Pi Network’s SuperNode mechanism raises concerns about lack of decentralization

A user asked on Reddit: "Can someone running a Node or SuperNode explain what it is? Anyone operating it, please share your experience,"

An account claiming to represent the team responded, but the answer was criticized for being vague, explaining only the technical role of supernodes without detailing how users could operate them.

Several node operators also reported not receiving Pi token rewards for months. Some suspect that only those with insider connections or high-end hardware qualify, contradicting Pi Network’s claim of being "a cryptocurrency for everyone."

These concerns have fueled skepticism about whether token distribution is still centrally controlled, undermining decentralization claims.

Pi Nodes are desktop applications that help create and store Pi. Unlike the smartphone app, which handles registration, login and daily check-in, Pi Nodes also validate blockchain transactions.

Unlike Bitcoin and Ethereum, which use proof-of-work algorithms that reward computational effort, Pi relies on the Stellar Consensus Protocol (SCP). SCP allows nodes to form "security circles" with trusted peers and validate only transactions approved by others in the group. Nodes are expected to stay online as much as possible to ensure reliability.

The Pi Network mobile app features an introduction to Pi Node version 0.5.0. Photo by VnExpress/Hoang Anh

In an update released in early March, PCT introduced the SuperNode. According to the Pi Network website it is "the backbone of Pi’s Blockchain."

"They are responsible for reaching a consensus based on the algorithm to write the right transaction on the Pi ledger, in addition to all the responsibilities that a node performs. They’re also responsible for making sure other SuperNodes and Nodes get the latest state of the blockchain."

"SuperNodes also utilize the node interface and are initially selected by the Core Team. They need to be connected to the network 24/7 and have a reliable internet connection."

A new debate has emerged around Pi Network’s SuperNode, with many questioning whether the platform is genuinely decentralized or merely a centrally controlled system, according to CoinPedia.

Unlike Bitcoin and Ethereum, which rely on thousands of independently operated nodes, Pi Network remains under close management by its development team. PiScan data shows that initially only three SuperNodes operated, all run by the core team in Canada and Finland. While that number has grown to 42, transparency remains an issue, with limited information shared publicly.

"With so few validators, decision-making power is limited to a select few, making the network significantly more centralized than its competitors," Brave New Coin commented.

PiScan data further indicates that 62.8 billion Pi coins are stored in six wallets controlled by PCT, with another 20 billion held across nearly 10,000 unlisted wallets linked to the team. "This means that just a small group of insiders controls the majority of the supply, leaving little room for true decentralization," Brave New Coin said.

The Pi Network team has not responded to these concerns.

In a series of nine posts on X (formerly Twitter), Justin Bons, founder and CIO of Cyber Capital, openly called Pi Network a scam.

"WARNING: PI is a straight-up scam!" Bons wrote on March 20.

"Offering an ‘MLM’ based ‘mining’ scheme on mobile is a gimmick, as it does not contribute to consensus! PI is fully permissioned (centralized) & everything requires KYC, even simple TX’s! PI is an investment scam; it is that bad."

In later posts, Bons doubled down on his criticism.

"PI's core tech was simply copied from Stellar (another permissioned chain) even though the documentation is a total mess! (another red flag).

"PI has deployed a ‘Multi Level Marketing’ type scheme through referral programs. Kicking back 25% of the ‘mining’ reward back. The bottom line is that pointless ‘mining’ is a huge cost to the network while providing no return! Except for luring in ignorant investors..."

He also targeted Pi’s "lock Pi" mechanism, which allows users to lock their tokens for several years to increase their mining rate. "Another mechanism that is designed to lock the victims in & pump the price so that insiders can exit."

He also criticized the lack of disclosure on insider token allocations. "There is currently ZERO disclosure on insider allocation from official sources, as they claim there are none..."

The Pi Core Team has not publicly addressed Bons’ accusations. However, in a separate post on X dated March 24, the team said they are "working tirelessly behind closed doors to give $Pi the proper value it deserves."

Earlier Ben Zhou, founder and CEO of cryptocurrency exchange Bybit, also labeled Pi Network a scam project.

Launched in 2019, Pi Network promoted itself as a way for users to mine Pi for free by tapping a button in its mobile app daily. Vietnam is among the countries with the most Pi miners.

The project has been controversial, taking nearly six years to launch its mainnet, finally allowing users to transfer Pi to exchanges for trading on Feb. 20 this year.

The coin’s price has sharply declined from its peak of US$3 in February 2025 to below $1 a month later.