Pi Network Staking: The lack of rewards has left users feeling confused, and the community's trust is facing a test.

Pi Network (PI) announced two important updates at its annual event Pi2Day 2025: Pi App Studio and Ecosystem Directory Staking. While Pi App Studio is praised as a tool for developers to build applications, the staking feature of the ecosystem directory has caused confusion and controversy among users. The main reason is that this staking mechanism is vastly different from traditional encryption staking models, as it does not provide direct Pi coin rewards to participants, leaving many pioneers who expected returns feeling perplexed and disappointed.

1. The Operating Model of Pi Network's New Staking Feature and User Confusion

The ecosystem catalog staking mechanism launched by Pi Network allows users to stake Pi coins on the mainnet blockchain to improve the ranking of selected applications within the Pi ecosystem. This voluntary mechanism aims to enhance the exposure and community participation of quality applications.

However, this is completely different from the traditional staking model in the world of Crypto Assets. In the traditional staking model, participants usually lock up their Crypto Assets to help the network operate (for example, to maintain network security or verify transactions) and receive these Crypto Assets as rewards. This deviation from the traditional staking model has left pioneers feeling confused.

A user expressed this confusion in the community: "Dear pioneers! There is a misunderstanding about this new stake feature. The stake application ranking will not receive Pi rewards! As always, please read carefully! After the stake ends, you will receive Pi rewards (after deducting transaction fees)." This statement reveals that many users misunderstand this feature, thinking that staking will yield profits.

2. Lack of transparent communication exacerbates chaos, and community trust is put to the test

The lack of clear communication from the core team of the Pi Network has also exacerbated the confusion. Many users pointed out that the situation regarding the lack of rewards was not clearly stated when the announcement was made.

"A new passage has been added to the Pi blog, clearly stating that there are no rewards for Pi staking. If this point had been emphasized multiple times from the beginning, many people would have understood it more easily," added another pioneer. This reflects users' dissatisfaction with the transparency of official information, believing that the core team has shortcomings in conveying key information, leading to users developing incorrect expectations. Such communication errors will undoubtedly impact the community's trust in Pi Network.

3. The Real Incentives and Potential Impacts of Staking

Although staking does not provide Pi rewards at the protocol level, it does offer incentives for developers. Developers can motivate users by providing application improvements, in-app rewards, promotions, and other incentives. Additionally, the team stated that the original staked amount will be refunded after the staking period ends.

A user explained: "After staking, your Pi will be locked (not available for purchases). For example: stake 200 Pi for a period of 60 days. After 60 days, you will receive back 200 Pi, with no rewards or interest. The remaining 212 Pi will only be used to improve your application's ranking in the ecosystem." This explanation further clarifies the nature of staking: it is a mechanism of "locking for exposure" rather than "locking to earn profits."

Despite being disappointing, the pioneers point out that the new staking mechanism may benefit the network, as one user stated, it will encourage more meaningful participation and prioritize applications that users believe are worth financial support. Additionally, the system may reduce the overall circulating supply of Pi, thereby affecting its availability and price. The post stated: "The circulating supply is decreasing - all pioneers have locked their Pi, making it unavailable on the market." Theoretically, the combination of reduced supply and potential increased demand could drive up prices. Given Pi's recent performance, a catalyst is needed to enhance its value and visibility. BeInCrypto previously reported that despite significant updates, price performance remains very sluggish. The price of Pi coin has fallen by 3.57% in the past day. As of the time of writing, its trading price is $0.48, only 20.5% above its historical low.

Conclusion:

The staking feature of the Pi Network ecosystem directory has caused confusion and controversy among users due to its lack of direct Pi coin rewards. This not only highlights the importance of transparency in official communication but also tests the community's trust in the Pi Network. Although this mechanism may have a long-term positive impact on the network by reducing circulating supply and encouraging application participation, the long-term effects on the value of Pi coin and user engagement remain uncertain. Whether the Pi Network can effectively address users' concerns in the future and convert these ecosystem upgrades into actual value enhancement will be key to its development.