Pi Coin’s Zero-Reward Staking Model Sparks 19% Price Plunge Amid Community Outcry

Pi Coin (PI) has dropped 19.2% this week following controversial announcements during its Pi Day event. The project introduced a staking feature that lets users lock tokens to boost app rankings—but without offering traditional staking rewards.

Market sentiment turned negative after the Core Team clarified that the feature wouldn't distribute PI tokens, stating rewards "do not make sense" for app promotion. This break from crypto's usual incentive-based staking models angered users who expected compensation for network participation.

The token briefly hit $0.66 before the sell-off, with critics raising concerns about Pi's valuation fundamentals. Unlike proof-of-stake blockchains where staking secures networks and rewards users, Pi's model places the incentive burden on individual apps.