The Pi Network was created with a bold mission — to build a globally decentralized cryptocurrency system powered by everyday users. However, recent developments are raising concerns about whether that vision is slipping out of reach. A growing concentration of Pi Network nodes in Vietnam is causing serious debate within the crypto community about the project’s centralization, its governance, and the risks that come with putting too much power in too few hands.

According to the latest statistics, Vietnam now hosts almost half of all Pi Network nodes globally. Out of 319 nodes tracked worldwide, 154 are based in Vietnam, representing over 48% of the network. Even more concerning, of the 76 currently active nodes, 33 are located in the country. This heavy concentration in a single region could compromise the stability and integrity of the entire network.

Centralization Risk Grows

The issue goes far beyond just geography. The very idea behind decentralized blockchain networks is that they must be spread out across many different users and jurisdictions. If a majority of nodes are based in one location, the network becomes vulnerable to local disruptions — from political decisions to internet restrictions or law enforcement actions.

In the case of Vietnam, this isn’t just a theoretical risk. The country has a complex and restrictive stance on cryptocurrency. While many Vietnamese users are enthusiastic participants in Pi Network, the legal system does not recognize Pi Coin or any other cryptocurrency as legal tender. Authorities have made it clear that using Pi for payments could result in fines ranging from 50 million to 100 million VND (roughly $2,000 to $4,000). In extreme cases, individuals could even face criminal prosecution.

New Regulations Could Tighten the Grip

Vietnam’s Ministry of Finance has recently proposed new regulatory measures aimed at limiting crypto ownership and trading to licensed institutions. If passed, this move could have a major impact on the local community of Pi users, especially those running nodes and mining coins.

Such legal uncertainty not only endangers the Vietnamese part of the network but also increases global risk. If nearly half the infrastructure is tied to one region with strict or unclear rules, any sudden clampdown could destabilize the entire network.

Centralization Within the Core Team

Geographic concentration isn’t the only red flag. The structure of Pi Network’s token distribution and governance is also under scrutiny. According to Piscan, a Pi blockchain explorer, over 60.7 billion out of the total 100 billion Pi Coins are held in wallets controlled by the Pi Foundation. That means more than 60% of all existing tokens are in the hands of the project’s core team — not its users.

Even more troubling is the fact that the network currently operates with only two validator nodes — and both are owned by the core team. This kind of setup makes it difficult to argue that Pi Network is truly decentralized. While it may have millions of users worldwide, real decision-making power and control over the blockchain remain concentrated in a few hands.

The Community Voices Concern

Unsurprisingly, users are starting to question the direction Pi Network is heading. On social media platforms like Reddit and X, some have pointed out that the coin will never achieve true decentralization as long as such a large portion of the supply is held by insiders.

There are also concerns about possible insider selling and the proliferation of fake tokens pretending to be affiliated with Pi Network. These scams aim to steal user data or funds by riding on the platform’s name recognition, and Vietnamese law enforcement has started issuing warnings. On March 2, Hanoi police cautioned the public about Pi Network promotions that they described as “unrealistic.” They urged users to be wary of exaggerated claims and to understand the real risks before engaging.

Can Pi Network Course-Correct?

For Pi Network to fulfill its mission of becoming a decentralized, user-driven digital currency, it must address these centralization issues. This includes not only diversifying the geographic distribution of its nodes but also opening up validator responsibilities to the broader community. Likewise, reducing the token share held by the core team would go a long way in building trust and promoting transparency.

The project still enjoys a massive following and potential for real-world utility. But to maintain its credibility, Pi Network must take clear steps to spread power more evenly — both in code and in practice.