Pi Community is going through a rising problem as almost half of its whole nodes are concentrated in Vietnam. This excessive focus and the nation’s tightening crypto laws have raised issues concerning the undertaking’s decentralization and stability in the long term.
Furthermore, the core staff’s management over a lot of the Pi Coin (PI) provide additional provides to those worries.
Is Pi Community’s Future at Danger?
In accordance with knowledge from Piscan, Vietnam is dwelling to 154 of the community’s 319 nodes worldwide, accounting for 48.2% of the entire. At press time, 33 of the 76 linked nodes have been positioned there, additional highlighting Vietnam’s dominance.
Pi Community Complete Nodes in Vietnam. Supply: PiScan
It’s price noting that Pi Community solely has two validator nodes, each of which belong to the core staff. This in itself is a serious centralization problem, main many to query the community’s integrity.
Nonetheless, the geographical focus of the Pi Community’s watcher nodes in Vietnam raises further issues concerning the community’s equity and decentralization, as customers from one nation might maintain disproportionate management over the community’s actions.
Vietnam’s authorized framework provides additional complexity. In accordance with Vietnamese legislation, digital currencies like Pi Coin will not be a part of authorized non-cash cost devices. Furthermore, the authorities would possibly high-quality people utilizing Pi Coin for funds.
“Any particular person or group utilizing cryptocurrency, together with Pi Coin, for cost transactions might be topic to penalties below Article 26, Clause 6 of Decree 88/2019/ND-CP, as amended by Clause 15, Level d of Article 1 of Decree 143/2021/ND-CP (with fines starting from 50,000,000 VND to 100,000,000 VND) or might face prison prosecution below Article 206,” the authorities wrote in March put up.
The nation’s cautious method is additional demonstrated by its authorized warnings about Pi Community’s potential dangers. In 2023, Vietnam’s authorities even launched an investigation into Pi Community, citing issues about its enterprise mannequin.
That’s not all. The Ministry of Finance in Vietnam has proposed new laws geared toward tightening cryptocurrency oversight by limiting custody to licensed establishments solely. This proposal stresses the necessity for stricter management over cryptocurrency actions in Vietnam to make sure higher transparency, safety, and compliance with native legal guidelines.
Though nonetheless into account, this coverage might affect native miners’ operations, doubtlessly destabilizing the Pi Community’s infrastructure.
Compounding these points is the Pi Community’s token distribution. PiScan knowledge revealed that Pi Basis wallets maintain over 60.7 billion Pi of the entire 100 billion provide.
Pi Coin Provide Focus. Supply: PiScan
This centralization undermines the belief and distributed ethos that cryptocurrencies goal to embody.
“As long as the staff holds some cash, it would by no means be decentralized,” a person wrote on Reddit.
Moreover, BeInCrypto reported lately {that a} Pioneer alleged that the staff was participating in insider promoting, additional eroding belief. Due to this fact, for a undertaking that markets itself as a decentralized, user-driven ecosystem, addressing these structural vulnerabilities might be essential to sustaining credibility and making certain long-term stability.
