Pi Network Founder Chengdiao Fan Introduces Utility-First Tokens: What Changes?

Pi Network's Ecosystem Tokens A Utility-First Revolution on Mainnet

Key Highlights:

  • Pi Network shifts tokens from fundraising tools to real utility within apps and services.
  • Ecosystem tokens focus on user acquisition, rewarding engagement instead of speculation.
  • A vetted, product-first launch system aims to ensures that only functional projects grow within the ecosystem.

Pi Network, a mobile first crypto project, will celebrate its anniversary on March 14 (also known as the Pi Day). In its latest video, Founder Chengdiao Fan introduced a new approach to ecosystem tokens that shifts the focus away from speculation and moves towards real-world use.

 

For a bit of context, Pi Network as stated above is a mobile first crypto project that lets users mine coins directly from their phones without utilizing a huge amount of energy. The project was launched back in 2019 and over the years it managed to create a large global community, with millions of users who have completed KYC verification. The main idea behind this project was to make crypto accessible to everyday users and not just for the tech insiders.

Moreover, the founder also released a small video on social media platform X recently and stated that currently the project is also focusing on KYC migration, improving and developing better tools for developers and increase utilities within the ecosystem.

What are Pi Ecosystem Tokens?

These are community-created tokens that are built on the Pi blockchain but there is a twist, and the twist is that these tokens have been designed to actually do something so that they have a use-case in real-world application. So, instead of treating tokens as fundraising tools, which is a very common trend in Web3, Pi is designing them to power actual apps and services. These ecosystem tokens are created by developers but must be tied to working products, think payments inside apps, rewards, or in-app features and participating in governance.

These tokens have already been tested and are now gearing up for Mainnet, where they’ll exist alongside Pi Network and help power a growing app ecosystem.

Fixing What’s Broken in Crypto

Let’s be real, most tokens in Web3 follow the same script which includes the launch, the hype, raising money, and figuring out the utility later on (or not) and this is actually a structural problem. Pi Network is here to flip the scenario. Rather than raising money upfront, projects grow by attracting users.

Projects here must launch with a working product. Once that happens, these tokens will integrate into actual user experiences and retain users through real value, not promises. If there is no product, there is no token hype.

Tokens as Growth Engines, Not Fundraising Tools

Here’s where things get interesting. Instead of relying on ICO-style fundraising. Pi Network flips the script by using tokens as a way to attract and retain users. The focus shifts from raising capital to building real engagement, where people participate because the product offers actual value, not just the promise of profits. It turns the typical crypto mindset on its head, making usage the driver of growth rather than speculation.

Projects taps into Pi’s  large active user base. Users may stake Pi (called PiPower) to access ecosystem tokens. Engagement inside apps unlocks perks and rewards. So instead of investors chasing quick gains, users are exploring and using real products. It’s less “flip for profit” and more “stick around because it’s useful.”

Built-in Safety and Accountability

One of biggest pain points in crypto is trust, and Pi is trying to tackle that head-on. User Pi is locked in liquidity pools, not handed to projects. This reduces the risk of rug pulls. Projects succeed only if users stay engaged. If the app is bad, users leave. No safety net. No artificial hype to hide behind.

The System Behind it: PiRC1

All of this runs on a structured framework called PiRC1. It defines how tokens are created, distributed, and used within the ecosystem. There’s also a launchpad-style system within Pi Network that brings structure to how projects enter the ecosystem. Instead of allowing anyone to launch freely, Pi Network keeps things selective, projects need to be vetted, they need to have a working app ready, and stay open to community feedback for improvements.

This approach will make sure that only serious, functional ideas make it through, turning the ecosystem into a more curated space rather than a chaotic, anything-goes marketplace.

Together, they create a strong foundation for diverse applications, from e-commerce platforms to AI-powered games. Pi remains the core currency (used as gas), while ecosystem tokens expand functionality. The idea is simple but powerful, let tokens fuel actual production, not speculation.

There’s more brewing too. Integrations like KYC-as-a-service and AI-driven tools could bring real-world assets and use cases into the ecosystem, while also reducing bot activity. Adding to that venture funding, hackathons, and developer incentives, and users have gotten a system designed to grow fast but (ideally) sustainably. As Mainnet matures, this could lead to a surge in decentralized apps where tokens reward genuine usage, not just early hype.

Final Take

Pi ecosystem tokens are not just another feature, but it is a shift in mindset. By focusing on utility, user engagement, and accountability, Pi is attempting to move crypto closer to real-world relevance. Whether it fully delivers is still up for debate. But one thing is clear, this is not business as usual.

Also Read: Pi Network Launches Community Commerce Holiday Raffle

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Harsh Chauhan
Written by Harsh Chauhan
Harsh Chauhan is an experienced crypto journalist and editor at CryptoNewsZ. He was formerly an editor at various industries, including his tenure at TheCryptoTimes, and has written extensively about Crypto, Blockchain, Web3, NFT, and AI. Harsh holds a Bachelor of Business Administration degree with a focus on Marketing and a certification from the Blockchain Foundation Program. Through his writings, he holds the pulse of the rapidly evolving crypto landscape, delivering timely updates and thought-provoking analysis. His commitment to providing value to readers is evident in every piece of content produced. With a deep understanding of market trends and emerging technologies, he strives to bridge the gap between complex blockchain concepts and mainstream audiences.