Although a growing number of its vast online community keeps lashing out at Pi Network’s lack of progress in certain areas, the Core Team continues to introduce new initiatives to improve the ecosystem.
One of the latest was the incorporation of Pi ecosystem tokens on Mainnet, and co-founder Chengdiao Fan explained in a detailed video their idea and purpose.
What Are Pi Ecosystem Tokens?
She began by indicating that these new assets are tokens created by the community itself and issued on Pi. They have already been released on the Testnet, while their launch on the Mainnet is being “finalized.” Fan acknowledged the importance of security and technology for the new tokens, but noted that their design is what will set them apart. She believes there’s a significant misalignment between token design and real innovation.
“Tokens on most other crypto networks function primarily as tools to raise capital. Yet, despite this approach, most projects frequently fail to provide real utility and innovation. We see this as a structural problem.”
She explained that Pi Network is positioned differently and its ecosystem allows its users to integrate crypto tokens for products and innovations. It “strongly encourages” real utility as the team believes this is the main driver for long-term stability and success for any blockchain project.
Utility Tokens for User Acquisitions
These assets, through the Pi launch programs, mean that “projects issue tokens to fulfill the need to acquire users for their products and integrate these tokens for utility-based use cases inside their products.” Users will get full access to these new coins through the launch programs and will be able to use them in the products.
Fan added that developing such user-engaging programs that allow them to operate within a startup ecosystem is typically a long and expensive process. However, they can reduce the costs significantly by using Web3 tools from Pi Network, such as the Pi ecosystem tokens. Simultaneously, they can involve users in their projects.
It’s worth noting that acquired users will be able to hold the products accountable for their services. Consequently, Fan said this would guarantee that users get the most for their funds, as weak products will naturally disappear in time.
“Pi ecosystem tokens are not about copying existing token models. In fact, we have deliberately sought to avoid the traditional approach. Because many of the problems in Web3 stem from how tokens have been traditionally designed. And this design will also evolve as it gets iterated in practice,” Fan concluded.
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