Pi Network’s 1.6 Billion Token Unlock: Will It Shake the Market or Strengthen Pi’s Value?

Pi Network is preparing to unlock approximately 1.6 billion Pi tokens over the next 12 months, averaging 143 million tokens added to the tradable supply each month. This substantial unlock raises questions about its impact on Pi’s value and long-term sustainability.

At first glance, such a large token release may seem like a cause for concern, as it significantly increases the circulating supply. According to on-chain data, the current tradable Pi supply is around 1.7 billion, meaning this unlock represents an annual inflation rate of nearly 95%. However, Pi Network’s unique lockup mechanism could play a pivotal role in controlling inflation and maintaining market stability.

The Lockup Effect: Will Inflation Really Reach 95%?

Unlike traditional cryptocurrencies, where unlocked tokens immediately increase circulation, many Pioneers are expected to relock their tokens once their previous lockup periods expire. This will effectively reduce the number of tokens entering the market. Estimates suggest that due to continued lockups, inflation could drop from 95% to as low as 10%, or even 1%. If the majority of Pioneers choose to relock their tokens, the supply will remain restricted, preventing an oversupply-driven price drop.

This dynamic presents a crucial moment for Pi Network’s economy. If Pioneers collectively demonstrate strong confidence in Pi’s future by locking their tokens, scarcity will be maintained, potentially driving the value higher over time.

Market Reactions and Long-Term Outlook

The Pi Network ecosystem continues to evolve, with increasing adoption and a growing number of use cases. Pi’s success will largely depend on how its economy balances supply and demand. While token unlocks often lead to price fluctuations in other cryptocurrencies, Pi’s model introduces a unique variable—community-driven lockups—which could stabilize the market and even create deflationary effects over time.

Furthermore, Pi’s upcoming Open Mainnet launch and its potential integration with other blockchain networks could bring additional demand for the token. As Pi becomes more usable for real-world transactions and services, the incentive to hold Pi rather than sell it will likely increase.

The Ultimate Test for Pioneers

The next 12 months will be a defining period for Pi Network. The massive unlock event will test both the trust of Pioneers and the effectiveness of Pi’s economic design. If a significant number of Pioneers hold their tokens long-term, Pi could transition into a scarce and highly valuable asset.

The ultimate question now rests with the Pioneers themselves: Will they commit to the long-term vision of Pi Network and relock their tokens to maintain scarcity? Or will the market be flooded with newly unlocked Pi, potentially leading to price volatility?

Only time will tell, but one thing is certain—the way Pioneers handle this token unlock will shape Pi’s future for years to come.

📢 Pi Network will unlock approximately 1.6 billion tokens over the next 12 months. On average, approximately 143 million tokens will be unlocked each month and added to the tradable supply. This represents a significant amount of inflation. According to on-chain data, the… pic.twitter.com/gnFJkSteDs

— Pi Network VietNames (@PiNetworkVNes) March 14, 2025

Writer @Ellena

Ellena is an experienced crypto writer who loves to explore the intersection of blockchain technology and financial markets. She regularly provides insights into the latest trends and innovations in the digital currency space.

 

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