Pi New Mining Rate And Rewards Issuance Formula 2022 | New Rewards Boosts Are Coming On Pi Day 2022

Pi New Mining Rate And Rewards Issuance Formula 2022 | New Rewards Boosts Are Coming On Pi Day 2022

Pi New Mining Rate And Rewards: On December 28, 2021, we launched the Mainnet along with new chapters of the updated Pi white paper (December Whitepaper). One chapter, “Token Model and Mining”, described Pi’s supply model, new mining mechanism, and mining rewards within the supply limit. Please use the December Whitepaper linked on the Mainnet Dashboard as a reference for the following announcement.

Pi New mining rate and Rewards Issuance Formula 2022

As previously announced, the network will follow the steps below to put the new mining mechanism in effect. These steps will be independent of and in parallel with the upcoming mass KYC verification and Pi balance migration to the Mainnet blockchain.

New Rewards Boosts Are Coming On Pi Day 2022

New Rewards Boosts Are Coming On Pi Day 2022

Effective today, March 1, 2022

A declining rewards issuance formula will take effect. In particular, the systemwide base mining rate (B) will be reduced based on an estimated monthly supply limit where B stays constant for a month and declines every month. The mining mechanism otherwise stays the same until March 14.

Upcoming on March 14 (Pi day), 2022

The new mining mechanism, which includes new rewards specified in the December Whitepaper, will take effect. Pioneers will be able to increase their individual mining rate by making newer, more diverse types of contributions to the network via Pi lockup, app usage, and node operations.

Announcing new mining rate and Rewards Issuance Formula 2022

Today, on March 1, 2022, we’re announcing the first version of the Rewards Issuance Formula—the declining exponential function described below—whereby the systemwide base mining rate (B) is reduced based on a monthly supply limit. B has today decreased to 0.02367198839 Pi per hour, which will stay constant through March 2022 and decrease monthly thereafter. Note that the new base mining rate will take effect after the completion of your respective current mining sessions that still may use the old rate.

This formula intends to ensure that Pioneer mining rewards are within Pi New mining rate and Rewards the total supply limit of 65 billion allocated for mining rewards as announced in the December Whitepaper. This declining exponential function along with the new mining mechanism balances the network’s need for growth, accessibility, longevity, and scarcity. Additionally, it right-sizes the Pioneers’ rewards for contributing to the network.

Even though B is reduced, Pioneers will soon have many more avenues to make other types of contributions to the network and boost their individual mining rates. This, in fact, is one of the purposes of the new mining mechanism. On March 14 (Pi day), 2022, the new mining mechanism will take effect along with the new types of rewards: lockup, app usage, and node operation—as specified by their respective formulae in the December Whitepaper.

Together, the first version of the declining network rewards issuance formula and the upcoming new mining mechanism marks a major advancement in the development of Pi Network’s Token Model and Mining design during the Mainnet phase. These incremental steps further exemplify how the Enclosed Mainnet period offers the network opportunities to iterate on specific formulae based on ongoing findings as well as token modeling and simulations.

Please note that the declining exponential formula below is the first version of the Rewards Issuance Formula, as it is impossible to precisely predict the future data on Mainnet and from new mining. This first version was designed Pi New mining rate and Rewards based on past data, simulations, and best assumptions, such as the 35 billion remaining supply for future mining rewards, Pioneer lockups, and overall ecosystem factors. For example, the 35 billion remaining Pi is estimated based on the currently available data about real Pioneers’ mobile balances.

A more accurate figure will be determined by the speed of network KYC and how much Pi is migrated to the Mainnet in the future. Further data and continual simulations will help assess such Pi New mining rate and Rewards underlying assumptions in the rewards issuance formula, and thus, may lead to the formula’s adjustment in line with the network’s objectives as explained above.

  • supply_limits (expressed in Pi/day) = exp ( − last_day_total_mining_rewards / 1220) • 35,000,000,000, where
  • supply_limits are the output of this formula that allocates a specific amount of Pi to each day for an indefinite time while making sure the total future issuance will not exceed the remaining available supply.
  • last_day_total_mining_rewards is equal to the total Pi mining rewards issued on the previous day,
  • 1220 is a tuning factor to be further tuned over the coming months, and
  • 35 billion is the estimated number of Pi available for Pioneers to mine going forward.

How is today’s B calculated?

The December Whitepaper stated that B will be dynamically adjusted to keep the mining rewards issuance within supply limits for a certain period of time. The time period could be yearly, monthly, daily, hourly, or even more granular. For simplicity, we are starting the dynamic B on a monthly basis, meaning that B will stay constant for a month and will be adjusted based on the rewards issuance formula and the network’s mining activities at the end of each month. Starting with a B that stays constant for a month helps Pioneers understand the implications of

1) new supply limits (effective today), 2) the new mining mechanism with Pi New mining rate and Rewards (effective March 14th, 2022), and 3) more dynamic nature of B (potentially in the future) one at a time, given that these concepts are complex and all have an effect on Pioneers’ mining rewards. At the same time, a monthly period is short enough to correct any potential over-or under-issuance of Pi deviating from the rewards issuance formula while B is stable long enough for Pioneers to follow along and adjust their contributions to the network to mine for rewards.

So, the new B effective today is calculated by summing up the daily supply_limits of the first month from the above rewards issuance formula and dividing it by 31 (number of days in March) for even daily allocation within the month and dividing it again by the sum of coefficients of mining rewards of all active Pioneers Pi New mining rate and Rewards of the last day of February—including their multiples of Referral Team and Security Circles rewards, and their estimated multiples of lockups, App Usage, and Node rewards in the new mining mechanism in March (Please refer to December Whitepaper: Section:

Mainnet Mining Formula to understand how to calculate B). Similar iterations will occur each month going forward. For example, on April 1st, B will be recalculated based on the supply limit for the second month from this formula and the sum of all reward coefficients of all active Pioneers from the last day of March. This B will stay constant through April, and update again on May 1.

When B stays constant in a month, the total number of Pi actually mined every month varies with the actual total contributions of the active mining Pioneers in that month. At the end of the month, the total number of Pi actually mined will be compared with the number initially projected by the formula.

Any deviation Pi New mining rate and Rewards between the two numbers each month will lead to a further adjustment on the remaining Pi supply, across the remaining indefinite mining period, along with any other types of adjustments explained above, e.g. the assumed 35 billion remaining mining rewards supply.

As such, the monthly B can potentially cause an over-or under-issuance of Pi, leading to a deviation from the rewards issuance formula. If such deviation on a monthly basis is constantly large, the network can move to a more dynamic version of the B model where the monthly issuance of Pi remains constant but B gets Pi New mining rate and Rewards adjusted on a more granular time epoch basis.

The shorter the time period for adjusting B to follow the formula, the less is the potential for over-or under-issuance against the targeted supply limits, and the less is the Pi New mining rate and Rewards chance for deviation from the formula over that period. More data on Mainnet and the new mining mechanism will help Pi New mining rate and Rewards examine the efficacy of the current monthly dynamic B and determine if a more dynamic version B is necessary.

What can Pioneers do?

Although the base mining rate has dropped, new mining rewards are coming soon. We will make another announcement on Pi Day March 14 to kick off the new mining mechanism and rewards, and further explain how Pioneers Pi New mining rate and Rewards can increase their individual mining rates by making other types of contributions. Until then, you can continue to boost your individual mining rates for the next two weeks by:

  • continuing to mine like before to receive the new systemwide base mining rate,
  • completing your Security Circle to maximize Security Circle rewards,
  • inviting your friends to mine Pi to increase Referral Team rewards, and
  • reminding your existing Referral Team to mine.

In addition, Pioneers should set up their lockup configuration, see how lockups can boost their mining rate in the new mining simulation interface, and commit to a lockup configuration before the new mining mechanism Pi New mining rate and Rewards takes effect on March 14. Please follow the “Lockups” button on the home screen to set up your lockup configuration. The higher the lockup percentage and the longer the lockup duration, the higher the lockup mining boost will be.