Pi Network was once introduced as a global, decentralized project, empowering users rather than traditional centralized organizations. However, the project is currently facing a serious challenge: excessive dependence on a single country – Vietnam.

According to the latest data, Vietnam is currently operating 154 out of a total of 319 global Pi network nodes, accounting for about 48% of the entire network. Of the 76 active nodes, up to 33 nodes are located in Vietnam. This means that nearly half of the Pi system's operations depend on a single country – a significant risk in any decentralized system.

Strict laws in Vietnam regarding cryptocurrency

The concern is exacerbated by Vietnam not having a clear legal framework, which is even restrictive regarding cryptocurrencies. According to current regulations, Pi Coin is not recognized as a legal payment method in Vietnam. Individuals using Pi for transactions may face administrative fines from 50 to 100 million VND (equivalent to 2,000 to 4,000 USD) and could even face criminal prosecution.

Not stopping there, the Ministry of Finance of Vietnam recently proposed regulations requiring that only licensed organizations be allowed to hold and manage crypto assets. If passed, this will directly affect 'miners' and Pi node operators in Vietnam, potentially even completely disrupting the network's operations.

The issue is not just geographical: Is decentralization just a buzzword?

In addition to geographical centralization, Pi Network also faces serious concerns about internal control mechanisms. According to data from Piscan, more than 60.7 billion Pi Coins (out of a total of 100 billion) are currently held in wallets controlled by the Pi Foundation itself – equivalent to over 60% of the total supply.

Notably, the Pi network currently has only two validator nodes, both of which are owned by the development team. This raises doubts about the project's true 'decentralization', as the majority of control still lies in the hands of a small group.

The community begins to speak out

Many community members have expressed dissatisfaction and doubt. A user on Reddit commented: 'As long as the development team holds a large portion of the coins, this network will never truly be decentralized.'

In addition, the community also warns about the emergence of many counterfeit tokens bearing the name Pi to seize user data or funds. On March 2, the Hanoi Police also warned that many citizens were blindly swept up in the Pi wave, not fully understanding the real risks behind this project.

Reaffirming the mission or accepting to lose ideals?

If Pi Network truly wants to become a project 'of the people, for the people', then they need to take specific and urgent actions. Reducing dependence on a single country like Vietnam, expanding the verification system globally, and being more transparent in the token distribution mechanism is mandatory.

If not, Pi is likely to become a project dominated by a small group – which completely contradicts the ideals it once committed to.