What is Pi Network ( and how does it work )

Pi Network is a cryptocurrency focused on mobile users: instead of classic “mining” with high resource consumption, users “mine” Pi simply by pressing a button once every 24 hours via a mobile app.

The mechanism is based on a modified consensus protocol (trust system / trust circle), not the energy-intensive Proof-of-Work—meaning it’s a “lightweight” cryptocurrency with low hardware requirements.

The ecosystem itself is more than just a coin. It’s a community of “pioneers” (users), wallets, apps (dApps), commerce solutions, domain names within the network (.pi-domains), node infrastructure (nodes), and—gradually—mechanisms that give Pi real-world utility.

✅ Key milestones through 2025

On February 20, 2025, Pi Network officially entered the “Open Network” phase—meaning the network became open: external system transactions are now possible, potential exchange listings, and integration with the external financial world.

Until that point, KYC verification and “migration” of funds to Mainnet were required for previously “mined” coins to become valid.

Gradually, dApps are being added to the ecosystem—from games to commercial/utility apps that can use Pi as “internal currency.”

🚀 Latest updates (2025)

Here’s what’s new for Pi Network in 2025:

The Pi Network Ventures fund has been created—$100 million in Pi and USD to support startups and projects that will operate on the Pi blockchain. This is meant to stimulate the development of useful dApps.

The launch of the decentralized exchange PiDex is planned for December 2025—this should provide liquidity for PI, facilitate trading, and integrate with financial systems.

Work is underway on a major protocol upgrade to version V23: this includes improvements to scalability, speed, and support for smart contracts—which opens the door to DeFi, tokenization, automation, and more.

Functionality is expanding: recently, the ability to buy Pi with traditional money (fiat) through certain gateways (on-ramps) was added—a key step for attracting newcomers and increasing real demand.

.pi-domains (“network name”) continue to evolve as part of user/app identification within the ecosystem.

⚠️ Challenges—and what to watch out for

Some risks: it is expected that by December 2025, a large number of tokens will be unlocked (~620 million PI)—this may put pressure on price and liquidity.

Despite technical upgrades and scaling—for many users, the main question remains: will Pi gain real utility (market, adoption, demand) outside the community itself?

🧑‍💻 Overall—what Pi Network is now

Today, Pi Network is more than just a “mobile mining cryptocurrency.” It’s a full-fledged ecosystem aiming to become a platform for new apps, financial instruments, tokenization, DeFi, decentralized identifiers, and a bridge between the crypto and traditional financial worlds.

If you’d like, I can show a diagram or scheme of the main ecosystem components (wallets, Mainnet, dApps, exchange, smart contracts, etc.) to help visualize it. Would you like that?