Pi Network’s Vietnam Node Dominance: A Hidden Threat to Decentralization
The Pi Network, once celebrated for its vision of a decentralized and user-driven crypto ecosystem, is now facing serious scrutiny. A critical issue lies in its increasing dependence on Vietnam, where nearly half of all network nodes are located. This growing geographical imbalance, coupled with strict local crypto regulations, raises red flags about the project's long-term stability and fairness.
According to recent data from PiScan, out of the 319 total nodes across the globe, a staggering 154 are based in Vietnam — about 48.2%. Even among currently connected nodes, Vietnam hosts a significant share, further signaling the country’s overwhelming presence in the network’s infrastructure.
This centralization is not just a technical concern but a structural one. At present, Pi Network has only two validator nodes, and both are under the control of the core team. This contradicts the fundamental principles of decentralization and transparency that most blockchain projects strive to uphold.
Adding to the complications is Vietnam’s regulatory environment. The government does not recognize virtual currencies like Pi Coin as legal non-cash payment instruments. Authorities have even warned that any use of Pi Coin for transactions could lead to hefty fines or criminal charges, as detailed in Article 26 of Decree 88/2019 and its amendments.
In 2023, Vietnamese authorities launched an investigation into Pi Network, citing concerns about its operational model. Meanwhile, the Ministry of Finance has proposed new laws to tighten cryptocurrency oversight, suggesting that only licensed institutions should be allowed to offer custodial services. If enforced, these regulations could directly impact local node operators and miners, further destabilizing the network’s already fragile ecosystem.
Token distribution presents another challenge. Over 60.7 billion Pi — more than 60% of the total 100 billion supply — is reportedly held by Pi Foundation wallets. This significant supply concentration undermines the ideals of trust and decentralization, with many community members questioning the true level of user control.
As one user on Reddit bluntly put it: “So long as the team holds some coins, it will never be decentralized.”
Moreover, allegations of insider token selling reported by BeInCrypto have only fueled concerns about the project's internal transparency and ethics.
For a network that claims to champion decentralized values and grassroots adoption, these issues are not just hurdles — they are existential threats. If Pi Network wishes to preserve its credibility and continue its growth, it must urgently address its overdependence on a single country, ensure fairer token distribution, and uphold the decentralized principles it was built upon.
