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”, communicated Pi’s supply model, new mining mechanism, and mining rewards

within the supply limit. Please use the December Whitepaper linked on the home screen

as a reference for the following announcement.

As stated in the December Whitepaper, the supply for mining rewards is 65 Billion Pi,

which includes rewards Pioneers have mined in the pre-Mainnet phase and rewards for

future mining through the new mining mechanism. The new mining mechanism is

meant to incentivize more types and amounts of contributions from Pioneers to the

network necessary for its Mainnet phase. The network rewards issuance going forward

and supply limits of a given time period will be based on a declining formula (rewards

issuance formula).

The Core Team has been working on the rewards issuance formula through economic

modeling and simulations. The first version of the specific formula will be released on 2/18/2022

March 1, 2022. On the same date, Pi Network will also adopt the first step of the new

mining mechanism. Because the network rewards issuance formula is a declining

function, the systemwide base mining rate (B) will be expected to decrease based on the

calculation specified in the December Whitepaper. Thus, mine and remind your team to

mine at a higher rate while you can before March 1.

The network adoption of the new mining mechanism will be independent of and in

parallel with the mass migration to the Mainnet blockchain. New mining mechanism is

composed of two major aspects: 1) supply limit of a given time period and 2) new

mining rewards in the new mining mechanism. While KYC and Mainnet migration are

ongoing, the network will concurrently follow the timeline below to put each aspect of

the new mining mechanism in effect

March 1, 2022 - The rewards issuance formula that defines the supply limit of a

given time period will take effect. Systemwide base mining rate will be reduced

based on the supply limit. The mining mechanism otherwise stays the same until

March 14.

• March 14 (Pi Day), 2022 - The new mining mechanism including the new types

of rewards specified by their respective formulae in the December Whitepaper

will take effect. Pioneers will be able to increase their individual mining rate by

making diverse types of contributions to the network.

The new mining mechanism will usher in a new era for the network. Mine at higher rates

while you can. Happy Mining!