PI Network this is another cryptocurrency project that claims will allow users to mine using their smartphones and without draining their battery life. now they're going to do this by using distributed ledger technology and making use of the stellar consensus protocol. another claim that they hold is that mining cryptocurrency on your mobile phone will not affect your battery life. the project was founded by three individual two of which hold PhDs from Stanford.
PI Network is done on a four-tier basis, the first of which is a pioneer this is somebody who uses apt to interact with the network on a daily basis, they do this by signing into the mobile app to verify their identity, and to request transactions. so that can be send or receive PI over the PI Network. The second of which is a contributor this is somebody who adds other people to their network within pi and this information goes together to create the shared trust graph, that we will discuss very briefly later lock the third of which is an ambassador this is somebody who recruits other individuals to come over and join my network, whether they are pioneers contributors or ambassadors themselves an ambassador and a referee will receive a 25% referral bonus for signing up to the network. The fourth is a node this is somebody, who is physically running a node on a desktop or laptop and will maintain the distributed ledger. it is possible to be all four of these tiers of mining and receive contributions based on all four of some of the key differences between PI Network and other blockchain projects.
the fact that rewards are paid out daily they are not paid out per block, they are also spread across the entire network so as long as you interact with the network in some shape or form you will receive a payout at the end of the day. it also in the white paper discusses the availability of free transactions depending on network congestion so once the network becomes heavily congested then miners will be able to sort through transactions based on a fee system with the higher fees being dealt with first and everybody, else having to wait based on the amount of fees they want to pay these mainnet will be sent to a separate wallet, which will then be distributed with the rest of the mining more rewards at the end of the day.
The economic model of the project the first thing to point out is that at present there is no fixed supply and the total supply is unknown. this is because the total supply will be worked out once the project officially launches. At present the mobile app and the tokens that people are earning is at acting as a faucet and it's just a visual representation of the tokens that will be created in the Genesis block, when the main net launches so here we have the total supply equals M plus R Plus D, M being the mining rewards are being the referral rewards and the D being the developer rewards so the first thing to discuss are the mining rewards. it basically works out to the fact that there is a fixed supply for each individual user of the network that will be created up to the first 100 million network users are or the referral supply is 50 percent, which is created at the same time as the mining rewards, which will then be broken down to 25 percent for the referrer and the referee these will be distributed at the same time as the remaining rewards at the end of each, Network day the or the developer rewards works out to be 25 percent of both the mining rewards and the referral rewards combined. in the white paper it does describe F which was used in the equation as a declining function this from what I understand of reading the white paper is considered to be a declining function due to the fact that the supply will be capped to the first 100 million users we also have the PI stack and these are potential use cases for the PI Network the first one is the distributed ledger and the shared trust graph this is a map of nodes and contributors and pioneers across the network being rated on their contribution to the network which is the amount of people they recruit and also the behavior of the nodes this year trust graph will be used to connect users to the nearest well behaved node on the network if they send and receive any PI the second is the attention.
PI Network so under 5 million users they intend to have a similar off chain kind of governance to that of etherium and Bitcoin. the main difference being the PI network is going to be a closed source project so whereas with bitcoin, etherium users can actually add or put forward code and improvements to the network for people to agree on that this is not going to be the case for PI Network. the developers will be asking for community input but they will not be able to implement any kind of change to the code in the same way as users can for Bitcoin and etherium for example after 5 million users a committee will be created based on users contributions to the network this will be obviously users running a node and they are ranked highly on the shared trust graph which we know is constituted on behavior of nodes but also on recruitment of other users the committee will be trusted with the control of the network deciding on where the network goes and how the network will be run but also they will allow users to have at least some say on the direction of the network via using the mobile.
Source:
https://cryptocurrencypriceprediction.com/pi-network-price-prediction/