflation, ensuring the long-term purchasing power of Mining rewards remains relatively stable.

Differences from traditional coins: Sustainable incentives to avoid "mining exhaustion" The model of Pi is significantly different from cryptocurrencies like Bitcoin that face the problem of "insufficient incentives after all coins are mined". Pi chooses to continuously release most of its tokens (4.5 billion) over the next few decades, rather than concentrating distribution in the early stages. This helps to:

• Balancing Long-term Miner Incentives: Continuously released block rewards maintain the participation motivation of miners/validators.
• Maintain a Healthy Supply Dynamic: Avoid issues caused by stagnation in circulation after early massive releases.

New User Opportunity: Open Participation, Avoid Early Monopoly This allocation plan ensures that new users still have substantial participation and mining profit opportunities after the Mainnet goes live:

• Prevent Supply Monopolization: Early pioneers will not hold the majority of the supply, reducing the risk of a minority controlling the network.
• Limited Open Mining: Continuously open mining under the annual cap framework, supporting community continuous expansion and long-term maintenance of user participation.
• Emphasizing Inclusiveness and Growth: New users joining the ecosystem are not restricted by the early participation deadline, reflecting Pi's emphasis on inclusiveness and the sustained growth of the community.

Price Stability and Ecological Development: Liquidity Pools and KYB Support

• Annual Release Cap Stabilizes the Market: Prevents a sudden surge in supply from impacting the market, allowing Pi Network to secure valuable time to build practical application scenarios and ecological utility before significant price fluctuations.
• Liquidity Pool Ensures Transactions: The reserved 500 million Pi liquidity pool will support market stability and reduce trading slippage.
• KYB Certification Enhances Trust: The Pi core team recently emphasized the need for KYB (Know Your Business) verification for partner enterprises, aimed at enhancing ecological legitimacy, building trust, and ensuring secure integration during the evolution of the network.

Conclusion: The distribution plan of 80 billion Pi Network tokens actively manages scarcity through pre-Mainnet KYC filtering (only 1-20 billion migration) and annual Mainnet release limits. Combined with a long-term release mechanism for 6.5 billion Mining rewards, it aims to balance early contributor returns, new user participation incentives, and long-term value support. The core advantage of its model lies in avoiding the "Mining exhaustion" problem by maintaining network vitality through gradual releases and enhancing market stability and ecological credibility with liquidity pools and corporate KYB certification. However, whether this intricate economic design can ultimately translate into sustainable user adoption and prosperity in real application scenarios is the key test of Pi coin's long-term value. Scarcity is just the foundation; ecological utility is the king.