The systemwide base mining rate (B) started at 3.1415926 Pi/hour and halved every time the network of Engaged Pioneers increased in size by a factor of 10x, starting at 1000 Pioneers.
The pre-Mainnet mining formula determined a Pioneer’s hourly mining rate based on several factors, including the systemwide base mining rate (B), Security Circle rewards (S), and Referral Team rewards (E). The formula was expressed as: M = I(B,S) + E(I) Where: M is ...Read more
Pi Network’s mining mechanism allows Pioneers to contribute to the network’s growth, distribution, and security and be rewarded with Pi tokens. This process is designed to be meritocratic, meaning that rewards are based on the contributions made by each Pioneer.
The token model is subject to tweaking based on early Mainnet results. The community may consider questions such as inflation after the distribution of the 100 billion Pi to further incentivize contributions, provide liquidity, and ensure network health. Decentralized decision-making ...Read more
Liquidity is crucial for ecosystem viability, activity, and utility creation. It ensures timely access to Pi for ecosystem participants, facilitating transactions and the flow of value within the network.
During the pre-Mainnet phases, Pi Network focused on driving network growth and widely distributing Pi to bootstrap participation. The mining mechanism incentivized Pioneers to form Security Circles, crucial for the network’s consensus algorithm.
The Mainnet phase shifts focus to rewarding diverse Pioneer contributions essential for ecosystem building and utility creation. It introduces a clear maximum total supply of 100 billion Pi to address unpredictability and ensure long-term network incentives.
The pre-Mainnet supply model’s unpredictability raised concerns about planning, over-rewarding or under-rewarding contributions, and maintaining long-term incentives. These issues prompted a shift to a clearer supply model for Mainnet.
The community receives 80% of the total supply, with 65% allocated for mining rewards, 10% for community organization and ecosystem building, and 5% for liquidity pools. The Pi Core Team receives 20% of the supply.
Mining rewards will be diversified to incentivize various contributions related to app usage, node operation, and Pi lockup. Yearly supply limits will be determined based on a declining formula to ensure a smooth allocation curve over time.