#OrderTypes101 Pi Network runs the Stellar Consensus protocol (SCP). SCP was developed by David Mazières, Chief scientist at Stellar Development Foundation for the Stellar blockchain. It uses a novel mechanism called Federated Byzantine Agreements to ensure that updates to a distributed ledger are accurate and trustworthy.

The SCP protocol employs a real voting system. Nodes on the network vote on the validity of a block and the next block to be mined. A block is only mined when a majority of the nodes agree that it should be mined next and also confirm its validity. The nodes that participate in this consensus are elected by the creator of the system. The SCP is energy-friendly but is criticized for being centralized.

Tokenomics and Reward System

Pi coin is the native token of the Pi Network. Users on the Pi Network earn Pi coins through mining. Holders can use their Pi coins to pay transaction fees and also perform transactions on applications and marketplaces built in the Pi ecosystem. Pi coin supply system is guided by activities on the network and distributed solely as user rewards.

There was no official pre-mine, but users who participated in the beta mining program can port their tokens to the mainnet. Unlike many other cryptocurrencies, it doesn’t have a fixed total supply.