What is the Pi cryptocurrency?
Pi is an exciting new crypto project with the aim of building the world’s most inclusive peer-to-peer marketplace. The Pi team has set out to build a democratised cryptocurrency and smart contracts platform, secured and operated by everyday people. In short, a currency for and by the people. The vision is to create an inclusive peer-to-peer marketplace, fuelled by Pi, which they hope will compete to become the world’s most widely used cryptocurrency. Pi is a digital currency designed for everyday people and the first to be mined on mobile phones.
How do I mine Pi on my smartphone and what is the MinePi app?
The unique selling point of Pi as a new cryptocurrency is that it is the first digital currency that you can mine on your phone, making it accessible for the everyday user. ‘Mining Pi’ is very quick and easy. The free mobile app just requires you to confirm that you are not a robot by each day clicking a button to restart mining. After each period of 24 hours, you will need to ‘mine’ again. You will not be earning Pi if you do not restart the mining period daily, however the app and the act of mining are fully passive. The app is well designed to be simple and not at all time consuming. As soon as your 24 hour mining period has finished, it will send a notification reminding you to restart the mining process again.
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How is Pi enabling mining on mobile phones?
Seeking to overcome traditional barriers to adoption in the crypto space, the Pi Core Team set out to find a way that would allow everyday people to mine (i.e. earn) free cryptocurrency rewards for validating transactions on a distributed record of transactions. Unlike Bitcoin’s Proof of Work consensus algorithm, which is hugely energy consumptive and not particularly user friendly, Pi was designed to employ a consensus algorithm that would also be extremely user friendly and enable mining on personal computers and mobile phones.
What is mining with Pi?
There are 4 levels of mining within the Pi Network (but you can have more than just one role):
Someone who uses the app to interact (‘mine’) daily. They can send and receive Pi.
Someone who uses the app and adds others to the network, so they help to build the global trust graph.
This is someone who introduces and recruits new users to the network and they receive a 25% referral bonus.
A user who, as well as using the app, also runs the Pi node on a desktop or laptop and helps to maintain the distributed ledger.
The MinePi app also allows you to see who else in your security circle is mining and gives the option to ‘ping’ inactive members of your circle, which sends them a notification reminding them to mine. This way, everyone is the group can maximise the rate at which you all earn Pi.
The traditional meaning of ‘mining’ in reference to crypto, such as Bitcoin, is based on the proof of work algorithm. However, for Pi the term is used in a broader sense. For a pioneer to confirm a transaction, they just have to open the app and this connects to one or more nodes to check if the transaction is recorded on the ledger and gets the most recent block number and hash value for the specific block.
What is the Pi Network?
Pi is a very exciting network project, as it is the first digital currency that is designed for everyone. Pi Network is the first digital currency that you can mine straight from your mobile phone, which makes it fully accessible. It does not require you to be a crypto specialist - all you need to do is check in daily on the free mobile app to continue mining. Therefore, the network is crypto secured and operated by everyday people, which supports progress towards worldwide adoption of cryptocurrency.
In simple terms, what does Pi Network do?
Pi Network gives people who contribute to the network the opportunity to gain a share of the value that they have assisted in creating.
What is the Pi token?
Pi is the native cryptocurrency of the Pi network. Pi will be a fully decentralised digital currency once it reaches Phase 3 on mainnet. This is the phase when Pi will be connected to exchanges and can be exchanged for other currencies. As we are currently in Phase 2 testnet, this is a rare opportunity for anyone with a smartphone to mine Pi at no cost and build a balance of Pi cryptocurrency before any value has been assigned to the currency.
How do I get more Pi tokens?
Once each day, the Pi Network uses the SCP algorithm to calculate the distribution of Pi across the network for all miners (pioneers, contributors, ambassadors and nodes). To earn more Pi you must either increase your mining rate or become a Pi node.
You can increase your mining rate by increasing the size of your earning team.
You can increase your mining rate by increasing the size of your earning team. This can be achieved by inviting more people to the Pi Network. Your referrals will become part of your earning team and you can also add them to your security circle. The larger your (actively mining) earning team, the higher your mining rate.
Mine now before the Pi Halving
What happens at the Pi halving?
The Pi network has just surpassed 7 million engaged pioneers. Once the active mining community reaches 10 million, there will be a halving. The base mining rate is currently 0.4 Pi per hour, but after the halving, this will reduce to 0.2 Pi per hour. The next halving will be at 100 million users.
How much is Pi token worth?
Currently Pi does not hold a value, as the network is still in Phase 2 on the testnet. As a result, Pi is not listed on any exchanges and is not available to buy with another currency. However, once the Pi Network moves into the third phase (mainnet), Pi will be available on exchanges and you will be able to exchange it for other currencies.
How Does Pi Network function?
The Pi Network functions using a type of consensus algorithm based on the Federated Byzantine Agreement (FBA) and Stellar Consensus Protocol (SCP). The network does not have one single leader; the nodes communicate to decide what the next block should be. Nodes message each other stating the block they think should be next and a decision is made. This does not require as much energy as Bitcoin's proof of work consensus algorithm. The Pi network uses a broader algorithm in SCP, which coordinates harmony across a distributed system of nodes. The same base algorithm is used repeatedly to record new transactions in new blocks, but is also able to run complex computations. Moreover, the algorithm uses the collective of everyone's individual security circles to create a global trust graph which allows one to see who within the Pi network is trustworthy. Each block in the Pi Network has a limit for how many transactions can occur in it, so if there isn’t a backlog of transactions then there are normally no transaction fees. However, if there is a queue of transactions, then nodes will prioritise those with the highest fees and pick the top transactions to be produced in blocks, making an open market. The fee then goes into a temporary wallet and each day the nodes will split the transaction fees proportionally, depending on the activity level of each node.
The Pi Economic Model
The Pi Network wants to achieve scarcity, but is also seeking to avoid a situation similar to other cryptocurrencies, such as Bitcoin or Chainlink, where a large amount of the cryptocurrency belongs to just a few people.
The economic model behind the Pi Network is that: Total Maximum Supply = M + R + D
M = Total Mining Rewards
Instead of a total fixed supply for the entire network, the Pi Network has a fixed supply of Pi for each of the first 100 million users to join the community. This is a logarithmically declining function, so rewards decrease as the size of the network increases. Therefore, for each person that joins Pi in the first 100 million users, a set amount is pre-minted and then over that user’s lifetime, depending on their level of activity, they can earn this.
R = Total Referral Rewards
This is a fixed supply that acts as a referral bonus for the user referred and the user that referred them. It is mined by both parties over their lifetime and is distributed at the same time as mining rewards at the end of each day. The rate is 50% total, so 25% each for both the referrer and referee.
D = Total Developer Rewards
This is the reward for Pi mined alongside each coin minted for referrals and mining. The rate is 25% of both the mining and referral rewards combined.
Pi’s Governance Model
The Pi Network has a two phase plan for its governance.
In phase 1 the Pi network will operate under a provisional governance model (similar to Bitcoin’s governance model). This phase lasted until the number of members in the network exceeded 5 million users and it relied heavily on Pi’s core team, with additional contribution from community input, which was mostly submitted through the mobile app. The core team also worked on a more formal governance structure. For example one potential system would be liquid democracy. This would be where each pioneer has a vote that they can either use it or give it to another member.
Pi Network has now moved into the second phase, having exceeded 5 million members. There will be a provisional committee set up, which will be based on previous contributions to the network. Eventually, once the official Mainnet is launched, the Pi Network will be completely decentralised and there will not be a central authority.
The Pi Roadmap
Phase 1 - Design, Distribution, Trust Graph Bootstrap
In Phase 1, the Pi network emulated the behaviour of a decentralized system. Improvements in the user experience have been achieved with the support of a growing and committed user base. All minting of coins to users will be migrated to the live net once it launches, meaning that the livenet will pre-mint in its genesis block all account holder balances generated during Phase 1. In this phase, Pi is not listed on exchanges and it is impossible to “buy” Pi with any other currency.
This is a rare opportunity for anyone with a smartphone to build a balance of Pi cryptocurrency before any value has been assigned to the currency.
Phase 2 - Testnet
Pi’s testnet will use the same exact trust graph as the main net but on a testing Pi coin. During this phase, Pioneers will be encouraged to start their own nodes on the testnet. In order for any node to join the mainnet, they are required to begin on the testnet. Pi developers will propose and implement fixes and after a thorough concurrent run of both systems, 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. 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, Pi’s core team and the committee. Implementation and deployment will depend on nodes updating the mining software, as per other blockchains. No central authority will be controlling the currency and it will be fully decentralized. This is the phase when Pi will be connected to exchanges and can be exchanged for other currencies.
Pi will be a fully decentralised digital currency
Who is behind the Pi Network?
The Pi Network has a hugely credible and technically strong founding team. It was founded by three Stanford University alumni:
Dr Nicolas Kokkalis - Head of Technology
- Stanford PhD
- Postdoctoral Scholar in the Computer Science department at Stanford University
Vincent McPhillip - Head of Community
- Yale and Stanford trained social movement builder
- Goal to democratise society’s creation and distribution of wealth
Dr Chengdiao Fan - Head of Product
- Stanford PhD in Computational Anthropology
- She specifically researched how human-computer interaction and social computing and how it can be used to improve society and human behaviour
Plans for Dapps on the Pi Network
Pi Network’s shared currency, market place and trust graph are the foundations for a bigger plan of a decentralised app store (Dapps). Pi’s decentralised app store will lower the barrier to entry for creators. Dapp developers will be able to leverage the community’s shared resources and the existing infrastructure of the network. Developers of new Dapps can apply for access to the network’s shared resources by proposing their idea to the community.
What are the prospects for the commercialisation of Pi and introducing the ability to exchange Pi for fiat currency or other cryptoassets?
SCP has been tested for several years, as part of the Stellar Network, which is a leading and established cryptocurrency (XLM). Stellar Lumens is currently #14 on Coinmarketcap. This is a leading indicator that we can have reasonably strong confidence in the future of Pi. The Pi Network hopes to increase the number of everyday users participating in the core consensus algorithm by having more nodes in their network than there are in the Stellar network. More nodes means more communication between them across the network. Although this will decrease the rate at which new blocks and transactions are recorded, it will still be far faster than Bitcoin, which produces a new block every 10 minutes, compared to Stellar, which confirms every 3-5 seconds.
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- Pi White Paper