Pi Pioneer Defends Dual Value Model as Exchange Price Drops 60%

Pi Network (PI) is a unique altcoin because it operates on a dual-value system. However, this special feature also causes controversy about its long-term sustainability.

Although the altcoin season has not yet arrived and PI's price on exchanges has significantly decreased, the gap between the two values in the dual system continues to expand. This increasingly widening disparity raises more doubts about this model.

What is Pi Network's Dual-Value System?

The community of holders, called Pioneers, all recognize that Pi Coin currently has two different price levels.

The first is the internal value within the Pi ecosystem, called Global Consensus Value (GCV), set at around 314,159 USD—symbolically inspired by the Pi number in mathematics. The second is the price on exchanges, which at the time of writing, is around 0.60 USD.

Pi Network's dual-value system is a bold experiment. It brings hope to believers but also comes with serious risks.

According to Mr. Spock, a Pi Network supporter, this system could work and might be part of an intentional strategy.

"Some potential strengths include:• Merchant trust and consistency in the ecosystem• Stable economic environment for Pi-based applications and platforms• Protection against market volatility and manipulation." – Mr. Spock explains.

However, he also acknowledges that the system faces risks. The large price gap could erode trust. Moreover, many people might buy Pi at a low price on exchanges and spend it at a much higher GCV rate within the community.

Additionally, he suggests that the Pi Core Team should intervene to maintain trust in GCV, such as limiting ecosystem participation to only KYC-verified wallets and using smart contracts (integrated with GCV).

Reasonable Valuation or Illusory Dream?

In reality, Pioneers continue to share arguments supporting GCV. For example, some point out that developers have integrated GCV into smart contract source code and shared them on GitHub. Others emphasize communities in Thailand and Vietnam continue to promote and trade using the GCV rate.

"This movement is real. This mission exists because of all of us. And this freedom? It's worth fighting for, worth every effort and passion we put into it." – Lumari, a Pioneer, says.

According to data from BeInCrypto, Pi's price has dropped over 60% in May after the public appearance of co-founder Nicolas.

With the current exchange price at 0.62 USD, GCV is over 500,000 times higher than the market value. This large difference poses a serious challenge to the model's feasibility.

Overall, the sustainability of this model depends on maintaining community trust. The internal value model may lose relevance if many users start trading Pi based on market price instead of GCV.

Additionally, Pi's supply is estimated at 100 billion coins, which means the total network value at GCV could reach 31.4 trillion USD. This figure far exceeds the global GDP, currently around 100 trillion USD. However, this seems not to shake the Pioneers' belief.