$PI $PI How to Build a New Digital Economy with the Pi Network Launchpad

In most cryptocurrency projects today, tokens are usually launched first, followed by promises of product releases. This often leads to speculation, scams, and failed roadmaps. The Pi Network Launchpad takes a different approach. Project teams must have a well-functioning application and a genuine user base before launching their tokens. This ensures real use cases and immediate utility, meaning the token’s value is closely tied to an actual product.

Another key feature is the permanent locking of liquidity. During many cryptocurrency launches, project teams create liquidity pools and then remove liquidity, causing the token price to plummet—this is widely recognized as a common scam known as “rug pulling.” With the Pi Launchpad, when pioneers invest Pi, the funds go directly into the liquidity pool, and the project team contributes its tokens. Subsequently, the liquidity wallet is permanently locked, preventing liquidity from being withdrawn, thus eliminating the possibility of rug pulls.

The ecosystem structure also differs. In most ecosystems, tokens are paired with assets like USDT or ETH. In the Pi ecosystem, tokens are paired with Pi. This creates a structure where application tokens, game tokens, and service tokens are all paired with Pi, making Pi the core liquidity asset of the ecosystem, similar to **how Ethereum operates within its ecosystem**.

Token distribution will also aim to reward genuine users rather than whales or bots. The distribution results will depend on PiPower (staking) and user engagement with the application. Actions such as registering within the app, completing initial onboarding, using features, and achieving milestone goals will influence participation scores. Users with higher engagement scores may receive more favorable token pricing.

Another interesting mechanism is price protection. Since Pi enters the liquidity pool and this liquidity is permanently locked, even if many participants sell their tokens, the token price will not fall to zero. According to the PiRC model, the theoretical minimum price could be around 23.8% of the listing price.

For example, if a project launches with a listing price of 1 Pi per token, and pioneers contribute 1000 Pi to the liquidity pool while the project adds 1000 tokens, the total in the pool will be 1000 Pi and 1000 tokens. If people start selling their tokens, Pi will gradually leave the pool, but some Pi will always remain. Based on the AMM formula, the worst-case price might be around 0.238 Pi per token. This means the price could decline but will not drop to zero, as liquidity is permanently locked.

This model aims to focus on practical applications, genuine users, lasting liquidity, and community participation. It seeks to build an ecosystem driven by utility rather than mere speculation.

If this model functions as intended, the **Pi Network ecosystem will grow rapidly, supporting millions of applications, with Pi becoming the core liquidity token**.

Many pioneers may ask: if liquidity is permanently locked, what benefits do they gain? The answer is that when pioneers commit to holding Pi, they receive project tokens in return. If the application succeeds and demand for tokens increases, the token’s price may rise accordingly. At that point, pioneers can sell their tokens for profit. This mechanism of permanent liquidity locking precisely prevents “exit scams,” thereby enhancing trust and stability within the ecosystem.
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