The Pi Network (#pi ) is unique as an alternative digital currency because it operates on a dual value system. However, this distinctive feature also raises debates about its long-term sustainability.
While the altcoin season has yet to arrive and the price of PI on exchanges has dropped significantly, the gap between the two values in the dual system continues to widen. This growing disparity raises further doubts about the model.
What is the dual value system of the Pi network?
The community of holders, known as Pioneers, are all aware that Pi currently has two different price levels.
The first is the internal value within the Pi ecosystem, called the Global Consensus Value (GCV), which is set at approximately $314,159—symbolically inspired by the mathematical number pi. The second is the price on exchanges, which is currently around $0.60 at the time of writing.
Pi Network's dual value system is a bold experiment. It offers hope to its believers, but it also comes with serious risks.
According to Mr. Spock, an investor who backs the Pi network, this system is viable and could be part of a deliberate strategy.
“Some of the potential strengths include:• Merchant trust and consistency in the ecosystem• A stable economic environment for Pay-based apps and platforms• Protection from volatility and market manipulation,” Mr. Spock explained.
However, he also acknowledges that the system faces risks. The massive price gap could erode trust. Furthermore, many may buy Pi at low prices on exchanges and spend it at a much higher GCV within the community.
Additionally, he suggested that the Bai Core team intervene to maintain trust in GCV, such as restricting participation in the ecosystem to KYC-verified wallets and the use of smart contracts (GCV integration).
Fair assessment or pipe dream?
In fact, pioneers continue to share arguments in support of GCV. For example, some point out that developers have integrated GCV into the source code of smart contracts and shared it on GitHub. Others highlight communities in Thailand and Vietnam that continue to promote and transact using the GCV rate.
“This movement is real. This mission is alive because of all of us. And this freedom? It’s something worth fighting for, worth every effort and heart we put into it,” said Lumary, one of the pioneers.
According to data from BeIn,,Crypto, Pi's price dropped by more than 60% in May following co-founder Ni,,Colas's public appearance.
Pay Network price performance over the past month.
With the current exchange price of $0.62, GCV is more than 500,000 times higher than the market cap. This massive difference poses a serious challenge to the viability of the model.
In general, the sustainability of this model depends on maintaining community trust. The intrinsic value model may lose its relevance if more users begin trading Pi based on market price rather than GCV.
Additionally, Pi's supply is estimated at 100 billion coins, meaning the network's total valuation under GCV could reach $31.4 quadrillion. This figure far exceeds the global GDP, which currently stands at around $100 trillion. However, this doesn't seem to shake the faith of pioneers.
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