Summary
-
Pi Network experienced a reduction in its coin supply to 6.99 billion, prompting community speculation about a coin burn.
-
The reduced supply is likely due to standard network processes, including the burning of transaction fees and the removal of coins from unverified KYC accounts, rather than a deliberate coin burn event.
-
While a reduced supply could potentially influence Pi’s price, it is uncertain if this specific reduction will trigger a significant price increase, as it may simply reflect routine network operations.
The Pi Network has recently observed a notable decrease in its coin supply, prompting discussions within its community.
The available supply of PI coins has reduced to 6.99 billion, leading to widespread speculation among users regarding the cause of this change.
Community members are actively discussing whether this reduction signifies a substantial coin burn event or is a result of the network’s standard operational procedures.
Potential Supply Reduction Factors
As of yet, the Pi Core Team has not released any official announcement concerning a planned coin burn initiative.
However, the observed decrease in supply may be attributable to several established network mechanisms.
The Pi Network’s blockchain operates using the Stellar protocol. This protocol incorporates an automatic mechanism to reduce inflation by burning a portion of the transaction fees generated on the network.
This ongoing process has been active since the mainnet launch of Pi and contributes to a gradual decrease in the total coin supply.
Coins associated with Pi accounts that did not complete the Know Your Customer (KYC) verification process by the specified deadline, which included a grace period ending on December 30, 2024, may have been removed from the circulating supply.
This removal of coins from accounts failing verification could further contribute to the observed supply contraction.
Community Discussion and Network Processes
Social media platforms are currently filled with discussions and excitement as users propose the occurrence of a significant coin burn event.
However, analysis suggests that the current reduction in coin supply is more likely due to the cumulative effect of standard network operations rather than a singular, large-scale burn event.
The decreased supply likely arises from the combination of the regular burning of transaction fees and the removal of coins from accounts that did not meet verification requirements.
Therefore, while the concept of a major coin burn is generating enthusiasm, the observed supply reduction may reflect routine network functions rather than a sudden, transformative event.
Possible Market Implications
The reduction in available coins raises the question of its potential to influence the price of Pi.
A decreased supply is often considered a factor that can potentially increase asset value; however, it remains to be seen whether this particular supply change will be sufficient to trigger a significant price appreciation.
It is plausible that the current observation simply reflects the expected outcomes of established network mechanics, rather than a fundamentally transformative event with immediate price implications.
Also Read: Listing of Pi Network (PI) Sparks Controversy as Price Soars
The Pi Network (PI) coin faced controversy after two exchanges, Huobi and XT.com, offered the PI token, leading to a surge in its value. However, the community began to distrust the listing, and even XT.com announced a trading championship with the Pi Network team. Members of the crypto community voiced critical sentiments, accusing Huobi of defrauding individuals. Ambassador @BeInCrypto Brian Becerra argued that this statement undermined the trust of the initiatives. The Pi Network team denied any alleged postings and warned investors that unlawful listings could result in.…[Read More]
*Disclaimer*: We at Bitcoinleef.com present you with the latest information in the crypto market. However, this information should not be regarded as financial advice and viewers should consult their financial advisors before investing.
Wallets