Understand the importance of KYC in Pi Network and how it affects the different balances, including Mobile Balance, Transferable Balance, and Mainnet Balances.
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 novel cryptocurrency and developer platform allowing mobile users to mine Pi coins without draining the battery. Pi’s blockchain secures economic transactions via a mobile meritocracy system and a full Web 3.0 experience where community developers can build decentralized applications (Dapps) for millions of users.
Source: BSC.News