Pi Network co-founder Chengdiao Fan argued that much of crypto’s inefficiency stems from how tokens are used. In her view, the industry still leans heavily on capital formation without corresponding product development, enabling projects to raise funds quickly and exit without delivering sustained value.
Speaking at Consensus Miami 2026 on Wednesday, she described this as a misalignment between crypto’s financial tools, tokens, smart contracts, and liquidity, and the slower, more demanding process of building useful products. The result is an ecosystem where value extraction often outpaces value creation.
Reworking token incentives through Pi launchpad
Fan outlined a different approach through Pi Network’s redesigned launchpad model, which aims to reduce incentives for short-term exits. Unlike traditional token launches, funds committed by participants are not transferred to project teams. Instead, they are permanently placed into liquidity pools, removing direct access to capital and limiting the ability to exit early.
Projects must also demonstrate a working product before launching. This requirement shifts focus from speculative fundraising to execution, ensuring that tokens are tied to something functional from the outset. A third element links participation benefits to actual product usage, giving users who engage with the platform more favorable access. The structure is designed to reward interaction rather than passive investment.
Tokens as a tool for user acquisition
Fan framed tokens less as fundraising instruments and more as mechanisms for acquiring and retaining users. In this model, tokens are integrated into the product experience, encouraging adoption and feedback rather than acting as standalone financial assets.
She argued that early-stage startups typically face high user acquisition costs. By embedding tokens into product ecosystems, projects can attract users without relying solely on traditional marketing or upfront capital. At the same time, users retain the ability to leave if products fail to deliver, creating a feedback loop that pressures builders to maintain relevance and utility.
Scale and distribution as competitive advantages
A key part of the model relies on Pi Network’s existing scale. The platform reports tens of millions of users globally, with a significant portion verified and active on its mainnet. This user base, according to Fan, provides immediate distribution for new applications, reducing onboarding friction and allowing projects to test products with both crypto-native and mainstream audiences.
She also pointed to the network’s use of human validation systems, combining AI and user participation, as an example of how decentralized labor and identity verification can support broader applications, including compliance and data quality.
Aligning web3 with AI-era demands
Fan positioned these changes within a broader shift driven by artificial intelligence. As AI reduces the cost of building software, competition is expected to move toward user attention, data, and engagement.
In that context, she argued that ownership-based models, where users hold tokens tied to products, could play a larger role in shaping digital economies. This includes new forms of participation where users contribute data, feedback, and activity in exchange for value.
She suggested that future business models will need to integrate these dynamics, rather than relying on traditional funding structures that separate users from ownership.
Moving away from speculative models
Fan emphasized that Pi Network’s approach deliberately avoids replicating existing token models. Instead of launching tokens first and building later, the focus is on projects that already solve defined problems.
The broader aim is to reconnect token issuance with product utility, making tokens part of an operational system rather than an end in themselves.
Her remarks reflect a growing push within parts of the industry to address structural incentives, particularly those that enable quick exits, by redesigning how tokens are created, distributed, and used.
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