Pi Network's approach to cryptocurrency valuation is distinct, emphasizing real-world utility and mutual agreement over speculative trading. Here's a breakdown of its key principles:
---
1. Value Determined by Use
Pi Coin functions similarly to a "blank check," lacking a predetermined value. Its worth is established at the moment of transaction, based on mutual agreement between the parties involved.
---
2. Decentralized Value Assignment
Unlike traditional currencies issued by central authorities, Pi's value is determined by its users. Each transaction is a trust-based agreement, reflecting the decentralized ethos of the network.
---
3. Enclosed Mainnet: A Testing Ground
During its enclosed mainnet phase, Pi operates within a controlled environment where users can experiment with transactions. This phase lacks official pricing, allowing values to be set through consensus among users.
---
4. Immutable Transaction Values
Once a transaction is completed, the agreed-upon value of Pi in that exchange remains fixed. Even if Pi's broader market value changes in the future, past transaction values do not adjust retroactively.
---
5. Global Consensus Value (GCV) Applies to New Pi
The proposed Global Consensus Value (GCV) of $314,159 per Pi is a community-driven concept and not officially endorsed by Pi Network. If adopted, it would apply only to Pi coins that haven't been used in prior transactions.
---
6. Designed for Utility, Not Speculation
Pi is intended as a medium of exchange for goods and services, not as a speculative investment. Its primary purpose is to facilitate transactions within its ecosystem.
---
š Current Market Snapshot
As of now, Pi Coin is trading at approximately $0.6382.
---
š§ Conclusion
Pi Network's model emphasizes trust, utility, and community consensus over speculative trading. Its unique approach aims to create a decentralized and user-driven economy, where value is derived from real-world use and mutual agreement.