Unveiling the Pi Balance Ecosystem: Understanding KYC and Pi Balances on Pi Network

The Importance of KYC on Pi Balance 

As Pi Network continues to evolve and prepare for its transition to the Open Mainnet, it becomes crucial to understand the concept of Pi balances and the associated verification process known as KYC (Know Your Customer).

From the inception of Pi Network, one of its primary objectives has been to ensure the authenticity of user accounts and prevent the presence of fake or automated accounts. To accomplish this, the mobile mining blockchain has implemented various technical mechanisms over the past three years. These mechanisms are designed to identify and deactivate accounts deemed highly likely to be fake or operating in violation of the network's guidelines.

When an account is identified as potentially fake, the holder must prove its authenticity. These flagged accounts are either disabled outright or subjected to a more rigorous review and appeal process. 

Only accounts with verified identities will be eligible to transition to the Mainnet. Consequently, only Pi balances associated with identity-verified accounts can transfer to the Mainnet balance. This ensures that the Mainnet consists of balances that can be attributed to legitimate human holders of Pi.

Concepts of Pi Balances 

To clarify the different concepts of Pi balances, let's define them as follows:

Mobile Balance

This refers to the Pi balance displayed in a Pioneer's account within the Pi mobile app. It represents the current amount of Pi earned through mining and other activities on the Pi Network.

Transferable Balance

This represents the portion of the Pioneer's Pi balance authorized for transfer to the Mainnet. The Pioneer and the individuals associated with their Referral Teams and Security Circles must pass the KYC verification process to reach this stage.

Mainnet Balance

This refers to the Pi balance successfully migrated and transferred by the Pioneer to the Mainnet. It consists of the portion of Pi from the Transferable Balance that has been securely moved to the Mainnet.

How KYC Affects Mainnet Balance 

Suppose a Pioneer has a Mobile Balance of 1,000 Pi in their Pi Network account. However, before they can transfer their Pi to the Mainnet, both the Pioneer and the associated individuals within their Referral Teams and Security Circles must pass the KYC process. If successful, let's say 800 Pi from the Mobile Balance becomes the Transferable Balance. This portion is now eligible to be transferred to the Mainnet.

Once the Pioneer completes the migration process, the 800 Pi from their Transferable Balance is securely moved to the Mainnet, becoming part of their Mainnet balance. 

It's important to note that these numbers are used for illustrative purposes only and the actual ratios and figures may differ based on individual circumstances and Pi Network's policies, including Lockup settings.

In conclusion, Pi Network's approach to Pi balances and the verification process through KYC aims to ensure the authenticity and integrity of the network. By prioritizing verified identities and allowing only verified accounts to transition to the Mainnet, Pi Network fosters a trustworthy environment for its participants. As Pi Network continues to grow and refine its processes, the concept of Pi balances will play a vital role in determining the allocation and transfer of Pi within the network.

What is Pi Network?

Pi Network is a mobile mining blockchain with an application that lets people earn Pi coins by doing simple tasks on their phones. However, the project remains in its development stage with delivery of an open mainnet still a matter of speculation, with no launch date confirmed. 

With this in mind, the protocol remains in its testnet stage and will apparently go live when many users (Pioneers) complete the mandatory KYC procedure while the core team works on developing its ecosystem.

Pi Network is also reported to be under investigation by authorities in Vietnam and users should exercise a high degree of caution when interacting with the project and ensure they have conducted sufficient research before doing so.