Last Updated on May 22, 2025
Key Takeaways
- Vietnam hosts 48.2% of all active Pi Network nodes, creating a geographic imbalance.
- Legal restrictions on crypto use in Vietnam put Pi’s local operations at risk.
- Pi Network governance is still controlled by the core team, with only two validator nodes.
- Over 60 billion Pi tokens remain in core-controlled wallets, raising decentralization concerns.
- Regulatory shifts in Vietnam may limit node operations to licensed entities only.
Vietnam: Infrastructure Backbone or Centralization Risk?
As of May 22, 2025, Pi Network finds itself at a crossroads. With 154 of 319 global nodes located in Vietnam, the country now accounts for nearly half of the network’s validator infrastructure. Though this concentration has helped Pi scale, it also introduces the risk of regional over-dependence—a concern that clashes with the project’s vision of global decentralization.
Out of the 76 currently connected validator nodes, 33 also operate from Vietnam, further underlining the concentration. This skew leaves users in other regions with limited influence, diluting claims of worldwide fairness and accessibility.
Local Regulation Puts Network Resilience to the Test
Vietnamese regulators have increasingly scrutinized blockchain projects, especially those lacking proper registration or licensing. Pi Coin, like most cryptocurrencies, is not recognized as legal tender in Vietnam—meaning its use in transactions can attract fines or criminal penalties.
The Vietnamese Ministry of Finance is also drafting legislation that could limit digital asset operations to state-approved or licensed entities. Should such rules pass, Pi Network could face a sudden operational vacuum, with a majority of its node capacity directly impacted.
Past investigations into Pi Network’s activities by Vietnamese authorities have already flagged compliance ambiguities, prompting questions around sustainability and platform transparency under existing law.
Token Distribution and Validator Centralization Spark Alarm
Structural issues extend well beyond node distribution. According to on-chain data from Piscan, over 60.7 billion Pi tokens—from the network’s 100 billion supply—are still held by the Pi Foundation. That leaves community participants with limited token access, reducing both economic fairness and trust in the system.
The validator layer also raises concerns: currently, only two validator nodes are live, both run by the core development team. Such limited participation is atypical for projects that aim to be decentralized. It places governance decisions in the hands of a few, undercutting broader community involvement.
In recent months, unverified claims of insider selling have circulated in the Pi community, adding to the trust deficit. Though no formal evidence has emerged, the mere existence of these concerns has fueled demand for more transparency from the leadership.
Conclusion
Vietnam’s deep involvement in Pi Network’s infrastructure presents a paradox: what was once an asset in early growth now risks becoming a liability. The geographic skew, paired with central control over both validators and token supply, undermines the platform’s decentralization narrative.
Unless Pi Network diversifies its validator footprint and opens up governance participation, it may find itself increasingly vulnerable—not just to regulatory disruption, but also to community skepticism. As regulatory frameworks evolve globally, resilience through decentralization will become more than a slogan—it will be a requirement.
Disclaimer
This article is intended for informational purposes only and does not constitute financial or investment advice. Cryptocurrency investments are inherently volatile and may be subject to regulatory changes. Always conduct your own research or consult a licensed financial advisor before making investment decisions.
