Pi Network Criticized for Centralization as Core Team Retains 82.8 Billion $PI

Recent data from PiScan shows that the core team of Pi Network holds a significant portion of the total supply of Pi Coin (PI), raising questions about the project's decentralization. The core team is reported to control around 62.8 billion PI across six wallets, with an additional 20 billion PI in approximately 10,000 wallets not linked to the team. In total, there are 82.8 billion PI, representing a large portion of the maximum fixed supply of 100 billion PI in the network. While such concentration may be necessary in the early stages of network development, it also raises significant concerns about the future decentralization of the project. Limited PI distribution could affect the network's resilience and the community's trust in its decentralized nature. In addition to token distribution, the infrastructure of Pi Network also poses challenges regarding centralization. Reports indicate that the network operates with a limited number of nodes and verification mechanisms. The Pi Core team operates three Validator nodes, validator1, validator2, and validator3, a structure similar to the approach of the Stellar Development Foundation with nodes such as SDF1, SDF2, and SDF3. To better understand, Layer 1 networks like Bitcoin (BTC) and Ethereum (ETH) pride themselves on having significantly more nodes, enhancing their decentralization and security. Bitcoin operates with over 21,000 nodes, while Ethereum has over 6,600 nodes. The limited number of nodes and validators in PI means that network control is concentrated in the hands of a few entities, making the network more centralized than its established counterparts. Integrating AI into KYC and Privacy Concerns In the 2025 privacy policy update, Pi Network has introduced artificial intelligence (AI) into its Know Your Customer (KYC) process to enhance efficiency and security. The updated policy states: We use ChatGPT, as a reliable AI partner, to automatically verify identities and enhance security measures. By using our KYC service, users agree to use ChatGPT and other AI providers that may be deployed in the future as part of our KYC process. Although AI can simplify the identity verification process and reduce manual errors, it also raises concerns about data privacy and the potential misuse of personal information. The community continuously highlights technical difficulties during the mainnet migration process, with many expressing disappointment in the slow and complicated transfer of their funds to the mainnet. Despite the extension of KYC and migration deadlines, some users continue to report issues, leading to dissatisfaction within the community. Furthermore, the extended lock-up period and restricted immediate access to tokens have led some users to consider selling their accounts. This dissatisfaction has contributed to reducing the popularity of Pi Network since its mainnet launch on February 20th. To address these challenges, Pi Network has extended the deadline for KYC verification and mainnet migration multiple times, with the latest extension set to 8:00 AM UTC on March 14, 2025. This extension aims to provide users with additional time to complete the verification and migration process, ensuring comprehensiveness and fairness in the ecosystem. In the past 24 hours, Pi's original token has increased by 19.71% and is currently trading at $1.62. This helps it rise by 45.66% from its all-time high of $2.98.