What is Pi Network and how does it work?

Pi Network is a cryptocurrency project built around a mobile app. Users, whom the project calls Pioneers, earn the Pi coin by confirming in the app each day that they are active. The project was created by two Stanford PhD graduates, Nicolas Kokkalis and Chengdiao Fan, and its white paper is dated March 14, 2019.

How does Pi Network mining work?

Pi "mining" does not use your phone to solve puzzles the way Bitcoin mining does. According to the white paper, users sign in daily to confirm they are not a robot, and rewards are calculated once per day. The website says the app does not drain your battery.

Users can raise their earning rate by adding up to five trusted contacts to a "Security Circle." Joining requires an invitation from an existing member, and referrals also affect rates. For how this compares with other apps that use the word mining, see do crypto mining apps work.

The network itself is secured by nodes running a system based on the Stellar Consensus Protocol, in which computers agree on transactions by choosing trusted peers rather than by burning energy.

What is the Pi Network mainnet?

Pi moved through several stages:

• Enclosed Mainnet began on December 28, 2021. Pi was on a live blockchain, but a firewall blocked connections to outside systems.
• Open Network was announced on February 19, 2025, and launched on February 20, 2025. The firewall was removed, so Pi can now interact with other networks, and identity-verified exchanges and on-ramps can connect to it.

What is the Pi Network coin and how does KYC work?

Pi coins earned in the app do not automatically become usable on the mainnet. The white paper says only accounts belonging to distinct real people are honored, and balances become transferable as users and members of their referral team or Security Circle pass KYC, a know-your-customer identity check. Businesses that want mainnet access must pass a similar check, called KYB.

Koinly reports that some users struggled to finish KYC and faced migration deadlines in early 2025, after which unverified mined Pi could expire.

Is Pi Network real?

Pi Network is a real project with a live blockchain and tens of millions of users, according to its website. Whether Pi has lasting value is a separate question, and this guide makes no claim about it.

Critics point to its reliance on referrals, which some compare to multi-level marketing, and to an Enclosed Mainnet phase that lasted more than three years. In March 2025, police in Hanoi warned that Pi has no real-world utility, that its value is self-assigned and highly speculative, and that losses may not be legally protected in Vietnam. They also warned of fake Pi tokens and fake apps that harvest personal data.

Fake Pi apps and tokens are a known risk, so official app stores and the project's own site are the safer starting points. See common crypto scams for warning signs.

Rules differ by country and change often. Check the regulator or a qualified professional for your own situation.