Pi Network, a cryptocurrency project launched in 2019, is under suspicion of not being truly decentralized as advertised.
The center of the controversy is SuperNode – important network nodes in the Pi blockchain, responsible for validating transactions and maintaining the ledger.
SuperNode is chosen and controlled by the Pi Core Team (PCT), rather than allowing the community to operate freely like other decentralized blockchains (Bitcoin, Ethereum). Currently, there are only 42 SuperNodes (compared to thousands of nodes in Bitcoin or Ethereum), and the list is not clearly public, raising suspicions that the PCT still holds power from behind the scenes.
How it works
Pi Node (running on computers) validates transactions using the Stellar algorithm (SCP), based on a "security circle" among trusted nodes. SuperNode is an advanced version of Node, requiring online presence 24/7 and strong hardware and connectivity. However, many Node operators report not receiving Pi rewards, suspecting that only those with insider connections or high-end devices qualify as SuperNodes. This contradicts Pi's promise of "cryptocurrency for everyone."
Centralization suspicions
Data from PiScan shows that the PCT controls 62.8 billion Pi in 6 wallets, plus 20 billion Pi in 1,000 linked wallets, meaning most of the supply is in the hands of a small group. With few validating nodes and tight management from the PCT, many believe Pi Network resembles a centralized system more than a decentralized one.
Community response
On Reddit, questions about SuperNode received vague responses from the PCT, failing to clearly explain how users can participate. Cryptocurrency analyst Justin Bons called Pi a "scam," criticizing its control mechanism, copying Stellar technology, and its multi-level marketing model. The price of Pi also plummeted from $3 to below $1 after the "network opened" on February 20, 2025.
Although Pi Network claims to be striving to enhance value, the lack of transparency and control from the PCT has led to skepticism about the project's decentralization, with some even calling it a scam. The team has not officially responded to the allegations.
