The Core Team behind the popular project revealed more details about how its platform can support future ecosystem tokens.
They explained that, unlike other token launches in which projects typically keep the funds raised, their model sends the committed Pi coins directly into a liquidity pool paired with the newly issued ecosystem asset.
The idea is to give each new coin an active liquidity foundation from the beginning while tying tokens to real application functions such as access, payments, rewards, governance, and user engagement.
Pi’s Approach
The new update published by the team hours ago comes just a few days after they confirmed they had completed the token distribution of the Testnet coin called SLICE. With its launch, they created a pool containing the newly-created coin as well as Test-Pi. Users, known as Pioneers within the broader Pi Network ecosystem, can trade through Pi’s decentralized order book.
However, swaps can also be completed automatically through an automated market maker. The mechanism adjusts the token price depending on the amount of SLICE and Test-Pi remaining in the pool.
Upon exchanging Test-Pi for SLICE, the former enters the pool while the latter leaves it. As SLICE becomes scarcer relative to Test-Pi, its displayed price increases and vice versa when users sell SLICE back to the pool.
The system uses a constant-product formula designed to keep the relationship between the two reserves balanced during each swap.
Over 240,000 Joined the Test
The participation period for the new token ran from June 11 until June 28 (Pi2Day). More than 240,000 Pioneers committed almost 16 million Test-Pi to acquire a supply of 10 million SLICE test tokens.
The difference with the first Pi Launchpad trial is that SLICE is now connected to a working third-party game called Slice of Pi. This allowed the network to test engagement-based bonuses through a functioning application rather than a dummy project.
The team explained that this option better reflects the intended purpose of future ecosystem tokens as it supports product utility, attracts new users, and encourages activity instead of primarily raising capital.
Users can select how much Test-Pi they want to commit, and the Launchpad automatically does the rest, calculating fair-access requirements and any engagement bonuses. Participants can review their allocations, launch prices, effective purchase prices, and the SLICE liquidity pool now that the distribution phase has been completed.
The team emphasized once again that SLICE will remain a Testnet-only asset with no real value and will never migrate to Mainnet.
The post Pi Network Explains New Launchpad Model After Big Token Distribution appeared first on CryptoPotato.
Source: https://cryptopotato.com/pi-network-explains-new-launchpad-model-after-big-token-distribution/
