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Livre blanc Pi

Les chapitres du livre blanc de décembre 2021 « Modèle de jetons et exploitation minière » et « Feuille
de route » ont été publiés en tant qu'addendum au livre blanc original de 2019, avec de nouvelles
informations sur Mainnet. Le livre blanc original de mars 2019 peut nécessiter des mises à jour de son
contenu. Veuillez donc vous référer aux dernières communications du réseau Pi pour obtenir des
informations à jour. Les deux livres blancs sont susceptibles d'être modifiés en fonction des données
collectées pendant la période de réseau fermé du réseau principal.

Original mars 2019

décembre 2021

Livre blanc : mars 2019 Original

Introduction

Préface

À l’heure où le monde devient de plus en plus numérique, les cryptomonnaies constituent la prochaine
étape naturelle dans l’évolution de la monnaie. Pi est la première monnaie numérique destinée aux
citoyens ordinaires, ce qui représente une avancée majeure dans l’adoption de la crypto-monnaie dans
le monde entier.

Notre Mission : Construire une plateforme de cryptomonnaies et de contrats intelligents sécurisée et

exploitée par des gens ordinaires.
Notre vision : Créer l'écosystème peer-to-peer et l'expérience en ligne les plus inclusifs au monde,
alimentés par Pi, la crypto-monnaie la plus utilisée au monde.

AVIS DE NON-RESPONSABILITÉ pour les lecteurs plus avancés : parce que la mission de Pi est d'être aussi
inclusive que possible, nous allons profiter de cette occasion pour présenter nos débutants en
blockchain au terrier du lapin 🙂

Introduction : Pourquoi les crypto-monnaies sont importantes

Actuellement, nos transactions financières quotidiennes dépendent d’un tiers de confiance pour
conserver un enregistrement des transactions. Par exemple, lorsque vous effectuez une transaction
bancaire, le système bancaire conserve un enregistrement et garantit que la transaction est sûre et
fiable. De même, lorsque Cindy transfère 5 $ à Steve via PayPal, PayPal conserve un enregistrement
central de 5 $ débités du compte de Cindy et de 5 $ crédités sur celui de Steve. Les intermédiaires
comme les banques, PayPal et d'autres membres du système économique actuel jouent un rôle
important dans la régulation des transactions financières mondiales.

Cependant, le rôle de ces intermédiaires de confiance présente également des limites :

Capture de valeur injuste. Ces intermédiaires amassent des milliards de dollars en création de richesse
(la capitalisation boursière de PayPal est d'environ 130 milliards de dollars), mais ne transmettent
pratiquement rien à leurs clients – les gens ordinaires sur le terrain, dont l'argent représente une part
significative de l'économie mondiale. De plus en plus de gens sont à la traîne.

Frais. Les banques et les entreprises facturent des frais élevés pour faciliter les transactions. Ces frais ont
souvent un impact disproportionné sur les populations à faible revenu qui ont le moins d’alternatives.

La censure. Si un intermédiaire particulièrement fiable décide que vous ne devriez pas être en mesure
de déplacer votre argent, il peut imposer des restrictions sur les mouvements de votre argent.

Autorisé. L’intermédiaire de confiance sert de gardien qui peut arbitrairement empêcher quiconque de
faire partie du réseau.

Pseudonyme. À une époque où la question de la vie privée devient de plus en plus urgente, ces
puissants gardiens peuvent accidentellement divulguer – ou vous forcer à divulguer – plus
d’informations financières vous concernant que vous ne le souhaiteriez.

Le « système de paiement électronique peer-to-peer » de Bitcoin, lancé en 2009 par un programmeur

(ou groupe) anonyme Satoshi Nakamoto, a constitué un tournant décisif pour la liberté de l'argent. Pour
la première fois dans l’histoire, les gens pouvaient échanger de la valeur en toute sécurité, sans avoir
recours à un tiers ou à un intermédiaire de confiance. Payer en Bitcoin signifiait que des personnes
comme Steve et Cindy pouvaient se payer directement, évitant ainsi les frais institutionnels, les
obstructions et les intrusions. Bitcoin était véritablement une monnaie sans frontières, alimentant et
connectant une nouvelle économie mondiale.

Introduction aux grands livres distribués

Bitcoin a réalisé cet exploit historique en utilisant un enregistrement distribué. Alors que le système
financier actuel s’appuie sur le registre central traditionnel de la vérité, le registre Bitcoin est conservé
par une communauté distribuée de « validateurs », qui accèdent à ce registre public et le mettent à jour.
Imaginez le protocole Bitcoin comme une « feuille Google » partagée à l’échelle mondiale qui contient
un enregistrement des transactions, validé et maintenu par cette communauté distribuée.

La percée du Bitcoin (et de la technologie générale de la blockchain) réside dans le fait que, même si les
enregistrements sont conservés par une communauté, la technologie leur permet de toujours parvenir à
un consensus sur les transactions véridiques, garantissant ainsi que les tricheurs ne peuvent pas
enregistrer de fausses transactions ou dépasser le système. Cette avancée technologique permet de
supprimer l’intermédiaire centralisé, sans compromettre la sécurité financière des transactions.

Avantages des grands livres distribués

En plus de la décentralisation, le bitcoin, ou les crypto-monnaies en général, partagent quelques

propriétés intéressantes qui rendent l'argent plus intelligent et plus sûr, bien que différentes crypto-
monnaies puissent être plus fortes dans certaines propriétés et plus faibles dans d'autres, en fonction de
différentes implémentations de leurs protocoles. Les crypto-monnaies sont conservées dans des
portefeuilles cryptographiques identifiés par une adresse accessible au public et sécurisées par un mot
de passe privé très fort, appelé clé privée. Cette clé privée signe les transactions de manière
cryptographique et il est pratiquement impossible de créer des signatures frauduleuses. Cela offre
sécurité et insaisissabilité. Contrairement aux comptes bancaires traditionnels qui peuvent être saisis
par les autorités gouvernementales, la cryptomonnaie présente dans votre portefeuille ne peut jamais
être confisquée par quiconque sans votre clé privée. Les crypto-monnaies résistent à la censure en
raison de leur nature décentralisée, car n'importe qui peut soumettre des transactions à n'importe quel
ordinateur du réseau pour être enregistrées et validées. Les transactions en crypto-monnaie sont
immuables car chaque bloc de transactions représente une preuve cryptographique (un hachage) de
tous les blocs précédents qui existaient auparavant. Une fois que quelqu'un vous envoie de l'argent, il ne
peut pas vous récupérer son paiement (c'est-à-dire pas de chèques sans provision dans la blockchain).
Certaines crypto-monnaies peuvent même prendre en charge les transactions atomiques. Les « contrats
intelligents » construits sur ces crypto-monnaies ne s'appuient pas simplement sur la loi pour leur
application, mais sont directement appliqués via un code publiquement auditable, ce qui les rend peu
fiables et peut potentiellement éliminer les intermédiaires dans de nombreuses entreprises, par
exemple Escrow pour l'immobilier.

Sécurisation des registres distribués (exploitation minière)

L’un des défis liés au maintien d’un enregistrement distribué des transactions est la sécurité – en
particulier, comment disposer d’un grand livre ouvert et modifiable tout en empêchant les activités
frauduleuses. Pour relever ce défi, Bitcoin a introduit un nouveau processus appelé Mining (utilisant
l'algorithme de consensus « Proof of Work ») pour déterminer qui est « de confiance » pour mettre à
jour l'enregistrement partagé des transactions.

Vous pouvez considérer le minage comme une sorte de jeu économique qui oblige les « validateurs » à
prouver leur mérite lorsqu’ils tentent d’ajouter des transactions au dossier. Pour se qualifier, les
validateurs doivent résoudre une série d’énigmes informatiques complexes. Le validateur qui résout le
puzzle en premier est récompensé en étant autorisé à publier le dernier bloc de transactions. La
publication du dernier bloc de transactions permet aux validateurs de « miner » une récompense de
bloc – actuellement 12,5 bitcoins (ou ~ 40 000 $ au moment de la rédaction).

Ce processus est très sécurisé, mais il nécessite une puissance de calcul et une consommation d’énergie
énormes, car les utilisateurs « brûlent de l’argent » pour résoudre le casse-tête informatique qui leur
rapporte plus de Bitcoin. Le ratio burn/reward est si punitif qu'il est toujours dans l'intérêt des
validateurs de publier des transactions honnêtes dans le dossier Bitcoin.

Faire défiler vers le haut

Problème

Problème : la centralisation du pouvoir et de l’argent met les crypto-monnaies de première génération

hors de portée

Au début de Bitcoin, lorsque seules quelques personnes travaillaient à valider les transactions et à
extraire les premiers blocs, n'importe qui pouvait gagner 50 BTC en exécutant simplement un logiciel de
minage de Bitcoin sur son ordinateur personnel. Alors que la monnaie commençait à gagner en
popularité, les mineurs intelligents se sont rendu compte qu’ils pourraient gagner plus s’ils avaient plus
d’un ordinateur en état de marche.

Alors que la valeur du Bitcoin continuait à augmenter, des entreprises entières ont commencé à se
tourner vers le mien. Ces sociétés ont développé des puces spécialisées (« ASIC ») et construit
d’immenses fermes de serveurs utilisant ces puces ASIC pour extraire du Bitcoin. L’émergence de ces
énormes sociétés minières, connues pour être à l’origine de la ruée vers l’or du Bitcoin, a rendu très
difficile pour les gens ordinaires de contribuer au réseau et d’être récompensés. Leurs efforts ont
également commencé à consommer des quantités de plus en plus importantes d’énergie de calcul,
contribuant ainsi à aggraver les problèmes environnementaux dans le monde entier.

La facilité d'extraction de Bitcoin et l'essor ultérieur des fermes minières Bitcoin ont rapidement produit
une centralisation massive de la puissance de production et de la richesse dans le réseau Bitcoin. Pour
donner un peu de contexte, 87 % de tous les Bitcoins appartiennent désormais à 1 % de leur réseau, et
bon nombre de ces pièces ont été extraites pratiquement gratuitement à leurs débuts. Comme autre
exemple, Bitmain, l'une des plus grandes opérations minières de Bitcoin, a généré des milliards de
revenus et de bénéfices .

La centralisation du pouvoir dans le réseau Bitcoin rend la tâche très difficile et coûteuse pour l'individu
moyen. Si vous souhaitez acquérir du Bitcoin, vos options les plus simples sont les suivantes :

Mine-le toi-même. Branchez simplement le matériel spécialisé (voici une plate-forme sur Amazon, si
vous êtes intéressé !) et allez en ville. Sachez simplement que puisque vous serez en concurrence avec
d'énormes fermes de serveurs du monde entier, consommant autant d'énergie que la Suisse, vous ne
pourrez pas exploiter grand-chose.

Achetez du Bitcoin sur un échange. Aujourd'hui, vous pouvez acheter du Bitcoin au prix unitaire de 3 500
$/pièce au moment de la rédaction (remarque : vous pouvez acheter une fraction de Bitcoin !). Bien sûr,
vous prendriez également un risque important en le faisant, car le prix du Bitcoin Le Bitcoin est assez
volatil.

Bitcoin a été le premier à montrer comment la crypto-monnaie pouvait perturber le modèle financier
actuel, donnant aux gens la possibilité d'effectuer des transactions sans qu'un tiers ne les gêne.
L’augmentation de la liberté, de la flexibilité et de la confidentialité continue de conduire à la marche
inévitable vers les monnaies numériques en tant que nouvelle norme. Malgré ses avantages, la
concentration (probablement involontaire) de l'argent et du pouvoir du Bitcoin constitue un obstacle
important à son adoption par le grand public. L'équipe principale de Pi a mené des recherches pour
tenter de comprendre pourquoi les gens hésitent à entrer dans l'espace des crypto-monnaies. Les gens
ont systématiquement cité le risque lié à l’investissement/à l’exploitation minière comme un obstacle
majeur à l’entrée.

Faites défiler vers le haut

Solution

Solution : Pi – Activer le minage sur les téléphones mobiles

Après avoir identifié ces principaux obstacles à l’adoption, l’équipe Pi Core a cherché un moyen qui
permettrait aux gens ordinaires d’exploiter (ou de gagner des récompenses en cryptomonnaies pour la
validation de transactions sur un enregistrement distribué de transactions). Pour rappel, l’un des défis
majeurs liés au maintien d’un enregistrement distribué des transactions est de garantir que les mises à
jour de cet enregistrement ouvert ne sont pas frauduleuses. Bien que le processus de Bitcoin pour
mettre à jour son enregistrement soit éprouvé (brûler de l'énergie/de l'argent pour prouver sa fiabilité),
il n'est pas très convivial pour l'utilisateur (ou pour la planète !). Pour Pi, nous avons introduit l'exigence
de conception supplémentaire consistant à utiliser un algorithme de consensus qui serait également
extrêmement convivial et permettrait idéalement l'exploitation minière sur des ordinateurs personnels
et des téléphones mobiles.

En comparant les algorithmes de consensus existants (le processus qui enregistre les transactions dans
un grand livre distribué), le protocole de consensus Stellar apparaît comme le principal candidat pour
permettre une exploitation minière conviviale et axée sur le mobile. Le Stellar Consensus Protocol (SCP)
a été conçu par David Mazières, professeur d'informatique à Stanford et également scientifique en chef
à la Stellar Development Foundation . SCP utilise un nouveau mécanisme appelé Accords byzantins
fédérés pour garantir que les mises à jour d'un grand livre distribué sont exactes et dignes de confiance.
SCP est également déployé en pratique via la blockchain Stellar qui fonctionne depuis 2015 .

Une introduction simplifiée aux algorithmes de consensus

Avant de passer à l'introduction de l'algorithme de consensus Pi, il est utile d'avoir une explication
simple sur ce qu'un algorithme de consensus fait pour une blockchain et les types d'algorithmes de
consensus que les protocoles de blockchain actuels utilisent généralement, par exemple Bitcoin et SCP.
Cette section est explicitement rédigée de manière trop simpliste par souci de clarté et n’est pas
complète. Pour une plus grande précision, consultez la section Adaptations à SCP ci-dessous et lisez le
document du protocole de consensus stellaire.
Une blockchain est un système distribué tolérant aux pannes qui vise à ordonner totalement une liste de
blocs de transactions. Les systèmes distribués tolérants aux pannes sont un domaine de l’informatique
étudié depuis de nombreuses décennies. Ils sont appelés systèmes distribués car ils ne disposent pas de
serveur centralisé, mais sont composés d'une liste décentralisée d'ordinateurs (appelés nœuds ou pairs)
qui doivent parvenir à un consensus sur le contenu et l'ordre total des blocs. Ils sont également appelés
tolérants aux pannes car ils peuvent tolérer un certain degré de nœuds défectueux dans le système (par
exemple, jusqu'à 33 % des nœuds peuvent être défectueux et le système global continue de fonctionner
normalement).

Il existe deux grandes catégories d'algorithmes de consensus : ceux qui élisent un nœud comme leader
qui produit le bloc suivant, et ceux où il n'y a pas de leader explicite mais où tous les nœuds parviennent
à un consensus sur ce qu'est le bloc suivant après avoir échangé des votes par s'envoyer des messages
informatiques. (À proprement parler, la dernière phrase contient de multiples inexactitudes, mais elle
nous aide à expliquer les grandes lignes.)

Bitcoin utilise le premier type d’algorithme de consensus : tous les nœuds Bitcoin sont en compétition
les uns contre les autres pour résoudre un casse-tête cryptographique. Étant donné que la solution est
trouvée de manière aléatoire, le nœud qui trouve la solution en premier, par hasard, est élu leader du
tour qui produit le bloc suivant. Cet algorithme est appelé « Proof of work » et entraîne une grande
consommation d’énergie.

Une introduction simplifiée au protocole de consensus stellaire

Pi utilise l’autre type d’algorithmes de consensus et est basé sur le Stellar Consensus Protocol (SCP) et
un algorithme appelé Federated Byzantine Agreement (FBA). De tels algorithmes ne génèrent pas de
gaspillage d'énergie, mais ils nécessitent l'échange de nombreux messages réseau pour que les nœuds
parviennent à un « consensus » sur ce que devrait être le prochain bloc. Chaque nœud peut déterminer
indépendamment si une transaction est valide ou non, par exemple l'autorisation d'effectuer la
transition et la double dépense, sur la base de la signature cryptographique et de l'historique des
transactions. Cependant, pour qu'un réseau d'ordinateurs puisse se mettre d'accord sur les transactions
à enregistrer dans un bloc et sur l'ordre de ces transactions et blocs, ils doivent s'envoyer des messages
et procéder à plusieurs tours de vote pour parvenir à un consensus. Intuitivement, de tels messages
provenant de différents ordinateurs du réseau concernant le bloc suivant ressembleraient à ce qui suit :
« Je propose que nous votions tous pour que le bloc A soit le prochain » ; « Je vote pour que le bloc A
soit le prochain bloc » ; « Je confirme que la majorité des nœuds en qui j'ai confiance ont également
voté pour le bloc A », à partir duquel l'algorithme de consensus permet à ce nœud de conclure que « A
est le bloc suivant ; et il ne pouvait y avoir aucun bloc autre que A comme bloc suivant » ; Même si les
étapes de vote ci-dessus semblent nombreuses, Internet est suffisamment rapide et ces messages sont
légers, de sorte que ces algorithmes de consensus sont plus légers que la preuve de travail de Bitcoin.
L’un des principaux représentants de ces algorithmes est appelé Byzantine Fault Tolerance (BFT).
Plusieurs des meilleures blockchains actuelles sont basées sur des variantes de BFT, telles que NEO et
Ripple.

Une critique majeure du BFT est qu’il possède un point de centralisation : parce qu’il s’agit d’un vote,
l’ensemble des nœuds participant au « quorum » de vote est déterminé de manière centralisée par le
créateur du système au début. La contribution de FBA est qu’au lieu d’avoir un quorum déterminé de
manière centralisée, chaque nœud définit ses propres « tranches de quorum », qui formeront à leur
tour différents quorums. Les nouveaux nœuds peuvent rejoindre le réseau de manière décentralisée : ils
déclarent les nœuds en qui ils ont confiance et convainquent les autres nœuds de leur faire confiance,
mais ils n'ont pas besoin de convaincre une autorité centrale.

SCP est une instanciation de FBA. Au lieu de brûler de l'énergie comme dans l'algorithme de consensus
de preuve de travail de Bitcoin, les nœuds SCP sécurisent l'enregistrement partagé en garantissant que
les autres nœuds du réseau sont dignes de confiance. Chaque nœud du réseau construit une tranche de
quorum, composée d'autres nœuds du réseau qu'il juge dignes de confiance. Les quorums sont formés
en fonction des tranches de quorum de ses membres, et un validateur n'acceptera de nouvelles
transactions que si et seulement si une proportion de nœuds de son quorum acceptera également la
transaction. À mesure que les validateurs du réseau construisent leurs quorums, ces quorums aident les
nœuds à parvenir à un consensus sur les transactions avec une garantie de sécurité. Vous pouvez en
savoir plus sur le protocole de consensus stellaire en consultant ce résumé technique de SCP .

Adaptations de Pi au protocole de consensus stellaire (SCP)

L'algorithme de consensus de Pi s'appuie sur SCP. SCP a été formellement prouvé et est actuellement
mis en œuvre au sein du réseau Stellar. Contrairement au réseau Stellar composé principalement
d'entreprises et d'institutions (par exemple IBM) en tant que nœuds, Pi a l'intention de permettre aux
appareils des individus de contribuer au niveau du protocole et d'être récompensés, notamment les
téléphones mobiles, les ordinateurs portables et les ordinateurs. Vous trouverez ci-dessous une
introduction sur la manière dont Pi applique SCP pour permettre l'exploitation minière par des
particuliers.

Il existe quatre rôles que les utilisateurs de Pi peuvent jouer en tant que mineurs de Pi. À savoir:
Pionnier. Un utilisateur de l’application mobile Pi qui confirme simplement qu’il n’est pas un « robot »
au quotidien. Cet utilisateur valide sa présence à chaque fois qu'il se connecte à l'application. Ils peuvent
également ouvrir l'application pour demander des transactions (par exemple effectuer un paiement en
Pi à un autre Pioneer)

Donateur. Un utilisateur de l'application mobile Pi qui contribue en fournissant une liste de pionniers
qu'il connaît et en qui il a confiance. Au total, les contributeurs Pi construiront un graphique de
confiance global.

Ambassadeur. Un utilisateur de l'application mobile Pi qui introduit d'autres utilisateurs dans le réseau
Pi.

Nœud. Un utilisateur pionnier, contributeur utilisant l'application mobile Pi et exécutant également le

logiciel Pi Node sur son ordinateur de bureau ou portable. Le logiciel du nœud Pi est le logiciel qui
exécute l'algorithme SCP de base, en tenant compte des informations du graphique de confiance
fournies par les contributeurs.

Un utilisateur peut jouer plusieurs des rôles ci-dessus. Tous les rôles sont nécessaires, donc tous les
rôles sont récompensés quotidiennement par des Pi nouvellement créés tant qu'ils ont participé et
contribué au cours de cette journée donnée. Dans la définition vague d'un « mineur » étant un
utilisateur qui reçoit de la monnaie nouvellement frappée en récompense de ses contributions, les
quatre rôles sont considérés comme des mineurs de Pi. Nous définissons le « minage » plus largement
que son sens traditionnel assimilé à l’exécution d’un algorithme de consensus de preuve de travail
comme dans Bitcoin ou Ethereum.

Tout d’abord, il faut souligner que le logiciel Pi Node n’est pas encore sorti. Cette section est donc
proposée davantage comme une conception architecturale et comme une demande de sollicitation de
commentaires de la communauté technique. Ce logiciel sera entièrement open source et dépendra
également fortement de stellar-core qui est également un logiciel open source, disponible ici . Cela
signifie que n'importe qui dans la communauté pourra le lire, le commenter et proposer des
améliorations. Vous trouverez ci-dessous les modifications proposées par Pi au SCP pour permettre
l'exploitation minière par des appareils individuels.

Nœuds

Pour des raisons de lisibilité, nous définissons comme nœud correctement connecté ce que le document
SCP appelle un nœud intact. De plus, pour des raisons de lisibilité, nous définissons comme réseau Pi
principal l'ensemble de tous les nœuds intacts du réseau Pi. La tâche principale de chaque nœud est
d'être configuré pour être correctement connecté au réseau Pi principal. Intuitivement, un nœud mal
connecté au réseau principal est similaire à un nœud Bitcoin non connecté au réseau Bitcoin principal.

En termes de SCP, pour qu'un nœud soit correctement connecté, cela signifie que ce nœud doit choisir
une « tranche de quorum » telle que tous les quorums résultants qui incluent ce nœud croisent les
quorums du réseau existant. Plus précisément, un nœud vn+1 est correctement connecté à un réseau
principal N de n nœuds déjà correctement connectés (v1, v2, …, vn) si le système résultant N' de n+1
nœuds (v1, v2, …, vn +1) bénéficie d'une intersection de quorum. En d’autres termes, N’ bénéficie d’une
intersection de quorum si deux de ses quorums partagent un nœud. — c'est-à-dire, pour tous les
quorums U1 et U2, U1∩U2 ≠ ∅.

La principale contribution de Pi par rapport au déploiement de consensus Stellar existant est qu'il
introduit le concept de graphe de confiance fourni par les contributeurs Pi comme informations pouvant
être utilisées par les nœuds Pi lorsqu'ils configurent leurs configurations pour se connecter au réseau Pi
principal. .

Lors du choix de leurs tranches de quorum, ces nœuds doivent prendre en considération le graphique de
confiance fourni par les contributeurs, y compris leur propre cercle de sécurité. Pour vous aider dans
cette décision, nous avons l'intention de fournir un logiciel d'analyse de graphiques auxiliaire pour aider
les utilisateurs exécutant Nodes à prendre des décisions aussi éclairées que possible. La sortie
quotidienne de ce logiciel comprendra :

une liste classée de nœuds classés en fonction de leur distance par rapport au nœud actuel dans le
graphe de confiance ; une liste classée de nœuds basée sur une analyse de pagerank des nœuds dans le
graphe de confiance

une liste de nœuds signalés par la communauté comme défectueux de quelque manière que ce soit une
liste de nouveaux nœuds cherchant à rejoindre le réseau

une liste des articles les plus récents sur le Web sur le mot-clé « mauvais comportement des nœuds Pi »
et d'autres mots-clés associés ; une représentation visuelle des nœuds comprenant le réseau Pi similaire
à ce qui est affiché sur le moniteur StellarBeat Quorum

un explorateur de quorum similaire à QuorumExplorer.com

un outil de simulation comme celui du moniteur StellarBeat Quorum qui montre les impacts attendus
sur la connectivité de ces nœuds au réseau Pi lorsque la configuration actuelle du nœud change.
Un problème de recherche intéressant pour les travaux futurs consiste à développer des algorithmes
capables de prendre en compte le graphe de confiance et de suggérer à chaque nœud une configuration
optimale, voire de définir cette configuration automatiquement. Lors du premier déploiement du réseau
Pi, même si les utilisateurs exécutant Nodes peuvent mettre à jour leur configuration Node à tout
moment, ils seront invités à confirmer quotidiennement leurs configurations et à les mettre à jour s'ils le
jugent opportun.

Utilisateurs d'applications mobiles

Lorsqu'un pionnier a besoin de confirmer qu'une transaction donnée a été exécutée (par exemple qu'il a
reçu Pi), il ouvre l'application mobile. À ce stade, l'application mobile se connecte à un ou plusieurs
nœuds pour savoir si la transaction a été enregistrée dans le grand livre et également pour obtenir le
numéro de bloc et la valeur de hachage les plus récents de ce bloc. Si ce Pioneer exécute également un
nœud, l'application mobile se connecte au propre nœud de ce Pioneer. Si le Pioneer n'exécute pas de
nœud, l'application se connecte à plusieurs nœuds et vérifie ces informations. Les pionniers auront la
possibilité de sélectionner les nœuds auxquels ils souhaitent que leurs applications se connectent. Mais
pour simplifier les choses pour la plupart des utilisateurs, l'application doit avoir un ensemble de nœuds
par défaut raisonnable, par exemple un certain nombre de nœuds les plus proches de l'utilisateur en
fonction du graphe de confiance, ainsi qu'une sélection aléatoire de nœuds ayant un classement élevé
en pagerank. Nous demandons votre avis sur la manière dont l'ensemble de nœuds par défaut pour les
pionniers mobiles doit être sélectionné.

Récompenses minières

Une belle propriété de l’algorithme SCP est qu’il est plus générique qu’une blockchain. Il coordonne le
consensus sur un système distribué de nœuds. Cela signifie que le même algorithme de base est non
seulement utilisé toutes les quelques secondes pour enregistrer de nouvelles transactions dans de
nouveaux blocs, mais qu'il peut également être utilisé pour exécuter périodiquement des calculs plus
complexes. Par exemple, une fois par semaine, le réseau stellaire l'utilise pour calculer l'inflation sur le
réseau stellaire et attribuer les jetons nouvellement émis proportionnellement à tous les détenteurs de
pièces stellaires (la pièce de Stellar est appelée lumens). De la même manière, le réseau Pi utilise SCP
une fois par jour pour calculer la nouvelle distribution Pi à l'échelle du réseau parmi tous les mineurs Pi
(pionniers, contributeurs, ambassadeurs, nœuds) qui ont participé activement à une journée donnée. En
d’autres termes, les récompenses minières Pi ne sont calculées qu’une fois par jour et non sur chaque
bloc de la blockchain.
À titre de comparaison, Bitcoin attribue des récompenses minières sur chaque bloc et donne la totalité
de la récompense au mineur qui a eu la chance de pouvoir résoudre une tâche aléatoire nécessitant
beaucoup de calculs. Cette récompense en Bitcoin, actuellement de 12,5 Bitcoins (~ 40 000 $), est
remise à un seul mineur toutes les 10 minutes. Cela rend extrêmement improbable qu’un mineur donné
obtienne des récompenses. Pour résoudre ce problème, les mineurs de Bitcoin s'organisent en pools
miniers centralisés, qui contribuent tous à la puissance de traitement, augmentant ainsi la probabilité
d'obtenir des récompenses et, éventuellement, de partager proportionnellement ces récompenses. Les
pools miniers ne sont pas seulement des points de centralisation, mais leurs opérateurs bénéficient
également de réductions réduisant les sommes versées aux mineurs individuels. Dans Pi, il n'y a pas
besoin de pools miniers, puisqu'une fois par jour, tous ceux qui ont contribué reçoivent une distribution
méritocratique de nouveau Pi.

Les frais de transaction

Semblables aux transactions Bitcoin, les frais sont facultatifs sur le réseau Pi. Chaque bloc a une certaine
limite quant au nombre de transactions pouvant y être incluses. Lorsqu’il n’y a pas d’arriéré de
transactions, les transactions ont tendance à être gratuites. Mais s'il y a plus de transactions, les nœuds
les classent par frais, avec les transactions les plus coûteuses en haut et sélectionnent uniquement les
transactions les plus importantes à inclure dans les blocs produits. Cela en fait un marché ouvert. Mise
en œuvre : les frais sont répartis proportionnellement entre les nœuds une fois par jour. Sur chaque
bloc, les frais de chaque transaction sont transférés dans un portefeuille temporaire d'où, en fin de
compte, ils sont distribués aux mineurs actifs de la journée. Ce portefeuille possède une clé privée
inconnue. Les transactions entrantes et sortantes de ce portefeuille sont forcées par le protocole lui-
même selon le consensus de tous les nœuds, de la même manière que le consensus crée également un
nouveau Pi chaque jour.

Limites et travaux futurs

SCP a été largement testé pendant plusieurs années dans le cadre du réseau Stellar, qui, au moment
d'écrire ces lignes, est la neuvième plus grande crypto-monnaie au monde. Cela nous donne une assez
grande confiance en lui. L'une des ambitions du projet Pi est d'augmenter le nombre de nœuds du
réseau Pi pour qu'il soit supérieur au nombre de nœuds du réseau Stellar afin de permettre à davantage
d'utilisateurs quotidiens de participer à l'algorithme de consensus de base. L'augmentation du nombre
de nœuds entraînera inévitablement une augmentation du nombre de messages réseau qui doivent être
échangés entre eux. Même si ces messages sont beaucoup plus petits qu'une image ou une vidéo
YouTube et qu'Internet permet aujourd'hui de transférer des vidéos de manière fiable et rapide, le
nombre de messages nécessaires augmente avec le nombre de nœuds participants, ce qui peut devenir
un goulot d'étranglement pour parvenir à un consensus. Cela ralentira à terme la vitesse à laquelle les
nouveaux blocs et les nouvelles transactions sont enregistrés sur le réseau. Heureusement, Stellar est
actuellement beaucoup plus rapide que Bitcoin. À l'heure actuelle, Stellar est calibré pour produire un
nouveau bloc toutes les 3 à 5 secondes, pouvant prendre en charge des milliers de transactions par
seconde. En comparaison, Bitcoin produit un nouveau bloc toutes les 10 minutes. De plus, en raison du
manque de garantie de sécurité de Bitcoin, la blockchain de Bitcoin peut, dans de rares occasions, être
écrasée au cours de la première heure. Cela signifie qu’un utilisateur de Bitcoin doit attendre environ 1
heure avant de pouvoir être sûr qu’une transaction est considérée comme définitive. SCP garantit la
sécurité, ce qui signifie qu'après 3 à 5 secondes, on est certain d'une transaction. Ainsi, même avec le
goulot d’étranglement potentiel en matière d’évolutivité, Pi espère parvenir à la finalité des transactions
plus rapidement que Bitcoin et peut-être plus lentement que Stellar, et traiter plus de transactions par
seconde que Bitcoin et peut-être moins que Stellar.

Alors que l’évolutivité de SCP reste un problème de recherche ouvert. Il existe de nombreuses façons
prometteuses d’accélérer les choses. Une solution d'évolutivité possible est bloXroute . BloXroute
propose un réseau de distribution blockchain (BDN) qui utilise un réseau mondial de serveurs optimisé
pour les performances du réseau. Bien que chaque BDN soit contrôlé de manière centralisée par une
seule organisation, ils offrent une accélération de la transmission des messages dont la neutralité est
prouvée. Autrement dit, les BDN ne peuvent servir tous les nœuds que de manière équitable, sans
discrimination, car les messages sont cryptés. Cela signifie que le BDN ne sait pas d’où viennent les
messages, où ils vont ou ce qu’ils contiennent. De cette façon, les nœuds Pi peuvent avoir deux routes
de transmission de messages : une route rapide via BDN, qui devrait être fiable la plupart du temps, et
son interface originale de transmission de messages peer-to-peer, entièrement décentralisée et fiable,
mais plus lente. L'intuition de cette idée est vaguement similaire à la mise en cache : le cache est un
endroit où un ordinateur peut accéder aux données très rapidement, accélérant ainsi le calcul moyen,
mais il n'est pas garanti de toujours disposer de toutes les informations nécessaires. Lorsque le cache
manque, l'ordinateur est ralenti mais rien de catastrophique ne se produit. Une autre solution peut
consister à utiliser l'accusé de réception sécurisé des messages multicast dans les réseaux Peer-to-Peer
ouverts pour accélérer la propagation des messages entre pairs.

Faites défiler vers le haut

Modèle économique Pi

Modèle économique Pi : équilibrer rareté et accès

L’une des innovations les plus impressionnantes de Bitcoin est son mariage de systèmes distribués avec
la théorie des jeux économiques.

Avantages

Approvisionnement fixe

Le modèle économique du Bitcoin est simple. Il n’existera jamais que 21 millions de Bitcoins. Ce numéro
est défini en code. Avec seulement 21 millions de bitcoins en circulation parmi 7,5 milliards de
personnes dans le monde, il n’y a pas assez de Bitcoin pour tout le monde. Cette rareté est l’un des
facteurs les plus importants de la valeur du Bitcoin.

Récompense de bloc décroissante

Le système de distribution de Bitcoin, illustré ci-dessous, renforce encore ce sentiment de rareté. La

récompense de minage de blocs Bitcoin est divisée par deux tous les 210 000 blocs (environ tous les 4
ans environ). À ses débuts, la récompense de bloc Bitcoin était de 50 pièces. Désormais, la récompense
est de 12,5 et diminuera encore à 6,25 pièces en mai 2020. Le taux de distribution décroissant du Bitcoin
signifie que, même si la notoriété de la monnaie augmente, il y a moins à exploiter réellement.

Les inconvénients

Inversé signifie inégal

Le modèle de distribution inversé de Bitcoin (moins de personnes exploitent davantage au début, et plus
de personnes exploitent moins aujourd'hui) est l'un des principaux contributeurs à sa distribution
inégale. Avec autant de Bitcoin entre les mains de quelques premiers utilisateurs, les nouveaux mineurs
« brûlent » plus d’énergie pour moins de Bitcoin.

La thésaurisation empêche l’utilisation comme moyen d’échange

Bien que Bitcoin ait été lancé en tant que système de « monnaie électronique peer-to-peer », la rareté
relative de Bitcoin a entravé l'objectif de Bitcoin de servir d'échange intermédiaire. La rareté du Bitcoin a
conduit à le considérer comme une forme « d’or numérique » ou une réserve de valeur numérique. Le
résultat de cette perception est que de nombreux détenteurs de Bitcoin ne sont pas disposés à dépenser
du Bitcoin pour leurs dépenses quotidiennes.
Le modèle économique Pi

Pi, quant à lui, cherche à trouver un équilibre entre la création d’un sentiment de rareté pour Pi, tout en
garantissant qu’une grande quantité ne s’accumule pas dans un très petit nombre de mains. Nous
voulons nous assurer que nos utilisateurs exploitent davantage de Pi à mesure qu'ils contribuent au
réseau. L’objectif de Pi est de construire un modèle économique suffisamment sophistiqué pour
atteindre et équilibrer ces priorités tout en restant suffisamment intuitif pour que les gens puissent
l’utiliser.

Exigences de conception du modèle économique de Pi :

Simple : créez un modèle intuitif et transparent

Distribution équitable : donner accès à Pi à une masse critique de la population mondiale

Rareté : créer un sentiment de rareté pour maintenir le prix de Pi au fil du temps

Exploitation minière méritocratique : récompenser les contributions pour construire et pérenniser le

réseau

Pi – Fourniture de jetons

Politique d'émission de jetons

Offre maximale totale = M + R + D

M = récompenses minières totales

R = récompenses totales de parrainage

D = récompenses totales des développeurs

M = ∫ f(P) dx où f est une fonction logarithmiquement décroissante

P = Nombre de population (par exemple, 1ère personne à rejoindre, 2ème personne à rejoindre, etc.)

R=r*M

r = taux de référence (50 % au total ou 25 % pour le parrain et l'arbitre)

D = t * (M + R)

t = taux de récompense des développeurs (25 %)

M – Approvisionnement minier (basé sur l’approvisionnement minier fixe émis par personne)
Contrairement au Bitcoin qui crée une offre fixe de pièces pour l’ensemble de la population mondiale, Pi
crée une offre fixe de Pi pour chaque personne qui rejoint le réseau jusqu’aux 100 premiers millions de
participants. En d’autres termes, pour chaque personne qui rejoint le réseau Pi, une quantité fixe de Pi
est pré-monnaie. Cette offre est ensuite libérée tout au long de la vie de ce membre en fonction de son
niveau d'engagement et de sa contribution à la sécurité du réseau. L'offre est libérée en utilisant une
fonction décroissante exponentielle similaire à celle du Bitcoin au cours de la vie du membre.

R – Offre de référence (basée sur une récompense de référence fixe émise par personne et partagée n/b
par le référent et l'arbitre)

Pour qu’une monnaie ait de la valeur, elle doit être largement distribuée. Pour encourager cet objectif,
le protocole génère également une quantité fixe de Pi qui sert de bonus de parrainage à la fois pour le
parrain et l'arbitre (ou pour le parent et la progéniture 🙂 Ce pool partagé peut être exploité par les deux
parties au cours de leur vie – lorsque les deux parties sont activement en train d'exploiter. Le référent et
l'arbitre sont en mesure de s'appuyer sur ce pool afin d'éviter les modèles d'exploitation dans lesquels
les référents sont capables de « s'attaquer » à leurs arbitres. Le bonus de parrainage sert d'incitation au
niveau du réseau pour développer le réseau Pi tout en encourager l’engagement des membres dans la
sécurisation active du réseau.

D – Developer Reward Supply (Additional Pi minted to support ongoing development)

Pi will fund its ongoing development with a “Developer Reward” that is minted alongside each Pi coin
that is minted for mining and referrals. Traditionally, cryptocurrency protocols have minted a fixed
amount of supply that is immediately placed into treasury. Because Pi’s total supply is dependent on the
number of members in the network, Pi progressively mints its developer reward as the network scales.
The progressive minting of Pi’s developer reward is meant to align the incentives of Pi’s contributors
with the overall health of the network.

f is a logarithmically decreasing function – early members mine more

While Pi seeks to avoid extreme concentrations of wealth, the network also seeks to reward earlier
members and their contributions with a relatively larger share of Pi. When networks such as Pi are in
their early days, they tend to provide a lower utility to participants. For example, imagine having the
very first telephone in the world. It would be a great technological innovation but not extremely useful.
However, as more people acquire telephones, each telephone holder gets more utility out of the
network. In order to reward people that come to the network early, Pi’s individual mining reward and
referral rewards decrease as a function of the number of people in the network. In other words, there is
a certain amount of Pi that is reserved for each “slot” in the Pi Network.
Scroll up

Utility

Utility: Pooling and monetizing our time online

Today, everyone is sitting on a veritable treasure trove of untapped resources. Each of us spend hours
day on our phones. While on our phones, each of our views, posts or clicks creates extraordinary profits
for large corporations. At Pi, we believe that people have the right to capture value created from their
resources.

We all know that we can do more together than we can alone. On today’s web, massive corporations
like Google, Amazon, Facebook have immense leverage against individual consumers. As a result, they
are able to capture the lionshare of value created by individual consumers on the web. Pi levels the
playing field by allowing its members to pool their collective resources so they can get a share of the
value that they create.

The graphic below is the Pi Stack, where we see particularly promising opportunities for helping our
members capture value. Below, we go into each of these areas in more detail.

Introducing the Pi Stack – Unleashing underutilized resources

Pi Ledger And Shared Trust Graph – Scaling Trust Across The Web

One of the biggest challenges on the internet is knowing who to trust. Today, we rely on the rating
systems of providers such as Amazon, eBay, Yelp, to know who we can transact with on the internet.
Despite the fact that we, customers, do the hard work of rating and reviewing our peers, these internet
intermediaries capture the lionshare of the value created this work.

Pi’s consensus algorithm, described above, creates a native trust layer that scales trust on the web
without intermediaries. While the value of just one individual’s Security Circle is small, the aggregate of
our individual security circles build a global “trust graph” that help people understand who on the Pi
Network can be trusted. The Pi Network’s global trust graph will facilitate transactions between
strangers that would not have otherwise been possible. Pi’s native currency, in turn, allows everyone
who contributes to the security of the network to capture a share of the value they have helped create.

Pi’s Attention Marketplace – Bartering Unutilized Attention And Time

Pi allows its members to pool their collective attention to create an attention market much more
valuable than any individual’s attention alone. The first application built on this layer will be a scarce
social media channel currently hosted on the home screen of the application. You can think of the scarce
social media channel as Instagram with one global post at a time. Pioneers can wager Pi to engage the
attention of other members of the network, by sharing content (e.g., text, images, videos) or asking
questions that seek to tap into the collective wisdom of the community. On the Pi Network, everyone
has the opportunity to be an influencer or to tap into the wisdom of the crowd. To date, Pi’s Core Team
has been using this channel to poll the community’s opinion on design choices for Pi (e.g. the
community voted on the design and colors of the Pi logo.) We have received many valuable responses
and feedback from the community on the project. One possible future direction is to open the attention
market for any Pioneer to use Pi to post their content, while expanding the number of channels hosted
on the Pi Network.

In addition to bartering attention with their peers, Pioneers may also opt into bartering with companies
that are seeking their attention. The average American sees between 4,000 and 10,000 ads a day.
Companies fight for our attention and pay tremendous amounts of money for it. But we, the customers,
receive no value from these transactions. In Pi’s attention marketplace, companies seeking to reach
Pioneers will have to compensate their audience in Pi. Pi’s advertising marketplace will be strictly opt-in
only and will provide an opportunity for Pioneers to monetize one of their greatest untapped resources:
their attention.

Pi’s Barter Marketplace – Build Your Personal Virtual Storefront

In addition to contributing trust and attention to the Pi Network, we expect Pioneers to be able to
contribute their unique skills and services in the future. Pi’s mobile application will also serve as a Point
of Sales where Pi’s members can offer their untapped goods and services via a “virtual storefront” to
other members of the Pi Network. For example, a member offer up an underutilized room in their
apartment for rent to other members on the Pi Network. In addition to real assets, members of the Pi
Network will also be able to offer skills and services via their virtual storefronts. For example, a member
of the Pi Network could offer their programming or design skills on the Pi marketplace. Overtime, the
value of Pi will be supported by a growing basket of goods and services.
Pi’s Decentralized App Store – Lowering The Barrier Of Entry For Creators

The Pi Network’s shared currency, trust graph, and marketplace will be the soil for a broader ecosystem
of decentralized applications. Today, anyone that wants to start an application needs to bootstrap its
technical infrastructure and community from scratch. Pi’s decentralized applications store will allow
Dapp developers to leverage Pi’s existing infrastructure as well as the shared resources of the
community and users. Entrepreneurs and developers can propose new Dapps to the community with
requests for access to the network’s shared resources. Pi will also build its Dapps with some degree of
interoperability so that Dapps are able to reference data, assets, and processes in other decentralized
applications.

Scroll up

Governance

Governance - Cryptocurrency for and by the people

Challenges w/ 1st Generation Governance models

Trust is the foundation of any successful monetary system. One of the most important factors
engendering trust is governance or the process by which changes are implemented to the protocol over
time. Despite its importance, governance is often one of the most overlooked aspects of
cryptoeconomic systems.

First generation networks such as Bitcoin largely avoided formal (or “on-chain”) governance mechanisms
in favor of informal (or “off-chain”) mechanisms arising from a combination of role and incentive design.
By most measures, Bitcoin’s governance mechanisms has been quite successful, allowing the protocol to
grow dramatically in scale and value since its inception. However, there have also been some challenges.
The economic concentration of Bitcoin has led to a concentration of political power. The result is that
everyday people can get caught in the middle of destructive battles between massive holders of Bitcoin.
One of the most recent examples of this challenge has been the ongoing battle between Bitcoin and
Bitcoin Cash. These civil wars can end in a fork where or where the blockchain. For token holders, hard
forks are inflationary and can threaten the value of their holdings.

Pi’s Governance Model – a two-phase plan

In an article challenging the merits of on-chain governance, Vlad Zamfir, one of Ethereum’s core
developers, argues that blockchain governance “is not an abstract design problem. It’s an applied social
problem.” One of Vlad’s key points is that it is very difficult to design governance systems “a priori” or
before observations of the particular challenges arising from a specific political system. One historical
example is in the founding of the United States. The first experiment with democracy in the United
States, the Articles of Confederation, failed after an eight-year experiment. The Founding Fathers of the
United States were then able to draw upon the lessons of the Article of Confederation to craft the the
Constitution – a much more successful experiment.

To build an enduring governance model, Pi will pursue a two-phase plan.

Provisional Governance Model (< 5M Members)

Until the network hits a critical mass of 5M members, Pi will operate under a provisional governance
model. This model will most closely resemble “off-chain” governance models currently employed by
protocols like Bitcoin and Ethereum, with Pi’s Core Team playing an important role in guiding the
development of the protocol. However,, Pi’s Core Team will still rely heavily on the input of the
community. The Pi mobile application itself is where Pi’s core team has been soliciting community input
and engaging with Pioneers. Pi embraces community critiques and suggestions, which is implemented
by the open-for-comments features of Pi’s landing page, FAQs and Whitepaper. Whenever people
browse these materials on Pi’s websites, they can submit comment on a specific section right there to
ask for questions and make suggestions. Offline Pioneer meetups that Pi’s core team have been
organizing will also be an important channel for community input.

Additionally, Pi’s Core Team will develop more formal governance mechanics. One potential governance
system is liquid democracy. In liquid democracy, every Pioneer will have the ability to either vote on an
issue directly or to delegate their vote to another member of the network. Liquid democracy would
allow for both broad and efficient membership from Pi’s community.

Pi’s “Constitutional Convention” (> 5M Members)

Upon hitting 5M members, a provisional committee will be formed based on previous contributions to
the Pi Network. This committee will be responsible for soliciting and proposing suggestions from and to
the wider community. It will also organize a series of on- and offline conversations where Pi’s members
will be able to weigh on Pi’s long-term constitution. Given Pi’s global user base, the Pi Network will
conduct these conventions at multiple locations across the world to ensure accessibility. In addition to
hosting in-person conventions, Pi will also use its mobile application as a platform for allowing Pi’s
member to participate in the process remotely. Whether in-person or online, Pi’s community members
will have the ability to participate in the crafting Pi’s long-term governance structure.
Scroll up

Roadmap

Roadmap/Deployment Plan

Phase 1 – Design, Distribution, Trust Graph Bootstrap.

The Pi server is operating as a faucet emulating the behavior of the decentralized system as it will
function once its live. During this phase improvements in the user experience and behavior are possible
and relatively easy to make compared to the stable phase of the main net. All minting of coins to users
will be migrated to the live net once it launches. In other words, the livenet will pre-mint in its genesis
block all account holder balances generated during Phase 1, and continue operating just like the current
system but fully decentralized. Pi is not listed on exchanges during this phase and it is impossible to
“buy” Pi with any other currency.

Phase 2 – Testnet

Before we launch the main net, the Node software will be deployed on a test net. The test net will use
the same exact trust graph as the main net but on a testing Pi coin. Pi core team will host several nodes
on the test net, but will encourage more Pioneers to start their own nodes on the testnet. In fact, in
order for any node to join the main net, they are advised to begin on the testnet. The test net will be run
in parallel to the Pi emulator in phase one, and periodically, e.g. daily, the results from both systems will
be compared to catch the gaps and misses of the test net, which will allow Pi developers to propose and
implement fixes. After a thorough concurrent run of both systems, testnet will reach a state where its
results consistently match the emulator’s. At that time when the community feels its ready, Pi will
migrate to the next phase.

Phase 3 – Mainnet

When the community feels the software is ready for production, and it has been thoroughly tested on
the testnet, the official mainnet of the Pi network will be launched. An important detail is that, in the
transition into the mainnet, only accounts validated to belong to distinct real individuals will be
honored. After this point, the faucet and Pi network emulator of Phase 1 will be shut down and the
system will continue on its own forever. Future updates to the protocol will be contributed by the Pi
developer community and Pi’s core team, and will be proposed by the committee. Their implementation
and deployment will depend on nodes updating the mining software just like any other blockchains. No
central authority will be controlling the currency and it will be fully decentralized. Balances of fake users
or duplicate users will be discarded. This is the phase when Pi can be connected to exchanges and be
exchanged for other currencies.

Back to top

Whitepaper: December 2021 Chapters with March 2022 Rewards Issuance Formula

Token Model and Mining

Note: These 2021 Whitepaper chapters are an addendum to the original 2019 Whitepaper, with
additional information on Pi Network’s Mainnet launch.

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 cryptonative 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 to build and grow the
network and to incentivize the creation of a utilities-based ecosystem. Note that Pi is a layer one
cryptocurrency running on its own blockchain, which “token” here refers to.

Pi Supply

Pi Supply

Pi Network’s vision is to build the world’s most inclusive peer-to-peer ecosystem and online experience,
fueled by Pi, the world’s most widely used cryptocurrency. To deliver on this vision, it is important to
grow the network and make Pi widely accessible while maintaining the security of the blockchain and
long-term network incentives. While these goals have always guided the token supply model and mining
design, the key distinction is: the pre-Mainnet phases focused on driving network growth and widely
distributing Pi and the Mainnet phase will focus on rewarding more diverse forms of Pioneer
contributions necessary for ecosystem building and utilities creation.
Pre-Mainnet Supply

In the early stages, the focus of Pi Network was on growing and securing the network. Bootstrapping to
build a critical mass of participants is paramount to any network and ecosystem. Driven by the vision to
make Pi the world’s most widely used cryptocurrency, distributing Pi and making it accessible globally
further added to the focus on growth. Pi’s consensus algorithm relies on a global trust graph, which is
aggregated from the Security Circles of individual Pioneers. It was, therefore, critical to incentivize
Pioneers to form individual Security Circles. This meant a supply of tokens available as mining rewards
that was not explicitly capped before Mainnet.

At the same time, maintaining long-term network incentives is 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 have over 45 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
token 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.

Mainnet Supply

Supply fuels growth and incentivizes necessary contributions to the network to achieve an organically
viable ecosystem. To that end, mining rewards will continue after Mainnet but will take diverse forms to
incentivize different types of contributions, which will be explained in the Mining section below. In
regard to supply, the undetermined supply due to the pre-Mainnet mining mechanism that optimizes
for accessibility and growth of the network presents a few problems for the Mainnet phase, including
unpredictability in planning, over-rewarding and under-rewarding of different types of necessary
contributions in the new phase, and challenges to maintaining long-term network incentives. To address
these issues, the network will shift from its pre-Mainnet supply model that is completely dependent on
network behavior to the Mainnet supply model where there is a clear maximum supply.

The issue of unpredictability for planning in the pre-Mainnet supply model surfaced in Pi Network’s first
COiNVENTION in September-October 2020 where the community panel and community submissions
discussed whether mining should be halved or stopped at the network size of 10 million at the time. The
diverse voices of community members presented the following dilemma for the network. If mining
continued based on the ongoing (pre-Mainnet) mining mechanism, then it raised concerns with respect
to Pi’s ability to provide long-term network incentives. However, if mining stopped, it would hurt the
growth of the network and prevent new Pioneers joining the network as miners, thereby undermining
the accessibility of Pi. Even though the network moved on from that decision and halved the mining
rate at its 10 Million size, this dilemma still remains and needs to be resolved.

How the community can achieve continued growth and accessibility while addressing concerns about
supply is one of the main factors considered in the design of the Mainnet token model. In addition, the
undefined and unpredictable total supply makes it hard to have overall network token planning because
the community as a collective and the ecosystem itself have needs to use some Pi for purposes that
benefit the community and ecosystem as a whole, other than only mining rewards for individuals, as
evidenced by almost every other blockchain network. Clear allocations for such collective community
purposes need to be defined. Hence, given the current network size of over 30 million Pioneers and the
expected volume of transactions and activities in the future, the Mainnet supply model has a clear
maximum total supply of 100 billion Pi allowing incentivizations of continued growth and new
contributions while removing the concerns about the unpredictability of the supply.

The supply distribution will honor the original distribution principle in the March 14, 2019 Whitepaper—
the Pi community has 80% and the Pi Core Team has 20% of the total circulating supply of Pi, regardless
of how much circulating supply there is in the Pi Network at any given point in time. Thus, given a total
max supply of 100 billion Pi, the community will eventually receive 80 billion Pi and the Core Team will
eventually receive 20 billion Pi. The following pie chart depicts the overall distribution. The Core Team’s
allocation gets unlocked at the same pace as the community progressively mines more and more Pi and
may be subject to additional lockup through a self-imposed mandate. This means that if the community
has a portion of its allocation in circulation (for example, 25%), only the proportional amount in Core
Team’s allocation (in this example, 25%) can get unlocked at most.
This distribution above shows that Pi Network does not have any allocation for ICO and is NOT running
any type of crowdfunding sales of Pi. Thus, any impersonation of Pi Network or its founders to conduct a
sale or listing is illegal, unauthorized and fake. These impersonators have no affiliation with Pi Core
Team. Pioneers should beware of any scams and not participate. Pi can be mined freely by contributing
to the ecosystem. Further, all mined Pi can only be claimed from inside the Pi App through the Mainnet
dashboard and then transferred into your Pi wallet. Any website asking Pioneers to claim Pi in other
means is fake.

The 80% of the community supply is further divided into: 65% allocated for all past and future Pioneer
mining rewards, at address GBQQRIQKS7XLMWTTRM2EPMTRLPUGQJDLEKCGNDIFGTBZG4GL5CHHJI25
on the Mainnet, 10% reserved for supporting community organization and ecosystem building that will
eventually be managed by a Pi Foundation, a non-profit organization in the future, at address
GDPDSLFVGEPX6FJKGZXSTJCPTSKKAI4KBHBAQCCKQDXISW3S5SJ6MGMS, and 5% reserved for the
liquidity pool to provide liquidity for Pioneers and developers in the Pi ecosystem at address
GB7HLN74IIY6PENSHHBBJJXWV6IZQDELTBZNXXORDGTL75O4KC5CUXEV. The following table depicts the
community supply distribution:

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 prohibiting the migration of the Pi in fake accounts (as discussed in the subsections “The
Effect of KYC on Mainnet rewards” and “KYC Verification and Mainnet Balance Transfer” below) 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 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 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, 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 developer 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.
Scroll up

Mining Mechanism

Mining Mechanism

Pi Network’s mining mechanism has been allowing Pioneers to contribute to the growth, distribution
and security of the network and be rewarded in Pi meritocratically. The pre-Mainnet mining mechanism
has helped the network achieve an impressive growth of over 35 million engaged members, a widely
distributed currency and Testnet, and a trust graph of Security Circle aggregates that will feed the
consensus algorithm of the Pi blockchain.

Looking ahead into the Mainnet phase, Pi Network needs further contributions, as well as more diverse
types of contributions from all its members, to become a true ecosystem while continuing its growth
and inclusion. In the Mainnet phase, we want to further achieve decentralization, utilities, stability and
longevity, in addition to growth, inclusion, and security. These goals can only be achieved if all Pioneers
in the network work together. Hence, the new Pi mining mechanism is designed to achieve these goals
by incentivizing all Pioneers to contribute diversely to the network based on the same meritocratic
principle. Below, we first describe the pre-Mainnet mining formula, followed by the changes in the
Mainnet formula. The Mainnet mining formula went into effect in March, 2022 – during the Enclosed
Mainnet period of the Roadmap that started on December 28, 2021.

Pre-Mainnet Formula

The pre-Mainnet mining formula demonstrates a meritocratic determination of a Pioneer’s hourly

mining rate. Actively mining Pioneers received at least a minimum rate and were further rewarded for
their contributions to security and growth of the network. The following formula determined the rate at
which Pioneers mined Pi per hour:

M = I(B,S) + E(I), where

M is the total Pioneer mining rate,

I is the Individual Pioneer base mining rate,

B is the systemwide base mining rate,

S is the Security Circle reward, which is a component of the individual Pioneer base mining rate from
valid Security Circle connections, and

E is the Referral Team reward from active Referral Team members.

The systemwide base mining rate B started as 3.1415926 Pi/h and halved every time the network of
Engaged Pioneers increased in size by a factor of 10x, starting at 1000 Pioneers. As listed below, there
have been five halving events thus far:

Here,

I(B,S) = B + S(B)

S(B) = 0.2 • min(Sc,5) • B, where

Sc is the count of valid Security Circle connections.

E(I) = Ec • I(B,S) • 0.25, where

Ec is the count of active Referral Team members who mine concurrently.

The mining formula can also be written as a multiple of B:

M = I(B,S) + E(I)

M = + , or

M = + , or

M = B • , or

M=B•

Pre-Mainnet Systemwide Base Mining Rate

Every active Pioneer received at least the systemwide base mining rate (B). That is, if Sc = 0 and Ec = 0 in
the mining formula above, then M = B. In any case, the total Pioneer mining rate was a multiple of the
systemwide base mining rate. The value of B was pre-determined before the Mainnet, and as shown in
the table above, it changed only five times. The max supply was undetermined due to the dynamic
progress of the pre-Mainnet mining mechanism, e.g. how large the network is and how fast the network
reaches the next halving event. It would only be determined when B dropped to 0. However, as
explained in the next section, the value of B at Mainnet is calculated in real time, dynamically adjusting
based on the total annual Pi supply and the total mining coefficient across all the Pioneers. The supply of
Pi is finite at Mainnet.

Security Circle Reward

Pi’s consensus algorithm relies on a global trust graph, which is aggregated from the millions of
intertwining Security Circles of individual Pioneers. Thus, a Pioneer was rewarded with additional Pi per
hour for each new valid Security Circle connection, up to 5 such connections. The Security Circles are so
central to the security of the Pi blockchain that the Security Circle reward raised the total Pioneer mining
rate in two ways:

by directly adding to the individual Pioneer base mining rate (I), and

by boosting the Referral Team reward, if any.

In fact, a full Security Circle—that is, having at least five valid connections—doubled both the individual
Pioneer base mining rate and the Referral Team reward.

Referral Team Reward

Pioneers can also invite others to join Pi Network and form their Referral Team. The inviter and invitee
share an equal split of the Referral Team bonus rewards, that is a 25% boost to their respective
individual Pioneer base mining rates, whenever both are mining concurrently. Pioneers mined more Pi
per hour with each concurrently mining Referral Team member. This Referral Team reward recognized
the Pioneers’ contribution to the growth of the network and the distribution of the Pi token.

Mainnet Mining Formula

The goals of the Mainnet phase are to make further progress in decentralization and utilities, ensure
stability and longevity, and retain growth and security. The new formula, as written below, incentivizes
more diverse contributions of Pioneers to support these Mainnet goals while retaining the incentives to
secure and grow the network. As before, it is meritocratic and expressed as the rate at which Pioneers
mine Pi per hour.
M = I(B,L,S) + E(I) + N(I) + A(I) + X(B), where

M is the total Pioneer mining rate,

I is the individual Pioneer base mining rate,

B is the systemwide base mining rate (adjusted based on the available pool of Pi to distribute for a given
time period),

L is the lockup reward, which is a new component of the individual Pioneer base mining rate,

S is the the Security Circle reward, which is a component of the individual Pioneer base mining rate from
valid Security Circle connections the same way as in the pre-Mainnet mining formula,

E is the Referral Team reward from active Referral Team members the same way as in the pre-Mainnet
mining formula,

N is the Node reward,

A is the Pi apps usage reward, and

X are new types of contributions necessary for the network ecosystem in the future, which will be
determined later, but will also be designed as a multiple of B.

In short, S and E remain the same as in the pre-Mainnet mining formula, while new rewards such as L, N
and A have been added to the current formula. L is added as part of I; N and A are added as additional
rewards calculated based on I. In other words, the network still rewards growth through E and security
through S, while incentivizing Pioneers’ contributions to running nodes for decentralization through N,
using apps for utilities creation through A, and locking up for stability especially during the initial years
through L. Further, new types of rewards to Pioneers through X in the future may be added for building
a fully functioning ecosystem, such as rewards for Pioneer developers creating successful Pi apps. B
continues to exist over a long period of time while having a yearly cap to ensure longevity of network
growth bywhile maintaining long-term network incentives. In fact, all the rewards can be expressed in B
as follows.

Here,

I(B,L,S) = B + S(B) + L(B)

S(B) = 0.2 • min(Sc,5) • B, where

Sc is the count of valid Security Circle connections.

E(I) = Ec • 0.25 • I(B,L,S), where

Ec is the count of active Referral Team members.

L(B) = Lt • Lp • log(N) • B, where

Lt is a multiplier corresponding to the duration of a lockup,

Lp is the proportion of Pioneer’s mined Pi on the Mainnet that is locked up with the maximum being
200%, and

N is the total number of Pioneer’s mining sessions preceding the current mining session.

N(I) = node_factor • tuning_factor • I, where

Node_factor = Percent_uptime_last_1_days • (Uptime_factor + Port_open_factor + CPU_factor), where

Uptime_factor = (Percent_uptime_last_90_days + 1.5*Percent_uptime_last_360_days(360-90) + 2*

Percent_uptime_last_2_years + 3*Percent_uptime_last_10_years),

Port_open_factor = 1 + percent_ports_open_last_90_days + 1.5*percent_ports_open_last_360_days +

2* percent_ports_open_last_2_years + 3*percent_ports_open_last_10_years,

CPU_factor = (1 + avg_CPU_count_last_90_days + 1.5*avg_CPU_count_last_360_days + 2*

avg_CPU_count_last_2_years + 3*avg_CPU_count_last_10_years)/4.

and

Percent_uptime_last_*_days/years is the percentage of the last * time period when the individual Node
was live and accessible by the network.

percent_ports_open_last_*_days/years is the percentage of the last * time period when the ports of the
individual Node were open for connectivity to the network.

avg_CPU_count_last_*_days/years is the average CPU that the individual Node provided to the network
during the last * time period.
tuning_factor is a statistical factor that normalizes the node_factor to a number between 0 and 10.

time_spent_per_app_yesterday_in_seconds is, for each Pi app, the total amount of time in seconds that
the Pioneer spends using the app on the prior day.

Σ_across_apps sums up the logarithmic value of the Pioneer’s

time_spent_per_app_yesterday_in_seconds across all the Pi apps.

avg_daily_time_spent_across_apps_last_*_days/years is the average daily time in seconds the Pioneer

spends across all the Pi apps in the aggregate during the last * time period.

* Note that when any of the logarithmic functions returns an undefined value or a value below 0 (that is,
when, the input to the logarithmic function is below 1), the formula resets the value of the logarithmic
function to be 0 in order to avoid negative mining rewards or an error in the function.

X(B) is to be determined in the future based on the new types of contributions, but will be a multiple of
B and kept within the yearly supply limit along with other rewards.

As shown above, the expressions of S and E remain the same as in the pre-Mainnet mining formula, and
will not be explained further here. Next, we will focus on explaining the changes to B, changes to I
through L, and the additions of N and A.

Systemwide Base Mining Rate

Like in Pre-Mainnet mining, all of the terms in the Mainnet mining formula above can be expressed in Pi
per hour and are designed to be a multiple of B. Hence, the equation can also be re-written as below.
Every Pioneer can mine at least the Systemwide Base Mining Rate everyday, and will be able to mine at
a higher rate if they also have other types of contributions that are calculated as multiples of B.

M = B • (1 + S + L) • (1 + N + E + A + X)

Unlike in the pre-Mainnet mining, B in Mainnet mining as in the formula above is no longer a constant
across all Pioneers at a given point in time, but is calculated in real time and dynamically adjusted based
on a yearly supply cap.
Given a yearly supply limit, it is impossible to keep a constant B like in the pre-Mainnet period because
it’s unpredictable how much each Pioneer mines and how many Pioneers are actively mining during a
period of time. The pre-Mainnet model was designed to incentivize growth during the beginning years
to bootstrap the network. As the network achieves a certain scale, it also needs to ensure the overall
health of the ecosystem. Therefore, an exponential issuance of the tokens through exponential network
growth and a constant mining rate does not make sense any longer. The shift of B from being a constant
to being dynamically adjusted for a certain period of time throughout the year results from the need to
incentivize Pioneers’ contributions meritocratically but also to keep the total rewards within a limit.

The time period for adjusting B could be yearly, monthly, daily, hourly, or even more granular. Pi
Network will iterate on this time period over time based on careful monitoring and review.

The first version of the Rewards Issuance Formula was announced March 1st 2022—the declining
exponential function described below—whereby in combination with mining activities, the systemwide
base mining rate (B) is adjusted based on a monthly supply limit determined by the formula.

Please note that the declining exponential formula below is the first version of the Rewards Issuance
Formula, as it is impossible to precisely predict the future data on Mainnet and from new mining. This
first version was designed based on past data, simulations and best assumptions, such as the 35 billion
remaining supply for future mining rewards, Pioneer lockups and overall ecosystem factors. For
example, the 35 billion remaining Pi is estimated based on the currently available data about real
Pioneers’ mobile balances. A more accurate figure will be determined by the speed of network KYC and
how much Pi is migrated to the Mainnet in the future. Further data and continual simulations will help
assess such underlying assumptions in the rewards issuance formula, and thus may lead to the formula’s
adjustment in line with the network’s objectives.

supply_limits (expressed in Pi/day) = exp (–last_day_total_mining_rewards / 1220) • 35,000,000,000,

where

supply_limits are the output of this formula that allocates a specific amount of Pi to each day for the
indefinite time while making sure the total future issuance will not exceed the remaining available
supply,

last_day_total_mining_rewards is equal to the total Pi mining rewards issued on the previous day,
1220 is a tuning factor to be further tuned over the coming months, and

35 billion is the estimated number of Pi available for Pioneers to mine going forward.

This monthly B means that that B will stay constant for a month and will be adjusted based on the
rewards issuance formula and the network’s mining activities at the end of each month. Starting with a
B that stays constant for a month helps Pioneers understand the implications of 1) new supply limits, 2)
the new mining mechanism with new rewards, and 3) a more dynamic nature of B (potentially in the
future) one at a time, given that these concepts are complex and all have an effect on Pioneers’ mining
rewards. At the same time, a monthly period is short enough to correct any potential over- or under-
issuance of Pi deviating from the rewards issuance formula while B is stable long enough for Pioneers to
follow along and adjust their contributions to the network to mine for rewards.

Each month’s B is calculated based on the supply limit for the month based on this formula and the sum
of all reward coefficients of all active Pioneers from the last day of the previous month. This B updates
again on the first day of every month.

More specifically, the value of B for a given month is calculated by:

Summing up the daily supply_limits for the month from the above rewards issuance formula

Dividing it by the number of days in the month for even daily allocation within the month

Dividing it again by the sum of coefficients (sum_of_B_multiples) of mining rewards of all active Pioneers
of the last day of the previous month—including their multiples of Referral Team, Security Circle, Pi
Lockup, App usage, and Node Operation rewards

Similar iterations occur each month.

When B stays constant in a month, the total number of Pi actually mined every month varies with the
total number of actively mining Pioneers and the contributions they make in that month. At the end of
the month, the total number of Pi actually mined will be compared with the number initially projected
by the formula. Any deviation between the two numbers each month will lead to a further adjustment
on the remaining Pi supply, across the remaining indefinite mining period, along with any other types of
adjustments explained above, e.g. the assumed 35 billion remaining mining rewards supply.
As such, the monthly B can potentially cause an overissuance of Pi when there is an unexpected increase
in the number of Pioneers and their mining rates, leading to a deviation from the rewards issuance
formula. If such deviation on a monthly basis is constantly large, the network can move to a more
dynamic version of the B model where the monthly issuance of Pi remains constant but B gets adjusted
on a more granular time epoch basis. The shorter the time period for adjusting B to follow the formula,
the less is the potential for over- or under-issuance against the targeted supply limits, and the less is the
chance for deviation from the formula over that period. More data on Mainnet and the new mining
mechanism will help examine the efficacy of the current monthly dynamic B and determine if a more
dynamic version B is necessary.

For example, if the B is calculated daily, instead of the current monthly version, for a given day of the
year,

B = day_supply / (sum_of_B_multiples • 24h)

Divide the remaining total Pi supply of the year by the number of days left in the year to get day_supply
based on the remaining yearly supply,

Add the multiples of B from all Pioneers actively mining within the last 24 hours, which represents a
diverse set of Pioneers’ contributions, in the Mainnet mining formula above to get the
sum_of_B_multiples of the whole network for that 24-hour window, and

Further divide day_supply by sum_of_B_multiples and 24 hours to get B of that specific mining session.

Under this potential framework with a day as the unit of time for adjustment, B on different days of the
year will be different depending on how many Pioneers mined in the last 24 hours as well as what and
how much contributions they made to receive the extra multiples of B by running nodes, using utilities
apps or lockups, etc. Each Pioneer’s B of their day stays constant through their mining session, that is,
over the next 24 hours from the moment they start their mining session.

This model, whether it is monthly, daily or by more granular time periods, also addresses any
uncertainty with having X(B)—future types of contribution rewards for Pioneers—in the formula.
Regardless of how much X is going to be, it will be kept within the same yearly supply limit without
increasing the total supply and will only affect the division of rewards among different types of
contributions. This dynamic mechanism allows Pioneers themselves, in a decentralized way, to make
sure that (1) the rewards do not exceed the yearly supply limit, (2) the distribution of the yearly supply
does not end early in the year, and (3) the rewards are divided meritocratically.
For purposes of illustration, let’s suppose there are only two Pioneers on a given day and B is the daily
mining rate (expressed in Pi/day for this illustration)—a constant during a specific Pioneer mining
session, but dynamically adjusted across different days:

Pioneer 1 has no app engagement (A=0), is not operating a Node (N=0), has no security connections
(S=0), and has no active Referral Team members (E=0). They are in their 11th mining session (N=10) and
are locking up 100% of their mined Pi (Lp=1) for 3 years (Lt=2). Pioneer 1’s mining rate on this day is:

M1 = I(B,L,S) + 0 + 0 + 0, or

M1 = B + {2 • 1 • log(10)} • B + 0, or

M1 = 3B

Pioneer 2 has no app engagement (A=0), is not operating a Node (N=0), has no lockup (L=0), and has no
active Referral Team members (E=0). They have a full Security Circle. Pioneer 2’s mining rate on this day
is:

M2 = I(B,L,S) + 0 + 0 + 0, or

M2 = B + 0 + {0.2 • min(Sc,5) • B}, or

M2 = B + {0.2 • 5 • B}, or

M2 = 2B

Here, Total Pi to be mined in the whole network on this day = M1 + M2 = 5B

Let’s assume there are 500 Pi and 50 days left in the year.

Therefore, Total Pi available to be mined for this day = 500 Pi / 50 days = 10 Pi/day
Solving B based on the two equations above,

5B=10 Pi ⇒ B = 2 Pi/day (or 0.083 Pi/hour)

Accordingly, Pioneers 1 and 2 will have their actual mining rates as follows:

M1 = 3 • 2 Pi/day = 6 Pi/day (or 0.25 Pi/hour)

M2 = 2 • 2 Pi/day = 4 Pi/day (or 0.17 Pi/hour)

Pioneer Base Mining rate

By comparison, the individual Pioneer base mining rate in the pre-Mainnet mining formula includes only
system-wide base mining rate and Security Circle rewards. At Mainnet, a new component, lockup
reward, is added to individual Pioneer base mining rate I. Lockup rewards L, along with the system-wide
base mining rate B and Security Circle reward S, constitute the individual Pioneer base mining rate I.
Since I is used as an input to calculate all the other rewards, as a result, the Security Circle and lockup
rewards enhance the total Pioneer mining rate by: (1) by directly adding to the individual Pioneer base
mining rate and (2) by boosting the any Referral Team reward E, nodes reward N, and app usage reward
A.

Lockup Reward

At Mainnet, the lockup reward is meant to support a healthy and smooth ecosystem and incentivize
long-term engagement with the network, while the network is bootstrapping and creating utilities. It is
an important decentralized macroeconomic mechanism to moderate circulating supply in the market,
especially in the early years of the open market when utilities are being created. One important goal of
the Pi Network is to create a utility-based ecosystem of apps. Transactions for real goods and services in
the ecosystem, rather than just speculative trading, are intended to determine the utility of Pi. As we
launch the Enclosed Network phase of the Mainnet, one of the main areas of focus will be to support
and grow the Pi app developer community and nurture more Pi apps to grow. In the meantime, Pioneers
can choose to lock up their Pi to help create a stable market environment for the ecosystem to mature
and for more Pi apps to emerge and provide compelling use cases for spending Pi – to ultimately create
organic demands through utilities.

The lockup reward formula is reprinted here:

L(B) = Lt • Lp • log(N) • B, where

Lt is the Lockup Time period multiplier of B.

0 → Lt = 0

2 weeks → Lt = 0.1

6 months → Lt = 0.5

1 year → Lt = 1

3 years → Lt = 2

Lp is the Lockup Percentage multiplier of B, where

the Lockup Percentage is the lockup amount over the Mainnet Balance transferred from one’s previous
mining rewards (Lb), and the Lockup Percentage multiplier is as follows.

0% → Lp = 0

25% → Lp = 0.25

50% → Lp = 0.5

90% → Lp = 0.9

100% → Lp = 1.0
 150% → Lp = 1.5

200% → Lp = 2

log(N) is the logarithmic value of the total number of previous mining sessions (N).

Pioneers will have the opportunity to voluntarily lock up their Pi to earn the right to mine at a higher
rate. First of all, the prerequisite of the lockup reward is that the Pioneer must be actively mining.
Without mining in the first place, there will be no lockup rewards for any inactive mining sessions, even
if Pi is locked up. As expressed in the formula above, all that the lockup does is to provide multipliers to
B, so there will be no lockup rewards if B is 0 (which means the Pioneers is not mining).

Secondly, the lockup reward is positively associated with the contribution to the lockup, i.e. the duration
of the lockup time period (Lt) and the amount locked up. However the lockup amount is accounted for
by the percentage of a Pioneer’s total Pi mined (Lp). The maximum Pi that a Pioneer can lock up is twice
as much as their Mainnet Balance that got transferred from their prior mining in the mobile app (Lb), i.e.
200% Lb. The reasons for having a 2X maximum lockup amount of one’s transferred Mainnet Balance
(Lb) are to 1) prevent exploitation of the lockup reward and 2) further encourage other contributions to
the Pi ecosystem, such as further boosting their mining, running nodes and using apps. This, in a sense,
favors Pioneers who mine and make other types of contributions to the network.

Thirdly, Log(N) offers a higher lockup incentive to Pioneers who have a long mining history and
presumably a large transferable balance to lock up. While the lockup reward formula generally favors
equality by accounting for not the absolute amount but the percentage of their transferred balance (Lp)
— which allows smaller accounts with a short mining history to lock up small amounts and yet receive
the same lockup reward multiplier as big accounts — we need to add a Log(N) factor that accounts for
miners with a long mining history, to counterbalance the bias in favor of Pioneers with small balances
and provide enough incentive for long-history Pioneers with bigger balances. However, the effect of
mining history on lockup rewards also needs to be capped. Thus, the formula applies a logarithm to the
number of previous mining sessions N. For example, if a Pioneer mined almost everyday for the last 3
years, their total previous mining sessions (N) will be about 1,000. In this scenario, Log(1,000) equals 3,
adding another multiplier to B in their lockup rewards. Keep in mind that to achieve meaningful lockup
rewards for long-mining-history Pioneers, the amount of Pi they have to lock up is much more than
smaller accounts. Fourthly, one Pioneer can voluntarily have multiple lockups at different times with
different amounts and durations. The calculation of the total lockup rewards for this Pioneer with i
number of different lockups is to find the total lockcup reward multiplier of B, as expressed in the
formula below. The formula below is the equivalent to the lockup reward formula above, with the only
difference being that it accounts for multiple lockups of the same Pioneer to calculate their total lockup
rewards, e.g. different durations (Lti) and different amounts (Lci) of each lockup at different time:

The purpose of this formula is to calculate the total lockup rewards based proportionally on each
lockup’s amount (Lc) over the total Mainnet Balance from previous mining (Lb) as a weight, multiplied
by their respective lockup time period (Lt) and Log(N). So that, even though there are multiple lockups of
the same Pioneer, more lockups with different settings will proportionally add to their total lockup
rewards. The values of Lt, Lc, and log(N) are calculated and multiplied for each lockup i and then
summed across various i’s, which is then divided by the value of Lb at a given mining session, to arrive at
the value of L(B) for that mining session. This formula ensures that regardless of the Lb, as long as the
Pioneer maintains the same percentage of their lockup amount over their Lb, the total lockup rewards
multiplier will remain the same.

Lastly, when can a Pioneer lock up Pi? Pioneers can decide their lockup duration and lockup percentage
of their transferable balance anytime they want as an overall account setting in the Pi app. They can
even preselect these settings before they’re KYC’ed or ready to migrate to the Mainnet. As they and
their Referral Team/Security Circle pass KYC, more of their Mobile Balance will become transferable. At
the moment of the migration of their Transferable Balance to Mainnet, their preselected setting of
lockup duration and percentage will automatically apply to the amount of balance transferred, resulting
in two types of balances on the Mainnet: lockup balance and free balance, both of which will be
recorded on the Mainnet blockchain and reside in the Pioneer’s non-custodial Pi wallet. Thus, lockups
cannot be reversed once confirmed and must remain locked up for the entirety of the chosen duration
due to the nature of blockchain. Any changes to this Pioneer’s lockup setting will take effect in their next
balance transfer to the Mainnet.

This account-wide lockup setting allows Pioneers to lock up a maximum of 100% of their transferable
balance from mobile to Mainnet. After Mainnet launches and Pioneers transfer their balances, Pioneers
can also lock up more Pi directly on the Mainnet through a slightly different lockup interface later on. At
that time, Pioneers can lock up as much as 200% of their already-transferred Mainnet balance acquired
from their previous mining. The additional lockup allowance for more Pi than individually mined by the
Pioneer can come from utility-based Pi apps transactions, i.e., making Pi from selling goods and services.

App Usage Reward

An overarching goal of Pi Network is to build an inclusive peer-to-peer ecosystem and online experience
fueled by the Pi cryptocurrency through our app ecosystem. Therefore, Pioneers will have additional
mining rewards for using Pi apps on the Pi apps platform through the Pi Browser, including ecosystem
apps and third-party apps in the Pi Directory. The app usage reward for Pioneers helps the ecosystem in
two ways.

First, it will give Pi app developers market access and increased impressions of their apps. Pi app
developers will gain usage and product iteration opportunities from Pioneers, which has been one of the
biggest barriers to creating viable decentralized applications in the blockchain industry. Decentralized
application (dApp) developers do not yet have a plentiful, stable, and utility-seeking consumer market
environment to test and hone their consumer products to create consumer utilities. Pi Network’s apps
platform and the app usage reward are meant to provide that environment for dApp developers.

Second, the increased impressions and usage will potentially lead to increased spending of Pi by
Pioneers in the Pi apps. Even though the impressions are incentivized through the app usage reward, the
spending of Pi is not. This means that the Pi app usage reward to Pioneers helps the Pi app developers to
the extent that Pioneers are at their door. Now what determines whether Pioneers will actually stay and
spend Pi in their apps is how useful and engaging their products and apps are. This framework ensures
that these apps are able to compete on the basis of product quality and utility, ultimately allowing the
best apps to emerge and stay in the ecosystem.

Through the above two mechanisms, the app usage reward aims to achieve the gradual transition from
extrinsic incentives to intrinsic motivations among Pioneers visiting Pi apps, and thus the transition from
incentivized to organic usage of Pi apps in order to ultimately bootstrap a utility-based ecosystem of
apps using Pi.

The app usage reward formula is reprinted here:

time_spent_per_app_yesterday_in_seconds is, for each Pi app, the total amount of time in seconds that
the Pioneer spends using the app on the prior day.
Σ_across_apps sums up the logarithmic value of the Pioneer’s
time_spent_per_app_yesterday_in_seconds across all the Pi apps.

avg_daily_time_spent_across_apps_last_*_days/years is the average daily time in seconds the Pioneer

spends across all the Pi apps in the aggregate during the last * time period.

* Note that when any of the logarithmic functions returns an undefined value or a value below 0 (that is,
when, the input to the logarithmic function is below 1), the formula resets the value of the logarithmic
function to be 0 in order to avoid negative mining rewards or an error in the function.

Generally, the app usage reward formula takes into account two factors: time spent in apps and the
number of apps used while crediting the history of app usage in the long term and capping the rewards
to avoid exploitation. There are two main parts to the formula. The first part aggregates a Pioneer’s time
spent across each app in the last mining session (i.e., in the previous day). The logarithmic function
provides a positive function with diminishing rewards, meaning that an increase in time spent on any
one app will generally increase the rewards, but the positive effect of time spent on rewards decreases
as more time is spent. This setup encourages Pioneers to generally spend more time on multiple diverse
apps, helping the network to bootstrap the creation of diverse utilities. At the same time, it caps the
rewards to prevent users from exploiting this reward by artificially keeping the apps open all day, which
would not meaningfully contribute to utilities creation.

The second part of the app usage reward formula looks at a Pioneer’s rolling average of daily time spent
across all apps in various time periods. The further back the time period goes, the less it is weighted. In
other words, a Pioneer mines more Pi the longer they have been using the Pi apps, but their recent time
spent on the apps counts more toward mining than their previous time spent further back in the past. In
addition, as a matter of fact, the app usage history takes effect on the current mining reward only if the
Pioneer also used Pi apps during their last mining session. This means that there is no passive reward for
only the past usage. Once again, the use of logarithmic functions helps moderate the mining boost from
app usage to avoid exploitation of the app usage reward. A noteworthy implication here is that Pi chat
moderators who have been helping to guide Pioneers and monitor undesirable activities on Pi chats over
the last two years will mine the app usage reward at a higher rate when the Mainnet launches.

Node Reward

Like on any blockchain, Nodes are at the heart of the decentralization of Pi. In Pi, instead of relying on
centralized institutional nodes, we decided to open up the Nodes to any Pioneer with a computer
connected to the internet. Aided by the global trust graph aggregated from individual Pioneer’s Security
Circles from the mobile app, these Nodes will run the consensus algorithm to validate transactions and
process blocks. Because the Nodes are critical to the decentralization, security, and longevity of the Pi
blockchain, Node-operating Pioneers will receive additional mining rewards.

The node reward formula is reprinted here:

N(I) = node_factor • tuning_factor • I, where

Node_factor = Percent_uptime_last_1_days • (Uptime_factor + Port_open_factor + CPU_factor), where

Uptime_factor = (Percent_uptime_last_90_days + 1.5*Percent_uptime_last_360_days(360-90) + 2*

Percent_uptime_last_2_years + 3*Percent_uptime_last_10_years),

Port_open_factor = 1 + percent_ports_open_last_90_days + 1.5*percent_ports_open_last_360_days +

2* percent_ports_open_last_2_years + 3*percent_ports_open_last_10_years,

CPU_factor = (1 + avg_CPU_count_last_90_days + 1.5*avg_CPU_count_last_360_days + 2*

avg_CPU_count_last_2_years + 3*avg_CPU_count_last_10_years)/4.

and

Percent_uptime_last_*_days/years is the percentage of the last * time period when the individual Node
was live and accessible by the network.

percent_ports_open_last_*_days/years is the percentage of the last * time period when the ports of the
individual Node were open for connectivity to the network.

avg_CPU_count_last_*_days/years is the average CPU that the individual Node provided to the network
during the last * time period.

tuning_factor is a statistical factor that normalizes the node_factor to a number between 0 and 10.

The node reward depends on the uptime factor, port open factor, CPU factor, and the tuning factor. The
uptime factor of a Node for a given period of time is the proportion of time the Node is active during
that period. For example, a 25% uptime factor yesterday means that the Node was live and accessible
for a total of 6 out of 24 hours yesterday. The Pi Node software tracks the time a particular Node is
active. Starting in the Open Network phase, only a Node running functionally at a given point in time is
considered active. This is a proxy for the reliability of the Node. However, for the historical data relevant
to the mining reward, a Node is considered active if the Node app is open and connected to the internet
even if it is not running functionally. This exemption for the past performance recognizes that the
Community Node operators running the Testnet provided the network with important data and
infrastructure to enable multiple iterations of the Node software and Testnet, and that it was not always
the fault of the Node operator that their Nodes were inoperative.

The port open factor of a Node for a given period of time is the proportion of time the Node’s specific
ports are detected to be accessible from the Internet during that period. Pi Nodes use ports 31400
through 31409, enabling other nodes to reach them through these ports and the network IP address. An
open-port Node is able to respond to communications initiated by other Nodes, while closed-port Nodes
are not able to receive such communications from other Nodes and can only initiate communications.
Pi’s consensus protocol relies on Nodes sending a series of messages among each other. Therefore,
open-port Nodes are critical to the operation of the Pi blockchain, and thus, worthy of a mining reward
boost. In fact, the network aims to have at least 1/8th of the Nodes with open ports, and having an open
port is one of the prerequisites for being a Super Node.

The CPU factor of a Node for a given period of time is the average number of CPU cores/threads
available on the computer during that period. A higher CPU factor prepares the blockchain for future
scalability, for example, the ability to process more transactions per block or more transactions per
second. The Pi blockchain is not an energy and resource-intensive blockchain. The network is initially set
to operate at one new block of up to 1,000 transactions (T) about every 5 seconds. Thus the network is
effectively capable of processing up to about 200 transactions per second (TPS) or ~17M T/day. Should
the blockchain get congested in the future, this limit can be increased to 2,000 TPS (~170M T/day) by
increasing the block size from 1000 to 10,000 transactions per block. The higher the CPU contributed by
Pi Nodes, the more room the network will have to grow and scale further in the future. Furthermore,
higher collective CPU from Pi Nodes will allow novel peer-to-peer node-based applications to be built on
Pi Network, such as decentralized CPU sharing applications that let computing power-intensive
applications run or provide distributed cloud services. Such services will be further rewarding
contributing nodes with additional Pi paid by the clients of those services.

Finally, a tuning factor normalizes the Node reward to a number between 0 and 10. This is meant to
make Node rewards comparable to other types of mining rewards that recognize other contributions to
Pi Network. During the Enclosed Mainnet phase (as explained in the Roadmap section), the Node reward
formula is expected to iterate. For example, the use of logarithmic or root functions may potentially
obviate the need for a tuning factor.

Having reliable Nodes running predictably over a long stretch of time is critical to the health of the
blockchain. It is not a one and done contribution. Therefore, the uptime factor, port open factor, and
the CPU factor are all calculated over varying time periods, where the value from more recent time
periods are more heavily weighted than the time periods of equal lengths from a more distant past.
Note, however, that the Node reward is a multiple of the uptime factor of the previous mining session.
Hence, a Pioneer will not receive any Node reward in a given mining session if their Node was inactive
for the entirety of the immediately preceding calendar day. Similar to the app usage reward, there is no
passive reward for only the past contribution as a Node operator. This also means that a low uptime
factor in the previous calendar day (even if the Node is active for a part of the day) will substantially
reduce the Node reward in a given day despite high past Node contributions.

The Effect of KYC on Mainnet rewards

There will be a rolling grace period of six calendar months for a Pioneer to complete KYC. Thereafter, the
Pi mined outside of the rolling 6-month window will not be transferable to the Mainnet, and will instead
be reallocated to Pioneer mining rewards, as discussed below. The retention of the mined Pi in the 6-
month window continues indefinitely until they pass KYC or the KYC policy changes. Note that this KYC-
window mining framework will only begin when the KYC solution is generally available to all eligible
Pioneers in the future, and will be announced to the community beforehand. The six-month restriction
will not be immediately in place yet when we launch the Mainnet.

Because of the importance of true humanness in our social network-based mining, only the Pioneers
who pass KYC will be able to transfer their Phone balance to the blockchain. Our objective is to have as
many true Pioneers as possible pass KYC. As explained further below, the rolling six-month window
serves the following important purposes:

strike a balance between giving Pioneers adequate time to pass KYC and creating enough urgency to
pass KYC,

prevent unverified Pi beyond the rolling six-month KYC grace period from migrating to the Mainnet,
instead freeing it up for mining by other KYC’ed Pioneers within the allocated Pi overall supply limit for
Pioneer mining, and

limit KYC spam and abuse (see 30-day delay in KYCing new members below)

If Pioneers do not pass KYC in time, it delays the Mainnet transfer of their balances and the balances of
other Pioneers who have them on their Security Circles and Referral Teams. Without balances on the
Mainnet, Pioneers are not able to use payments in Pi apps, thereby undermining the growth of our
utility-based ecosystem. A six-month window creates a sense of urgency for Pioneers while giving them
adequate time to retrieve their mined Pi. The KYC verification process will generally take into account
Pioneers’ likelihood of being real human beings based on Pi’s machine-automated prediction
mechanisms run over the last three years. Newly created accounts will not be able to immediately apply
for KYC verification, until after 30 days. This helps the network limit the ability of bots and fake accounts
to spam and abuse our KYC process and prioritize KYC validation resources for real human Pioneers.

Finally, the Pi of the Pioneers who delay KYC verification beyond six months will not be transferred to
the Mainnet and will not be accounted for in the calculation of the systemwide base mining rate (B)
beyond the rolling six-month KYC grace period. Pioneers will, therefore, need to claim their Pi in time, or
their Pi will be reallocated to B for mining in the same year by other verified Pioneers who can make full
contributions to the network.

Scroll up

Roadmap

Roadmap

Pi Network is unique in our technological and ecosystem design as well as the significance of our
community input in development. This uniqueness is best served by a thoughtful and iterative approach
that allows for community feedback, testing of products, features, and user experience, and phases
defined by milestones. There are three main phases to our development: (1) Beta, (2) Testnet, and (3)
Mainnet.

Phase 1: Beta

In December 2018, we publicly launched our mobile app on the iOS App store as an alpha prototype that
onboarded the initial Pioneers. On Pi Day, March 14, 2019, the original Pi whitepaper was published,
marking the official launch of the Pi Network. At this stage, our app allowed Pioneers to mine Pi by
contributing to the growth and security of the future Pi blockchain. As the eventual goal was to launch
the Mainnet and build an ecosystem around the Pi platform, the Pi app running on the centralized Pi
server enabled mobile phone users (Pioneers) to contribute their Security Circles that, in aggregate, built
the trust graph required by the consensus algorithm of the Pi Blockchain, and in return, the Pioneers
received mining rewards. Furthermore, the centralized phase allowed the network to grow, the
community to form, and the Pi token to be accessible and widely distributed. This phase also allowed for
the iteration of many technical features and Pioneer experience by leveraging community input
throughout the development process.
The following major accomplishments were made during the Beta phase:

The Pi Network mobile app was listed and accessible through the iOS App Store and Google Playstore.

Pi Network grew from 0 to over 3.5 million engaged Pioneers.

The Pi Network community actively engaged with the project through the app home screen interactions
and chat app.

Pi Network reached 233 countries and regions around the world.

Phase 2: Testnet

This phase started on March 14, 2020, marking another critical preparation to the transition to a
decentralized blockchain—a live Testnet with distributed Nodes from all over the world. Pi Network’s
Node software enabled individual computers to support running the Pi Testnet using Test-Pi. Test-Pi was
available only for the purpose of testing and has no relation to Pioneers’ account balances on the Pi app.
The Pi Testnet has reached over 10,000 fully functional community Nodes and over 100,000 daily active
Nodes on the waiting list, and as explained in a later section, will continue to exist for testing purposes in
the Mainnet phase.

Pi Testnet allows for the testing of connectivity, performance, security, and scalability of the blockchain,
and allows Pi apps developers to develop the Pi apps before they can deploy their app on the Mainnet.
During the Testnet phase, 3 major strategies were adopted: (1) decentralization through Testnet Nodes,
(2) growth through the main Pi app for mobile mining, and (3) utility creation through the Pi apps
platform on the Pi Browser. The Testnet ran in parallel with the Pi mobile mining app from Phase 1 and
enabled decentralized community Nodes to get online and ready for the Mainnet. Specifically, the
Testnet Nodes helped with the assessment of the blockchain’s performance, security, and scalability. It
also helped Pi App developers test their apps against the Pi Blockchain. At the same time, the Pi mobile
mining app continued to onboard millions of Pioneers, building the community and contributing to the
security of the blockchain. The Pi Browser, along with the Pi SDK, enabled the community to create
utilities and develop the Pi ecosystem.

The following major accomplishments were made during the Testnet phase:

Many versions of the Node software were released.

The Pi Platform was released along with key ingredients of our ecosystem infrastructure: Wallet,
Browser, Brainstorm and developer tools.
Pilot version of the KYC app was introduced on the Pi Browser.

The project ran its first ever worldwide online Hackathon with thousands of participants from within the
Pioneer Community.

Pi Network grew to over 30 million engaged Pioneers, and from 0 to over 10,000 fully functional
community Nodes and over 100,000 daily active Nodes on the waiting list.

Pi Network reached almost all countries and regions in the world.

Phase 3: Mainnet

In December 2021, the Mainnet of the Pi blockchain will go live. The migration of Pioneer balances from
their phone account to the Mainnet starts during this period. KYC authentication of a Pioneer precedes
their balance migration to the Mainnet. In order to allow for sufficient time for millions of Pioneers to
successfully complete their KYC verification, create utilities in the Pi ecosystem, and continue to iterate
on our technology and ecosystem design, the Mainnet will have two periods:

at first, firewalled Mainnet (i.e., the Enclosed Network),

and then, open Mainnet (i.e., the Open Network).

The Enclosed Network Period

This period will begin in December 2021. The Enclosed Network period means that the Mainnet is live
but with a firewall that prevents any unwanted external connectivity. Pioneers will be able to take time
to KYC and migrate their Pi to the live Mainnet blockchain. Any balance migrated to the Mainnet can be
used, by the choice of the Pioneer, to purchase goods and services in Pi apps, transfer to other Pioneers,
or get locked up for a duration of time for a higher mining rate. KYC’ed Pioneers will be able to use their
Pi on the Mainnet freely in an enclosed environment within Pi Network. However, this period will not
allow connectivity between the Pi blockchain and other blockchains.

Advantages of the Two-Period Approach to Mainnet

There are multiple advantages to having an intermediate enclosed period to ramp up to the fully open
Mainnet. This approach allows time for:

millions of Pioneers worldwide to pass KYC,

building and deploying more Pi Apps and allowing more utilities to be created and used,

transitioning Pi Apps deployed on the Testnet to the Mainnet, and

iterating on any modifications and adjustments to the Mainnet and the ecosystem before the Open
Network.

The Enclosed Network period allows time for millions of Pioneers to KYC and migrate their Pi to the
Mainnet. Only a small fraction of Pioneers have been able to complete their KYC around the launch of
the Mainnet. Over the coming months, we will continue to roll out the KYC solution to more Pioneers
and help them complete their KYC. If we moved directly from Testnet to Open Network, this would
mean that the Pioneers who were able to KYC before others would have Pi available for use outside of
the Pi platform while the Pioneers still waiting to complete their KYC would not yet have this privilege.
The speed at which Pioneers all over the world are able to complete their KYC will depend on the speed
at which each local community provides the KYC validator crowd work force as well as the speed at
which individual Pioneers participate in the KYC.

Having the Enclosed Network period gives time for millions of Pioneers to complete their KYC and
transfer their Pi to the Mainnet. This way, all the Pioneers who are willing and able to complete their
KYC in a reasonable period of time get to use their Pi outside of the Pi platform at once. Given that
external connectivity between the Pi Blockchain and other blockchains or systems is not allowed during
the Enclosed Network period, this further helps Pioneers focus on transitioning into Mainnet without
any influences external to the Pi Blockchain.

This period will also help the community focus on creating utilities and bootstrapping the ecosystem
without any external distractions. Consistent with the vision of the Pi network to enable a utility-based
ecosystem, this allows apps to deploy on Mainnet and create utilities for Pioneers. Pi apps will be able to
switch from Testnet to Mainnet—to production mode for real Pi transactions. At this time, KYC’ed
Pioneers will be able to spend their Pi on Pi apps, boosting utilities creation and bootstrapping the Pi
ecosystem before the Open Network. This gradual and deliberate ramp to Open Network will help the
apps, as well as the Pi Network, to uncover and resolve any glitches in the market and the technology.
Thus, the Enclosed Network period is in line with Pi’s vision of a utility-based ecosystem and its iterative
philosophy.

Moreover, the Enclosed Network will allow the Mainnet to run with production data and real Pi, which
differs from Testnet. Data gathered during the Enclosed Network will help calibrate and tweak any
configurations and formulae, if necessary, to ensure a stable and successful Open Network.

KYC Verification and Mainnet Balance Transfer

“Know Your Customer/Client” (KYC) is a process that verifies identification to distinguish genuine
accounts from fake ones. The vision of Pi Network is to build an inclusive and the most widely
distributed token and ecosystem for all Pioneers. The mining mechanism of Pi Network is social
network-based, and the mining rate has halved 5 times so far as the social network size grew to over 1K,
10K, 100K, 1M, and 10M engaged members. Therefore, Pi has a strict policy of one account per person.
This requires a high degree of accuracy to establish that members in the network are genuine human
beings, preventing individuals from being able to unfairly hoard Pi by creating fake accounts. Pioneers’
KYC results will depend on not only identity verification, but also their name matching with the Pi
account and screening against government sanction list. KYC, thus, helps ensure the true humanness of
the network and compliance with the Anti-Money Laundering (AML) and anti-terrorism regulations.

As communicated at the founding of the network, to ensure true humanness, fake Pi accounts and
scripted mining are strictly prohibited. These accounts will be disabled, and will not be able to migrate
to Mainnet. Over the past three years, multiple technical mechanisms have been implemented to
identify bots and fake accounts. For the accounts identified as highly likely to be fake by Pi’s algorithm,
the weight is on these accounts to prove otherwise. These identified fake accounts will either be
disabled or go through a much more rigorous review and appeal process. The allocation of KYC slots will
be prioritized for accounts with a high likelihood of being true human holders.

Only the accounts with verified identities will be allowed to transition to Mainnet, and only the Pi
balances attributable to identity-verified accounts will be allowed to transfer to the Mainnet balance.
When a Pioneer and their Referral Team and Security Circle members pass the KYC determines if and
when, and to what extent, a Pioneer can transfer their balances. Below is a hypothetical example to
illustrate how the KYC verification of Pioneers affects their balances in migration to the Mainnet.

For simplicity, we define different concepts of Pi balances as follows:

Mobile Balance: The Pi balance currently shown in a Pioneer’s account in the Pi mobile app

Transferable Balance: The balance that has been allowed to be transferred to the Mainnet because the
Pioneer and their specific associated individuals in the Referral Teams and Security Circles have passed
KYC

Mainnet balance: The balance that has been migrated and transferred by the Pioneer to the Mainnet

Suppose individual A is the owner of a Pi account who wants to transfer their Mobile Balance. Pioneer A
will only be allowed to transfer any of the Mobile Balance to the Mainnet when their identity is verified,
i.e., when they pass the KYC. Let’s say this individual has Individuals B, C, D, and E on their Referral Team
and Individuals D, E, F, and G in their Security Circle. So far, only individuals A, B, D, and F have
completed their KYC verification.

In this example setup:

A is a mining Pioneer who has passed KYC.

B, C, D, E are in the Referral Team of A.

D, E, F, G are in the Security Circle of A.

A, B, D, and F have passed KYC.

Here, A’s Transferable Balance is the sum of the following three components:

Pioneer Rewards: Pi mined based on A’s Pioneer status across all mining sessions

Contributor Rewards: D and F’s contribution to A’s mining rate as Contributors in all mining sessions

Ambassador Rewards: Mining bonuses from all mining sessions when B and D as Referral Team
members mined during the same session as A mined

As more of Pioneer A’s Referral Team and Security Circle members (i.e., C, E, and G) pass KYC, more
portions of A’s Mobile Balance will become Transferable Balance—ready for A to migrate to the
Mainnet, and ultimately become A’s Mainnet Balance.

During the Enclosed Mainnet period, any Mobile Balance that has not become Transferable Balance will
remain in the Mobile mining app until the associated Pioneers in the Referral Team and Security Circles
pass KYC and the corresponding amount becomes transferable to Mainnet. In the case of the above
example of Pioneer A, the balance contribution by C, E, and G will remain as Mobile Balance for A in the
mining app waiting for them to pass KYC in order for such balance to become transferable. If such
associated accounts never pass KYC, the balance attributed to these non-KYC’ed accounts will expire at a
certain date which will have allowed enough time for the whole network to KYC. The unclaimed
balances due to lack of KYC will be discarded by not being transferred to the Mainnet at all, instead
freeing it up for mining by other KYC’ed Pioneers within the allocated Pi overall supply limit for Pioneer
mining as explained in the Pi Supply section.
Restrictions in the Enclosed Network

While transactions between Pi apps and Pioneers and Pioneer-to-Pioneer transactions are allowed
within Pi Network, the Enclosed Network will have in place the restrictions as listed below. These
restrictions at this stage help enforce the enclosed nature of the network:

There will be no connectivity between Pi and other blockchains or crypto exchanges.

Mainnet can only be accessed through the Pi Wallet and Pi apps on the Pi Browser.

The Mainnet blockchain will be accessible to any computer on the internet but only through a firewall to
enforce the above rules.

There will only be Core Team Nodes on the Mainnet to ensure that the firewall is in place at all times.

The Enclosed Network will support the economic activities and growth of the Pi ecosystem. Thus,
Pioneer-to-Pioneer transactions are possible through the Pi Wallet as KYC’ed Pioneers will be able to use
the Pi Wallet to transact in Pi. Pioneers can also spend Pi in Pi apps on the Pi Browser, which can access
the Mainnet through the Pi Apps SDK and the Pi Blockchain API. During the Enclosed Network period, an
app on the Pi Browser can only use the Pi blockchain APIs whitelisted by the firewall to interact with the
Mainnet.

The following uses of Pioneer-to-Pioneer, Pioneer-to-App, and App-to-Pioneer transactions will be

allowed:

Exchange of Pi for goods and services through Pi Apps

Transfer of Pi between Pioneers for goods and services

The following uses will be prohibited:

Exchange of Pi for fiat currency

Exchange of Pi for other cryptocurrencies

Transfer for Pi for a future promise of fiat or other cryptocurrencies

Nous appliquerons les restrictions ci-dessus en ajoutant un pare-feu au réseau principal et en exécutant
exclusivement les nœuds du réseau principal pendant cette période intérimaire . Les nœuds
communautaires continueront de fonctionner sur le Testnet pendant la période du réseau fermé. Nous
continuerons à mettre en œuvre l'interface et d'autres modifications des nœuds en préparation de la
période de réseau ouvert où les nœuds communautaires pourront fonctionner sur le réseau principal.
Les restrictions du réseau visant à le maintenir fermé seront assouplies à mesure qu'il atteindra la
prochaine période : le réseau ouvert.

La période du réseau ouvert

En fonction de la maturité de l'écosystème du réseau fermé et de l'avancement du KYC, cette période

peut commencer le Pi Day (14 mars 2022), le Pi2 Day (28 juin 2022) ou plus tard. La période de réseau
ouvert signifie que le pare-feu de la période de réseau fermé sera supprimé, permettant toute
connectivité externe, par exemple à d'autres réseaux, portefeuilles et à toute personne souhaitant se
connecter au Pi Mainnet. Les appels API ne seront pas protégés par un pare-feu et les pionniers
pourront exécuter leurs propres nœuds Pi et services API. Les pionniers auront une connectivité avec
d’autres blockchains. Les nœuds communautaires peuvent également exécuter le réseau principal.

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