Pi Network’s core team controls a staggering 82.8 billion Pi Coins out of the total 100 billion supply, according to data from PiScan. This overwhelming concentration of tokens has sparked concerns over decentralization, as such control gives the core team significant influence over the network’s future. While early-stage projects often retain large allocations, Pi Network’s figures are notably high.
Breaking down the numbers, the team holds 62.8 billion Pi across six wallets, while another 20 billion PI is stored in approximately 10,000 unlisted wallets linked to the team. Such heavy concentration raises questions about whether the network can ever truly become decentralized.
A Small Validator Set Strengthens Centralization Worries
Beyond token distribution, Pi Network operates with just 43 nodes and three validators worldwide. Compared to major Layer 1 networks—Bitcoin’s 21,000 nodes, Ethereum’s 6,600, and Solana’s 4,800—Pi Network’s setup appears highly centralized. Fewer nodes mean more control remains in the hands of a select few, making it easier to manipulate the network.
PiScan, a blockchain analytics platform, also pointed out that Pi Network’s source code and on-chain data remain difficult to analyze due to a lack of openness. This lack of transparency has added another layer of skepticism around the project’s long-term viability.
ChatGPT in KYC Process Sparks Privacy Concerns
The Pi Network’s latest privacy update has introduced another point of contention. The project recently revealed that it uses ChatGPT to automate its Know Your Customer (KYC) process. While AI-driven identity verification is becoming more common, this move was not previously disclosed, leaving many users questioning how their data is being handled.
According to the updated policy, Pi Network users must consent to their identity data being processed by ChatGPT and potentially other AI providers in the future. The use of AI in KYC adds complexity to data security and transparency, further intensifying privacy concerns.
User Dissatisfaction and Dropping Interest
Beyond centralization and privacy concerns, Pi Network users have also faced frustrations with mainnet migration issues and extended lockup periods. Many have resorted to selling their accounts due to limited access to their tokens.
One crypto user criticized Pi Network, calling it a “pure scam” and questioning its decentralization. He pointed out that the project lacks true blockchain integrity, claiming that transactions displayed on the public blockchain have been removed—something unheard of in legitimate decentralized networks.
One user called it a biggest failure and overhyped project with no real value.
These issues have added a negative impact on Pi Network’s popularity. Google Trends data shows that search interest in “Pi Network” has dropped from a peak score of 100 on its mainnet launch day, February 20, to just 12 today. This sharp decline suggests fading enthusiasm as users grow increasingly skeptical about the network’s long-term promise.
With concerns over centralization, transparency, and user dissatisfaction mounting, Pi Network faces a crucial test ahead. Whether the project can address these issues and regain trust remains uncertain.
