Pi Network has launched a voluntary Pi coin lock-up program, offering up to 200% mining rewards.

As distrust gradually breeds within the encryption ecosystem, a controversial decision by Pi Network (PI) has intensified tensions: voluntarily locking tokens in exchange for mining rewards of up to 200%. Against the backdrop of a big dump in prices and low liquidity, this initiative has provoked anger within the community, which has long been tested by latency issues and a lack of use cases.

Today (4), during the Asian session, the Pi coin is currently quoted at 0.362 USD. After losing the important level of 0.400 USD, the bears continue to probe for new lows.

(Source: Gate)

The timing of the cryptocurrency lockup plan is terrible

As cryptocurrencies continue to experience a big dump, on Saturday (August 2), Pi Network officially announced through its blog the launch of a feature that allows users to voluntarily lock their tokens in exchange for up to 200% mining rewards.

This measure applies to two levels: before migrating to the mainnet through the main application; or after migrating through the Pi wallet. The rewards for the latter will be directly credited to the on-chain tokens. Once selected, the tokens will remain locked for a specified period, and the lock-in is irreversible.

The following are the specific elements of the implementation system:

Before migration: Impact on future balance and rewards forecast;

After migration: provide up to +200% mining rewards through the Pi wallet;

The lock-up period is the entire selected duration and cannot be withdrawn in advance;

The program aims to encourage long-term commitment through voluntary participation from users to support the project's economy.

At the time this news was released, the PI Token has fallen 90% since its peak in February and dropped another 11% over the weekend, reaching a new historical low.

This strategy choice, originally a tool for community coordination, has faced widespread criticism on social networks. Many users believe that due to a lack of liquidity, the absence of a real listing, and the specific use of the token, this metric lacks relevance and is even disconnected from the current reality of the project.

Technical latency has damaged the credibility of the ecosystem

Apart from the locking mechanism itself, the most criticized aspect is the structural conditions it relies on. On X (formerly Twitter), many users complain about its technological stagnation and the lack of transparency from the core team.

For more than a year, community members have verified their KYC identities, but due to ongoing migration latency, they still cannot migrate their tokens, resulting in many balances being in a non-transferable state. For these users, the lock-up rewards are simply not applicable and even meaningless.

The unfulfilled promises have also seriously affected the project's reputation. Some preview tools, such as Pi Domains and Pi App Studio, are still not operational or accessible, which has intensified the growing dissatisfaction.

At the same time, the Mining fee rate has just dropped to a historic low, which is a deliberate deflationary model logic aimed at limiting tokenization. Worse still, 160 million Tokens must be unlocked in August, which could put additional pressure on an already fragile market.

A series of delays, coupled with a lack of clear communication in the roadmap, have intensified doubts about the actual development trajectory of the project, leading investors to leave in droves. The lack of concrete prospects or visible partnerships has heightened concerns about structural fatigue. If the Pi Network's encryption currency truly wants to regain user trust, it must achieve tangible results while also restoring open dialogue with users.