Progressive reduction of the mining rate in Pi Network and its impact on mapping.
For those closely following the evolution of Pi Network (PI) and feeling frustrated by the recent adjustments in mapping and rewards, it is crucial to understand the economic design of the protocol.
Since its inception, Pi Network implemented a deflationary model based on adoption milestones. This mechanism adjusts the base mining rate (Base Mining Rate, BMR) as the network grows, aiming to control the supply of PI and prevent excessive inflation prior to the opening of its mainnet.
Evolution of the BMR according to achieved milestones:
100,000 users: BMR reduced from 1.6 PI/h to 0.8 PI/h
1 million users: BMR adjusted to 0.4 PI/h
10 million users: BMR reduced to 0.2 PI/h
Most recent update (May 2025):
Reduction of the base rate from 0.0067 PI/h to 0.0056 PI/h, in line with the preconfigured decreasing issuance model.
This type of automated adjustment, similar to Bitcoin's halving events, aims to reinforce the deflationary tokenomics of the ecosystem. The decrease in hourly profitability, while it may seem discouraging in the short term, serves a strategic function: to limit issuance while progressing towards the full opening of the market and the possible listing on centralized exchanges like Binance.
Key implications:
Scheduled scarcity: Increases the perception of value as supply becomes more limited.
Incentive to hold: Users tend to conserve their PI in anticipation of future appreciation.
Preparation for liquidity in mainnet: Controlling inflation before free trading is crucial to avoid massive sell-off pressures.
The evolution of Pi Network should be understood not only from a technical perspective but also as an exercise in economic engineering to sustain a scalable, decentralized, and viable model over time.
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