The native token of Pi Network, PI, experienced a sharp decline on August 2, dropping from a high of nearly $0.46 on July 28 to just under $0.35 by midday EST. The 30-day drop of nearly 30% has reignited fierce debate within the community, centered on the project's lockup mechanism and an impending wave of token unlocks.
Lockup Controversy Sparks User Backlash
On August 1, the Pi Network core team issued a reminder that “pioneers” could voluntarily create lockups regardless of their migration status. Two types of lockups — pre-migration and post-migration — were introduced, with the promise of boosting individual mining rates and fostering a “robust and stable ecosystem.” However, the announcement triggered a sell-off that wiped out weeks of gains.
Frustrated long-term holders took to social media to voice their disappointment. “Why? No need lockups. You give them 1k pi after 7 years. And now you are insisting on locking for years again? Many people are losing their capital and belief on pi,” one user wrote. Another added, “Now Pi is in downfall to $0.1. Bad handlers of the Picoin project.”
This is not the first time PI has tumbled after a key announcement failed to inspire confidence. Earlier in 2025, a similar pattern saw PI drop sharply, prompting critics to label the project “the biggest rug of 2025.” The core team maintains that lockups are voluntary and designed to incentivize long-term engagement, but a growing number of users view them as a barrier to free trading.
Massive Unlock Schedule Looms
According to social media analyst Dein, the price decline is largely driven by supply-side pressure. “Those asking why Pi Network is crashing, here's the reason behind its sharp decline. This month, Pi Network is set to unlock over 132 million Pi tokens, valued at over $70 million. This is the main reason major investors are exiting the project,” Dein explained.
The unlock schedule shared by Dein reveals an even more daunting picture: from September through December 2025, more than 600 million PI tokens are scheduled to be unlocked. Combined with the August unlock, a total of approximately 730 million tokens will become available in just five months — a supply shock for a token currently trading at around $0.35.
While some Pi proponents attribute the crash to whale manipulation, independent analysts point to the fundamental mismatch between the project's lockup push and the flood of unlocked tokens. By requiring or encouraging lockups, the team aims to reduce circulating supply, but the community interprets it as a restriction on liquidity and a signal of weak fundamentals.
Market Outlook and Risks
As of press time, PI is trading at $0.34, still on a downtrend. The psychological $0.30 level represents the next critical support; a breakdown could expose the token to $0.25 or lower. Without a credible buyback program or tangible ecosystem development, the ongoing unlock pressure is likely to weigh on the price for months to come.
Pi Network launched its mobile mining experiment in 2019 and finally transitioned to mainnet in early 2025. However, low token float, limited real-world utility, and a loyal but increasingly skeptical user base continue to challenge its long-term viability. The current lockup controversy and massive unlocks add another layer of uncertainty to a project that once promised to bring crypto to billions of unbanked users.