Pi

An analysis of how Pi Network is leveraging its loyal community and a custom AMM to build a centrally managed digital economy—rejecting the volatility of Bitcoin and Ethereum.
For anyone who tracked the Pi Network chart following its Open Mainnet launch, the narrative appears painfully familiar. An euphoric pump to $3, followed by a brutal, months-long 90% crash to a bottom near $0.20. From the outside, it looks like a quintessential "pump and dump" scheme that left millions of retail holders in the dust.
This perspective is, however, fundamentally flawed.
What we are witnessing is not a failure. It is a painful but deliberate transition from market anarchy to a centrally planned economy. An analysis of on-chain data, strategic decisions, and team announcements reveals that the Pi Core Team (PCT) allowed its market to "bleed out" for one reason: to gather the data and buy the time needed to build a tool that will end the chaos permanently.
That tool is their announced custom "Auto Market Maker" (AMM). And to be clear: this is not just another DEX. It is the corporate equivalent of a central bank.

The Historical Lesson: Why Pi Rejects the "Bitcoin Path"

To understand what Pi is doing, we must first examine what it rejects.
Crypto history is defined by a free-market ethos. Bitcoin $BTC is the perfect "laissez-faire" system; it is leaderless, and its price is a pure function of supply and demand. Ethereum $ETH built on this, giving the world the tools for Decentralized Finance (DeFi), whose king is Uniswap—a "dumb" but equitable AMM that treats all pools and all actors identically.
The result is a world beloved by speculators: massive volatility, rampant "pump and dump" schemes, and price discovery through chaos.
The Pi Core Team looked at this history and said, "No, thank you."
Their strategy aligns far closer with Ripple ($XRP ) or even Central Bank Digital Currencies (CBDCs). Like Ripple Labs, PCT holds a massive treasury and funds its operations by selling its native token. But while Ripple faces perpetual criticism for its algorithmic sales that "suppress the price," Pi Network has decided to make this process both transparent and elegant.
Instead of clumsily dumping tokens on external exchanges (which analysis shows they were doing in awkward 7-to-21-day cycles), the team is now building a system to become the primary market maker itself.

The "Pi Standard": 600 Million Proofs of Loyalty

Before PCT could build its central bank, it needed to know if it had "citizens" or merely "mercenaries." This led to a brilliant social experiment: "staking without profit."
In arguably no other major project has a community voluntarily locked up a significant portion of its supply without any direct financial incentive. The result—a staggering 600 million Pi locked—was an overwhelming validation for the team.
This is perhaps the most unique data point in crypto history. It proves that Pi is not just a financial asset, but a social asset. The team verified it commands an army of "believers" (representing nearly 20% of the unlocked supply) willing to sacrifice liquidity for the good of the ecosystem.
This test provided the mandate and the confidence to proceed to the next phase.

The AMM as a Tool of Monetary Policy

This is the core of the strategy. A custom AMM is not a market; it is a tool of monetary policy.
PCT will not passively observe the market; it will actively manage it. Their custom AMM allows them to do something Uniswap cannot: deploy differentiated incentives.
The Ecosystem "Subsidy" (The Carrot): The team will heavily subsidize pools it deems beneficial. Liquidity pools for DApps (games, AI), such as Pi / Game_Token, will feature near-zero fees and will be "farmed" with extra Pi rewards. This is the "carrot"—the incentivized path for builders.
The Speculative "Tax" (The Stick): The team knows a bridge to the real world (USDC/USDT) must exist to attract serious developers. However, this bridge will be expensive. The Pi / USDC pool will be deliberately "punished"—for example, with a high 1% fee (compared to 0.1% elsewhere) and zero extra rewards. This is the "stick"—an "exit tax" for speculators.

What Comes Next: Welcome to Pi-Keynesianism

The $3 to $0.20 collapse was not a failure; it was a trial by fire. It was the traumatic lesson that forced the team to abandon hopes of a free market and fully embrace its role as a central planner.
The team does not fear a $1 price point; it fears a volatile, speculative path to $1, which would destroy its DApp economy. Their AMM will function as a shock absorber. It will absorb speculative pumps by "bleeding" liquidity from the treasury into the pool and cushion panic-induced dumps by deploying its reserves to support the price.
Pi Network is not building a competitor to Bitcoin. It is building the first large-scale, corporate-run, centrally managed digital economy.
It is a wager that, in the long term, stability and managed utility will triumph over chaos and pure speculation. Whether they succeed or fail, their "community-first, control-second" approach is an experiment that will define a new chapter in the history of digital assets. #PiCoreTeam #Pi

في خطوة أثارت دهشة المجتمع، قام بعض مستخدمي Pi Network المعروفين بـ "GCV delusionalists" بمحاولة إنشاء تطبيقات لامركزية (DApps) باستخدام 1 $PI مقابل 314,000 دولار! 😳💸


المشهد يبدو كأنه مزيج من الجرأة والطرافة:



مستخدم واحد يفكر أن 1 Pi يمكن أن يساوي 314 ألف دولار على أرض الواقع.
الآن هم يحاولون بناء تطبيقاتهم الخاصة على هذا الأساس، وكأننا في عالم آخر من "خيال الكريبتو".


😂🤣 البعض يتوقع أن خطوتهم القادمة ستكون إطلاق رمز PI جديد خاص بهم بنفس القيمة!


ما الذي يمكن استخلاصه من هذه الخطوة؟


1️⃣ جنون السوق أحيانًا يتجاوز المنطق: بعض المتداولين يضعون توقعات غير واقعية للغاية، وهذا ما نراه هنا.

2️⃣ الوعي والتثقيف ضروري: الاستثمار في أي عملة، حتى لو كانت واعدة مثل Pi، يحتاج فهمًا حقيقيًا للعرض، الطلب، والاستخدام الفعلي للعملة.

3️⃣ الكريبتو مليء بالقصص الطريفة والمغامرات: بينما البعض يحقق أرباحًا حقيقية، البعض الآخر يعيش عوالم خيالية تجعل المجتمع يتابعهم بدهشة.


💡 الخلاصة: Pi Network تواصل إثارة الجدل، وبين الجرأة والطرافة، يجب على أي مستثمر أن يوازن بين الخيال والواقع قبل الانغماس في مغامرات كهذه.


🌟 تابع الحساب: [@a7mednasr1 ]

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