What is Pi Tokenomics?
Pi Tokenomics refers to the economic principles that govern the Pi Network’s tokens, including their supply, allocation, and mining mechanisms. At the core of Pi Tokenomics is a structured allocation system designed to support the network’s growth while ensuring fairness among pioneers. As Pi Network transitions to its mainnet, understanding these principles becomes even more essential.
Pi Supply and Allocation Breakdown
The total supply of Pi is capped at 100 billion tokens. This maximum supply is strategically divided into several allocations: 65 billion tokens (65%) are dedicated to community mining rewards, 10 billion tokens (10%) are for foundation reserves, 5 billion tokens (5%) are designated for liquidity needs, and 20 billion tokens (20%) are set aside for the core team. This allocation structure allows for a balance between community incentives and organizational support.
Effective Total Supply and Migration
Even with the minting of all tokens at the blockchain’s genesis, the effective total supply is recalibrated according to current migrated mining rewards. For instance, to find the effective total supply, one would divide the current community mining rewards by 65%. Each allocation follows the established percentage ratios, ensuring that the reserves and team tokens align proportionately with the community mining efforts. This design not only fosters equitable participation but also accelerates the migration of pioneers to the mainnet.
