Introduction: What Will Your Pi Be Worth in the Future? Hopes and Concerns Many People Share
Pi Network has garnered global attention as a cryptocurrency that can be easily mined on a smartphone. However, the question, “What will be the value of the Pi I’ve mined in the future?” is a common concern among many Pioneers (participants). Recently, in particular, there have been whispers that “Pi might flood the market, causing its price to crash.”
This article delves into the truth behind these concerns. We will objectively analyze the current supply, the “lockup” mechanism that holds the key to its price, and plausible future scenarios based on data, elevating your understanding of Pi Network to the next level.
For Those Who Want the Conclusion First: Three Key Points on Pi’s Future Price
For those short on time, here are the core takeaways of this article summarized in three points.
Supply Pressure is Real: Billions of Pi have already been issued, and it’s a fact that this could become future selling pressure.
Lockup is Key: However, the majority of this supply is isolated from the market through the “lockup” mechanism. This system acts as a price stabilizer.
Value Depends on Utility: The ultimate price depends not only on supply but also on how widely Pi is used in the real world (utility).
What is Pi Network’s “Current State” Anyway? Basic Knowledge Before Discussing Price
Before discussing Pi’s price, it’s crucial to accurately understand what stage Pi Network is currently in.
Enclosed Mainnet (Closed Mainnet)
Currently, Pi Network is in the “Enclosed Mainnet” phase. This means that while the blockchain itself is operational, its connection to external exchanges is intentionally restricted. In other words, Pi is not yet officially listed on any cryptocurrency exchange.
What is “IOU Trading”? The True Nature of Currently Observed Prices
So, what are the “Pi prices” seen on some exchanges or websites? In most cases, this is the trading price of an “IOU (I Owe You – a certificate of debt).” This represents the right to exchange for real Pi when the Open Mainnet is launched in the future, and it is not the official price of Pi. Currently, these IOUs are sometimes traded around $0.5 in the market, but it’s important to note that this is merely speculative movement in an unofficial market and does not reflect the project’s true value.
Migration: Moving Your Pi to Your ‘Real Account’
To actually use the Pi you’ve mined, a process called “Migration” is required. This can be understood as the official transfer of your app records (temporary account balance) to your wallet on the blockchain (your real account). So far, over 12 million users worldwide have completed this process.
Core Data: How Much Pi is in Circulation? Analyzing the Current Supply
Now, let’s look at the data regarding one of the most crucial factors affecting price: “supply.” While there’s information suggesting “7.4 billion Pi have been supplied,” this figure refers to a past point in time.
While the exact number is constantly changing, the important fact is that “billions of Pi have already been migrated to users’ wallets.” This vast amount represents the source of potential “selling pressure” that could enter the market in the future. This fact underpins the concern that “Pi is oversupplied and will crash.”
A Price Stabilizer? The Lockup Mechanism and its Significant Impact
When discussing supply, the “lockup” mechanism is absolutely indispensable. This can act as a powerful brake or accelerator for Pi’s price.
Purpose of Lockup
The primary purpose of lockup is to prevent a massive sell-off of Pi immediately after transitioning to the Open Mainnet (a stage where anyone can trade freely). It is a critically important price stabilization mechanism designed to artificially control market supply and buy time for the ecosystem to mature.
Mechanism Explained Simply
Lockup is set voluntarily by users. Its mechanism is similar to a bank’s “time deposit.”
By “locking” a portion of their held Pi (25% to 100%) for a certain period (2 weeks to 3 years), users are given an incentive: an increase in the amount of Pi they earn through mining.
Once a lockup is set, that Pi cannot be moved until the period expires. This irreversibility contributes to market stability.
Impact on Current Situation
Most notably, a significant portion of the Pi that has actually been migrated is prevented from circulating in the market for extended periods due to this lockup system. This significantly alleviates the aforementioned “billions of Pi selling pressure” at present.
What About Future Price? Two Possible Scenarios
Based on the information so far, let’s look at plausible scenarios for Pi’s future price from an objective perspective.
Scenario 1: Manifestation of Downward Pressure
A pessimistic scenario could occur as lockup periods (e.g., 1 year or 3 years) sequentially expire. If the amount of Pi released into the market increases and is not met by sufficient buying demand, the price could fall. If many users move to secure profits simultaneously, it would create significant selling pressure.
Scenario 2: Uplift Driven by Utility
The key to an optimistic scenario is the creation of real demand, or utility, where people “want to use Pi.” If more apps and stores allow purchases of goods and services with Pi, and Pi becomes deeply rooted in the community as a convenient payment method rather than just a speculative asset, buyers and users may outnumber sellers, leading to price stability or appreciation. Furthermore, if an official listing on a major exchange like Binance were to materialize, trustworthiness and liquidity would significantly increase, potentially becoming a major factor in pushing up the price.
Conclusion: How Should We Approach Pi Network’s Future?
The future value of Pi Network will be determined by the tug-of-war between the unavoidable selling pressure from “supply” and the two forces of “stabilization through lockup” and “demand creation through ecosystem growth.”
Instead of fluctuating with the short-term movements of unofficial IOU prices, it is most crucial to adopt a long-term perspective on how concretely the project’s vision of “building the world’s most widely used cryptocurrency ecosystem” will progress. This will be key to discerning Pi’s true value.
We hope this article has helped deepen your understanding of Pi Network.
Next Steps
Check official information: To identify reliable information, regularly check announcements within the official Pi Network app and the official blog.
Read the Whitepaper: To understand the project’s philosophy and detailed mechanisms, we recommend reviewing the Whitepaper from the official website.