Pi Network: Dual Value Model Challenges Amidst Falling Prices
Pi Network (PI) has attracted attention with its innovative approach through a dual value model, which distinguishes two types of value for its token:
- Global Consensus Value (GCV): The internal value agreed upon by the community, set at US$314,159, referring to the mathematical constant π.
- Market Price on Exchanges: The real value of the PI token on the crypto market, which currently hovers around US$0.60.
The sharp contrast between these two values raises questions about the sustainability of the dual value model in the long term.
The Impact of the Price Crash: Threats to the Dual Value Model
According to information we quoted from Beincrypto media, in May 2025, the price of PI fell drastically by 60%, widening the gap between GCV and market price.
This situation raises concerns that the dual value model is vulnerable to arbitrage, where market players can buy PI at a low price on the exchange and use it in the Pi ecosystem with a much higher GCV value.
A Pi Network investor and supporter, Mr. Spock, stated that while this model has the potential to create economic stability in the ecosystem and protect against market volatility, large price gaps can erode user trust in the system.
Community Response and Mitigation Measures
Despite the challenges, the Pi Network community remains optimistic about the dual value model. Some of the proposed solutions to maintain the sustainability of this system include:
- Ecosystem Access Restriction: Only allow participation by users who comply with the GCV value.
- Oversight and Enforcement: Monitor trading activity to prevent abuse of the value gap.
These measures aim to maintain harmony between the internal value and the market price, while strengthening community trust.
Conclusion: Prospects of Pi Network’s Dual Value Model
Pi Network’s dual value model is an ambitious experiment in the crypto space. Its success depends on the ability of the community and developers to maintain a balance between the internal value and the market price, and prevent potential abuse.
With strong community support and effective mitigation strategies, this model has the potential to remain relevant and thrive in the future.
