Reports indicate that Pi Network may utilize smart contracts integrated with Chainlink to implement a dynamic pegging mechanism for Pi Coin.
The latest market report indicates that Pi Network is moving towards a price peg mechanism on the blockchain. Reports suggest that the community recently encountered smart contract code related to Chainlink, while directly mentioning the native cryptocurrency Pi Coin. The price of Pi has risen by 8% today to $1.50, and investors remain optimistic about the price increasing to $5 or even higher.
Will Pi Network implement a dynamic pegging mechanism?
The Pi Network community recently discovered a smart contract code featuring Chainlink, while directly referencing Pi Coin. This code implies the implementation of a dynamic pegging mechanism, potentially indicating plans to stabilize the value of Pi through an automated minting and burning system.
If confirmed, this finding suggests that Pi Network may be implementing a price peg mechanism to manage volatility. This approach is typically used with stablecoins like USDT and USDC, which peg their value to assets such as the dollar or gold. The mechanism further achieves price stability, providing a predictable and less volatile trading environment. Some market analysts believe that by offering a more reliable valuation method, pegged Pi Coin could attract more users and investors.
They also believe that as an algorithmic stablecoin, the altcoin may gain greater recognition in everyday trading and the decentralized finance (DeFi) ecosystem. However, the PiCoreTeam still needs to confirm the authenticity of this pegging mechanism.
What will be the price of Pi Coin after pegging?
The latest details about the Pi Network pegging mechanism highlight a unique approach to stabilizing its value through a dynamic algorithmic peg. It has been reported that the smart contracts tied to Chainlink will automatically manage the supply of Pi Coin based on price fluctuations. It will achieve this in two ways: by minting additional Pi Coins when the price falls below the target.
When the price exceeds the target, existing Pi coins will be burned. As shown in the figure, the pegged token is named Pi Coin, with a target price of $314,159 (represented as 314,159 × 10¹⁸ Wei, the smallest unit of Ethereum). When the price drops below the target, a minting mechanism will be activated; when the price rises above the target, a burning mechanism will be initiated.
Binance lists immediate price targets
The latest reports from the town suggest that Pi Network cryptocurrency may be listed on the cryptocurrency exchange Binance imminently. This could bring significant liquidity, thereby boosting the price. With the Binance listing, Pi Coin could rank among the top ten cryptocurrencies by market capitalization.
The price of Pi Coin has shown resilience, firmly holding at the support level of $1.30 despite recent market fluctuations. Analysts point out that this is a bullish signal, indicating that the Pi cryptocurrency may be preparing for a significant upside. Market sentiment is becoming optimistic, with more and more people calling for a possible rebound, pushing PI to reach the $5 mark.
