Why Pi Network decreased mining rate❓
Pi Network decreased the mining rate after launch for several strategic reasons:
1. Transition to Mainnet & Supply Control
Before launch, mining was more accessible to attract users. Now, with Pi moving toward the Open Mainnet, the team is controlling supply to avoid inflation and maintain scarcity.
2. Incentivizing Early Adopters
Early miners received Pi at a higher rate, rewarding them for supporting the network from the beginning. Now, as Pi gains value, new mining rewards are reduced to balance supply and demand.
3. Economic Stability & Value Appreciation
A lower mining rate prevents excess Pi from entering circulation, which could devalue the currency when it becomes tradable. This helps maintain price stability.
4. Encouraging Real Usage Over Mining
The focus is shifting from just mining to using Pi in transactions, applications, and services. A reduced mining rate pushes users to engage with the ecosystem rather than just hoarding coins.
5. Following a Pre-Planned Model
The Pi Core Team had always planned a decreasing mining rate as more users joined and as the project moved toward full decentralization. This is similar to how Bitcoin halves its mining rewards over time.
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