Pi Network (PI) Tokenomics

The Pi Network is a decentralized cryptocurrency platform designed to enable mobile-based mining without significant energy consumption. Its token economics are structured to support a utility-based ecosystem, transitioning from an Enclosed Mainnet phase to an Open Network phase, which officially launched on February 20, 2026.

Issuance Mechanism

The Pi Network utilizes a capped supply model to ensure long-term sustainability and incentivize network growth.

• Total Supply Cap: The total supply of Pi is strictly capped at 100 billion tokens.
• Mining Mechanism: Unlike traditional Proof of Work (PoW) systems that require specialized hardware, Pi is mined directly on mobile devices. This mechanism is designed to lower the barriers to entry and encourage widespread adoption.
• Distribution Split: The total supply is divided between the community and the development team:
  • 80% (80 billion Pi): Allocated to the Pi community for mining rewards and ecosystem incentives.
  • 20% (20 billion Pi): Allocated to the Pi Core Team to support ongoing development and operations.

Allocation Mechanism

The allocation of Pi tokens is focused on rewarding contributions that enhance the network's security and utility.

The community allocation is distributed based on various contribution types, including:

• Network Growth: Incentives for bringing new users into the ecosystem.
• Security: Rewards for participating in the consensus process and securing the network.
• App Usage: Incentives for interacting with decentralized applications (dApps) within the Pi Browser.
• Node Operation: Rewards for users who run Pi nodes to support the blockchain infrastructure.

Usage and Incentive Mechanism

The Pi token (PI) serves as the native utility currency within the ecosystem, facilitating various functions:

• Peer-to-Peer Transactions: PI is used for decentralized value transfers between users.
• Ecosystem Utility: The network features a virtual storefront where "Pioneers" can offer goods and services in exchange for PI.
• Developer Monetization: The Pi App Studio provides tools for developers to integrate PI payments into their apps. As of early 2026, this includes a developer library that allows for no-code payment integration, supporting features like unlocking in-app content or making purchases.
• Incentive Flywheel: The network employs a "flywheel" model where token incentives drive infrastructure deployment (nodes and apps), which in turn attracts more users and developers, increasing the structural demand and value of the token.

Locking and Unlocking Mechanism

Pi Network employs a structured locking mechanism to manage circulating supply and encourage long-term commitment from stakeholders.

Locking Mechanism

• Pioneer Lockups: Users can choose to lock a portion of their mined Pi for a specific duration to earn a higher mining rate. This helps stabilize the network by reducing immediate sell pressure upon migration to the Mainnet.
• Core Team Lockups: The 20% allocation for the Core Team is subject to a gradual unlocking process to ensure alignment with the project's long-term success.

Unlocking Schedule and Time

The unlocking of Pi tokens is a continuous process tied to KYC (Know Your Customer) verification and Mainnet migration milestones.

• Daily Unlocks: In early 2026, the network saw significant unlocking activity. For instance, in January 2026, daily token unlocking averaged approximately 4.5 million to 4.6 million PI reaching investors and Pioneers.
• Historical Unlock Events:
  • July 11, 2025: Approximately 13.3 million PI were unlocked as part of a larger 215 million token release schedule.
  • April 2025: A period of high volatility saw 2.3 million tokens unlocked on April 14, increasing to nearly 10 million tokens by April 18.
• Grace Periods: The network implemented "Grace Periods" (with deadlines extended to late 2024 and early 2025) to allow Pioneers to complete KYC and migrate their tokens to the Mainnet, preventing the loss of mined rewards.

Despite the structured development and utility updates, the PI token has faced market challenges, including low liquidity and selling pressure from these ongoing unlock schedules, leading to price fluctuations in the double-digit range during early 2026.