Pi Network launches the PiRC1 token framework, banning projects that have no real-world applications from issuing tokens

On April 22, Pi Network launched the token design framework PiRC1 as part of the Protocol V22 upgrade. The core rule of PiRC1 is: only projects that already have deployable applications in the Pi ecosystem and that meet genuine user demand are eligible to issue tokens. Token proceeds do not flow to the project team; instead, they flow into a perpetual liquidity pool denominated by Pi Coin as the anchor currency, to prevent rug-pull behavior.

PiRC1’s two core rules: applications come first; funds don’t go to the project

The PiRC1 framework is designed with structural solutions to two fundamental problems in the crypto industry:

Applications first, then token issuance: Any project must first have a deployable application and genuine user demand, so it can issue tokens within the Pi ecosystem. The goal is to exclude shell tokens created purely for speculation.

Token proceeds flow into a perpetual liquidity pool: The proceeds from token issuance do not directly enter the project team’s control accounts. Instead, they flow into a perpetual liquidity pool anchored to Pi Coin. Structurally, this prevents developers from extracting liquidity after the project goes live—a “Rug Pull” behavior.

Pi’s KYC-verified user network provides an additional layer of accountability—developers and users operate under verified real identities. PiRC1 was released together with the PiRC2 document, which defines the subscription smart contract model; it is currently open for technical review and community feedback.

Tying in with the Protocol roadmap: cutoff on April 27, smart contract rollout in May

PiRC1 is part of the Protocol V22 upgrade, inheriting the infrastructure strengthening work from V21 and V21.2. Node operators have a pressing deadline: they must complete the Protocol V22 node upgrade by April 27, otherwise they will be disconnected from the mainnet.

The next major milestone is Protocol V23, expected to be launched in May 2026. It will bring full smart contract functionality to developers. With the PiRC1 token framework plus the smart contract tooling of V23, together they represent Pi Network’s structural transition from a mining-centric network to a Web3 ecosystem that supports real commercial applications.

Market impact: Can PiRC1 change Pi’s “sell-the-news” model?

Pi co-founder Fan Chengdiao first proposed the PiRC1 framework proposal in late February, emphasizing that tokens should function as tools within applications—not as standalone financial instruments—and it was officially released after open review on GitHub and a Google Form.

However, the market’s reaction to Pi tokens has consistently followed a “sell-the-news” pattern—each time the roadmap is published, it may become a short-term selling point. Whether PiRC1 can change this situation will depend on how many developers build truly deployable applications based on the framework, and whether user engagement with those applications can quickly reach measurable levels.

Frequently Asked Questions

How does PiRC1 specifically prevent tokens from being used for speculation?

PiRC1 requires projects to have deployable applications and genuine user demand before issuing tokens, fundamentally preventing a “issue tokens first, then think about use cases” model. At the same time, token proceeds flow into a perpetual liquidity pool rather than being directly controlled by the project party, preventing developers from abandoning the project after funds arrive.

What is a “perpetual liquidity pool,” and how does it protect the Pi ecosystem?

A perpetual liquidity pool is a token issuance mechanism where token sale proceeds are injected into a liquidity pool anchored to Pi Coin, rather than entering accounts that the project party can extract at will. Structurally, this prevents “Rug Pull”—i.e., developers suddenly withdrawing all funds after the project goes live.

When will Protocol V23 be launched, and what impact will it have on the Pi ecosystem?

Protocol V23 is expected to be launched in May 2026. It will bring full smart contract functionality to developers. Combined with the PiRC1 token framework, V23’s smart contract support will give the Pi ecosystem a technical foundation for supporting decentralized applications—an essential technical milestone for Pi’s transition from a mining network to a Web3 ecosystem.