The price of PI has risen to the sky after the historical drop – The controversial strategy of 100 billion coins.

It can be said that the past few months have been anything but easy for Pi Coin. Except for a few brief and unimpressive bullish spikes, the overall trend of this coin has been strongly bearish, reaching its peak at the beginning of August.

The "spectacular" comeback of PI

Last weekend, PI fell to a new record low around the mark of 0.35 USD and continued to hit another low on August 6 at 0.335 USD. This means that PI has lost about 90% of its value compared to the peak established at the end of February.

However, in the past 24 hours, the entire cryptocurrency market has shown certain signs of recovery. Leading the way is the impressive "performance" of ETH as it surpassed the $4,000 mark, followed by a 5–8% increase in other altcoins. Among them, some coins like PI even surged explosively in double digits.

At the time of writing, PI is fluctuating around 0.4 USD, up 20% from the historical low three days ago. While the community is celebrating this strong price rebound, many are skeptical about whether this is just a "(dead cat bounce)" – a short-term recovery often seen of PI in the past – or a signal confirming that the worst phase has ended.

PI Price Chart | Source: Bitcoin MagazineIn addition, the daily unlocked token volume data for PI is no longer a concern as it was in July. Data from PiScan shows that next month there will only be one day with the unlocked token amount approaching 10 million, while the average will be around 5.6 million – much lower than the average of 7-8 million in June and July. This, at least theoretically, will help alleviate selling pressure on PI.

Token PI unlocking schedule chart | Source: PiScan## Pi Network protects the supply of 100 billion coins

In addition to the lively discussions about price movements, another topic that is also attracting a lot of attention in the community is the supply management plan of Pi Network.

From its early days as just a "Tap to Earn" experiment, Pi Network has grown into an ecosystem with over 60 million users worldwide. Alongside preparing for widespread adoption, the development team remains steadfast in maintaining a total supply of 100 billion coins – a figure that has sparked lively debate among many investors.

Many community members have proposed burning at least 20 billion tokens to reduce supply, with the hope that the price of PI will rise faster. However, Pi Network asserts that it will not implement this plan.

Pi Network chooses a total supply of 100 billion PI to ensure the project can cover users worldwide, not just prioritize early participants. A large supply helps maintain enough coin for millions of current and future users, avoiding scarcity or excessively high prices.

Most of these coins are allocated to the community through mining rewards, aimed at retaining users and encouraging them to contribute to the ecosystem for many years to come.

At the same time, the abundant supply makes it more convenient to use PI in transactions, shopping, and developing new applications. Currently, only a small portion of the total supply of 100 billion is in circulation – about 7.81 billion – the remaining will be gradually released as more users join and complete account verification.

Why doesn't Pi Network burn tokens?

Unlike many other cryptocurrency projects, Pi Network does not implement a "burn" mechanism for tokens to reduce supply. The Pi Network team believes that reducing the supply to 20 billion, as some have suggested, will cause the price to rise too quickly, making it difficult for many new users – especially in developing countries – to access.

Instead of burning tokens to control inflation, Pi applies a halving mechanism, gradually reducing the mining rate and requiring strict KYC verification to control the circulating amount of coin.

This means that, although the total supply is 100 billion, only about 10–20 billion coins will actually be available in the market during the early stage of the open network. Pi Network plans to allocate the majority of the coins to the community – accounting for about 80% of the total supply.

Of that, 65% will be used as mining rewards for members, 10% for local organizations related to Pi, and 5% for liquidity funds to maintain network operations. The remaining 20% is allocated to the project development team.

This division aims to prevent the situation where "whales" dominate and control the majority of the supply.

Justin