Pi Mainnet Launch

  


Pi Mainnet Launch

Pi Mainnet Launch: Pi Mainnet is now live, initiating the Enclosed Network period of the Mainnet phase where the Mainnet blockchain is firewalled to prohibit external connectivity but allows peer-to-peer and peer-to-app transfers within the enclosed network. Mainnet can be viewed in the Pi Blockexplorer. The pi wallet can now show both Testnet and Mainnet balances, although everyone’s balance on Mainnet is 0 right now. As more Pioneers pass KYC, they will be able to transfer their balance to the Mainnet. The KYC solution is coming soon to start verifying Pioneers’ identity and onboarding identity validators.

Note that Pi Network is NOT running an ICO or any type of crowdfunding sales of Pi. Thus, any party impersonating Pi Network or its founders to conduct a sale or listing is illegal and fake. Any sales of Pi towards Pioneers are unauthorized and have no affiliation with the Pi Core Team. Pioneers should beware of any scams and not participate. Pi can be mined freely by contributing to the ecosystem through our mobile app. Further, any mined Pi can only be claimed from inside the official Pi App through the Mainnet dashboard and then transferred into your Pi wallet. Any website asking Pioneers to claim Pi by other means is fake.

Below is the new draft of the Pi supply and mining sections of our whitepaper. Mining will continue in the Mainnet phase but with a mining, rate dynamically adjusted within the limited supply. For more details, read the new whitepaper sections that review how supply and mining worked before Mainnet and describe how and why they will change at Mainnet. We will also keep the previously released Roadmap chapter at the bottom for reference. Your feedback is welcome before we update the official whitepaper on our website when Open Network begins.

Today we are also releasing a preview of the new mining interface for you to view the new simulated Mainnet mining mechanism in a hypothetical setting and to help you calibrate your lockup setting. The new mining mechanism will not yet go into effect until more people pass KYC and migrate to Mainnet. Before that, all Pioneers can continue mining on the pre-Mainnet mechanism just like before. Once the simulations and calibrations are done and enough Pioneers have migrated into Mainnet, the new Mainnet mining mechanism will take effect and be announced on the home screen.

Token Model and Mining

A well-thought-out, sound token design is critical to the success of a cryptocurrency network. It has the potential to create incentives to bootstrap network formation and growth, build a utilities-driven ecosystem, and thereby support the cryptocurrency underpinning such a system. What a network incentivizes says a lot about what a network needs—for example, network growth or fundamentals-driven utility creation, a mere store of value, or a medium of exchange for the native ecosystem. This chapter covers the supply of Pi and how Pioneers can mine Pi in different phases of the network, and the underlying design rationale for different mining mechanisms including building and growing the network and incentivizing utilities and demand. Note that Pi is a layer one cryptocurrency running on its own blockchain, which “token” here refers to.

At the same time, maintaining a certain scarcity of Pi was important. As explained under the Mining section, the network adopted a mining mechanism where the network mining rate halves every time the network size increases by 10 times, resulting in a series of halving events when it reaches various milestones of engaged Pioneers. The next halving event based on this model would be when the network reaches 100 million engaged Pioneers. Currently, we are over 30 million engaged Pioneers. The network also retained an option to stop all mining altogether in the event that the network reached a certain size, which was, however, yet to be determined. The option to cap the supply of Pi was not exercised before Mainnet, therefore leaving the total supply undefined.

The pre-Mainnet supply model with a mining mechanism tailored to accessibility, growth, and security has bootstrapped a community of over 30 million engaged Pioneers with millions of intertwined Security Circles. A simple, accessible means to mine Pi on a mobile phone helped distribute the tokens widely throughout the world, including among populations that have been left out of the crypto revolution because of a lack of capital, knowledge, or technology. In doing so, the network avoided the extreme wealth concentration evident in Bitcoin and other cryptocurrencies, preparing itself to become a true peer-to-peer decentralized ecosystem with a large enough volume of participants and transactions for utility creation.

Community AllocationsPi Community Distribution (Out of Projected 80 Billion Pi Total)
Pre-mainnet Mining Rewards20 billion Pi (approx.)
Mainnet Mining Rewards45 billion Pi (approx.)
Liquidity Pool reserve5 billion Pi (approx.)
Foundation reserve (Grants, Community events, etc.)10 billion Pi (approx.)

65 Billion Pi will be allocated for all mining rewards—both past and future mining. For past mining rewards, the rough sum of all Pi mined by all Pioneers so far (before Mainnet) is about 30 Billion Pi. However, after discarding Pi mined by fake accounts and depending on the speed and participation of KYC, the pre-Mainnet mined Pi at the beginning of the Open Network can be estimated to range from 10 to 20 Billion. The remaining amount in the 65 billion Pi supply for mining rewards will be distributed to Pioneers through the new Mainnet mining mechanism with conceptual yearly supply limits.

Such yearly supply limits will be determined based on a declining formula. The yearly limit may be computed on a more granular basis such as by the day or by an even smaller time epoch dynamically, depending on factors such as the lockup ratio and the remaining supply of the network at the time. Such calculation of supply limits based on granular time epochs helps achieve a better and more smooth allocation curve through time. For the sake of simplicity here, let’s suppose that the time epoch is yearly. The declining formula would mean that the yearly supply limit for the first year Pi Mainnet Launch of new Mainnet mining will be higher than for the second year, the second year’s higher than the third year’s, and so on. The yearly declining formula and these numbers will need to be finalized closer to the launch of the Open Network period of Mainnet once we will have seen how many Pioneers have KYC’ed and how much of their mined Pi they have transferred into Mainnet.

At Mainnet, Pioneers will be rewarded for their continued contributions to the growth and security of the network. As explained in the Mining section, Pioneer rewards will be further diversified because the network needs more diverse and in-depth contributions related to app usage, node operation, and Pi lockup. Pre-mainnet Pioneers will continue to contribute to Pi and mine from the Mainnet mining rewards, along with any new members joining the network, to ensure the growth and longevity of the network.

10 Billion Pi will be reserved for community organization and ecosystem building that will be, in the future, managed by a non-profit foundation. Most decentralized networks or cryptocurrencies, even though they are decentralized, Pi Mainnet Launch still need an organization to organize the community and set the future direction of the ecosystem, e.g., Ethereum and Stellar. The future Pi foundation will (1) organize and sponsor community events, such as developer conventions, global online events and local community meetings, (2) organize volunteers and committee members, and pay full-time employees who are dedicated to building the community and ecosystem, (3) gather opinions and feedback from the community, (4) organize future community votings, (5) build branding and protect the reputation of the network, (6) represent the network to interact with other business entities including governments, traditional banks, and traditional enterprises, or (7) fulfill any number of responsibilities for the betterness of the Pi community and ecosystem. Further, in order to build a utilities-based Pi ecosystem, various community development programs will be designed, created, and carried out by the foundation to support community developers in the forms of grants, incubations, partnerships, etc.

5 billion Pi will be reserved for liquidity pools to provide liquidity for any ecosystem participants, including Pioneers and Pi apps developers. Liquidity is key for an ecosystem to be viable, active, and healthy. If businesses or individuals want to participate in ecosystem activities (e.g., by selling and buying goods and services in Pi), they must have timely access to Pi. Without liquidity, the ecosystem will not have a healthy flow of Pi, hence harming the creation of utilities.

As discussed in the Roadmap chapter, one benefit of the Enclosed Network period of the Mainnet is to allow calibrations on the token model, if any, based on the early Mainnet results. Therefore, the token model is subject to tweaking before the Open Network period starts. Also, in the future, for the health of the network and ecosystem, the network may face questions such as whether there needs to be any inflation after the completion of the distribution of the 100 Billion Pi. The inflation may be necessary to further incentivize contributions through more mining rewards, make up for any loss of Pi from circulation due to accidents or death, provide for more liquidity, mitigate hoarding that inhibits usage and utility creation, etc. At that time, the foundation and its committees specialized in these matters will organize and guide the community to reach a conclusion on the matter in a decentralized way.

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