Pipe Network has officially launched on mainnet with the token generation event (TGE) for its native PIPE token. However, the launch comes tragic as the PIPE price slumps over 32% from its initial value.
The team behind the project shared the news on X, and claimed it’s “ backbone of the world’s first permissionless full-stack cloud.” According to the term, PIPE is a utility token earned through “real proof-of-work contributions.” The network is designed to power decentralized cloud services using modules such as CDN, Firestarter Storage, and an upcoming feature called P1.
PIPE token went live with an open price of $0.30 but soon dropped to $0.23, marking a 31% drop in just a few hours after the launch.
The team explained that the PIPE token functionalizes real utility on the network with each token representing measurable activity on the system, from gigabytes of storage to terabytes of bandwidth. “$PIPE is a utility token with tangible value,” the team wrote on X. Users can pay with $PIPE or convert SOL to PIPE for access to bandwidth, storage, and compute credits.
In addition, Node operators can earn $PIPE for delivering resources, while operators stake tokens to register points of presence and maintain performance.
Now listed on Major Exchanges
PIPE token is not available for trading on major exchanges including Binance, Gate.io, KuCoin, and Kraken (EU region), with support for the United States expected soon.
The team also detailed how rewards work for network participants. Node runners must upgrade to mainnet to begin earning monthly payouts. Those who operated during the testnet phase will receive double rewards for the first 12 months, a plan the company called a “workdrop.”
Community Criticized Team on Reward Plan
However, some in the network’s community did not welcome the new reward system. Some early supporters felt that Pipe Network’s plan did not fairly reward those who helped test the platform before the mainnet launch.
During the Devnet and Testnet phases, several users spent time and resources running nodes to support the network’s early development. When the mainnet went live, they expected direct token rewards for their past efforts. Instead, they learned that rewards would come gradually over the next year through the “workdrop” program.
Some users do not agree with this as they believed their early work should have earned them immediate compensation. One user, Gautamgg, posted, “This is just an excuse not to reward early contributors ….In the absence of rewards for early users, how are they going to use the product on the mainnet !!”
However, Pipe Network clarified that early node operators would still receive monthly “double rewards” for their previous efforts. The company said these payouts would be sent on a regular basis as the network continues to grow.
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