Pi Network Tests Palm Print KYC as 189M Token Unlock Nears

Pi Network has begun testing a new palm print authentication feature in its KYC system. The update is part of the network's efforts to strengthen identity verification ahead of the largest token unlock of the year. This comes as the network prepares to release 189 million PI tokens in February, creating potential pressure on the token's price and supply according to reports.

The new palm print KYC system is currently in beta, initially available to new users applying for KYC verification as announced. The network plans to roll it out to early users who have already completed their verification. The palm print method complements existing identity checks, including face scans and ID verification as reported.

The feature is intended to enhance security by making it harder to create fake accounts according to analysis.

Pi Network also announced that nearly 2.5 million users previously blocked due to compliance or regional checks can now migrate to the mainnet. These users must remain active and complete the Mainnet Checklist to proceed with the migration as detailed. The unblocking follows a large migration update in January and is part of the network's broader effort to expand its verified user base as reported.

February will see the largest monthly token unlock to date, with around 189 million PI tokens entering circulation. This follows the January unlock of approximately 134 million tokens. The increased supply has raised concerns among investors, with some linking recent price weakness to the unlock schedule according to analysts.

Why Did This Happen?

Pi Network is implementing the palm print KYC in response to growing demand for stronger security and user verification as stated. The network has faced challenges with fake accounts and compliance checks, which have historically slowed down the migration process according to reports. The new feature is designed to streamline verification while reducing fraud. Palm prints are seen as a more private and secure alternative to face scans as observed.

The timing of the unlock and security updates suggests a strategic move to align growth with stronger controls according to analysis. With over 16 million users migrated to the mainnet, the network is preparing for increased adoption and activity as reported. Strengthening identity checks is viewed as essential to maintaining trust in the system as more users join according to experts.

How Did Markets React?

The PI token price has been under pressure in recent weeks, trading around $0.16–$0.17 as of February 2 according to data. Analysts note that the recent unlock events and outflows from core wallets have contributed to the downward trend as detailed. The network's token unlock schedule has become a key factor in price movements, as larger supply increases can drive down value according to analysis.

Community reactions to the new security measures have been mixed as reported. While some users support the added security, others express concerns about delays and data privacy according to user feedback. The network's focus on trust and verification is seen as a positive development by some, even if it may slow down adoption as noted.

What Are Analysts Watching Next?

Analysts are closely monitoring Pi Network's ability to manage the increased token supply while maintaining user trust according to forecasts. The network's migration progress and KYC validation rates will be key indicators of its success in managing growth as reported. Validators will soon receive rewards for their work in the KYC process, which is expected by the end of March according to schedule.

The network's ability to balance security with user experience will be crucial in the coming months as experts observe. If the palm print feature proves effective in reducing fraud and speeding up verification, it could help attract more users and investors according to analysis. The overall market will watch whether the price can stabilize after the February unlock as predicted.

The long-term outlook for Pi Network depends on its ability to evolve its security protocols while expanding its user base according to reports. The network's transition to a more robust and scalable system may influence its potential for future listings and real-world utility as analysts note. Analysts will continue to track migration rates, token economics, and market sentiment as key factors in Pi Network's development according to forecasts.