I. Introduction
The Permaweb Index went live on Pi Day (3.14), introducing a new method for users to allocate their AO yield to ecosystem projects in exchange for the project tokens. Here are the key takeaways from the launch.
First, what is the Permaweb Index?
The Permaweb Index is a decentralized funding mechanism that allows users to allocate AO yield to projects on the permaweb in exchange for PI tokens. Unlike traditional VC funding or token presales, this model ensures that projects receive ongoing support from the community, rather than relying on one-time investments.
The Permaweb Index is a new funding mechanism that provides fair opportunities for the community to support projects while enabling builders to secure development funding. The PI token acts as a default means of exchange on the permaweb, offering broad exposure to the entire ecosystem without requiring active management. PI represents ownership of core permaweb assets:
- 33.3% $AR
- 33.3% $AO
- 33.3% Fair launch ecosystem projects
II. Directly support projects in the Permaweb Index
Users can now be early supporters of Permaweb Index projects by allocating AO yield either to PI itself or directly to specific projects they believe in. The allocated yield funds development for these applications, and in return, users receive project tokens.
This creates a fair funding environment and gives the community a stake in the projects they use everyday.
III. PI as a means of exchange
During the Pi Day X Space, Sam Williams discussed the idea that PI could evolve into a means of exchange on the permaweb, though he emphasized that the market will ultimately decide. This could introduce a new dynamic, as PI consists of 1/3 AR, 1/3 AO, and 1/3 ecosystem fair launch projects, giving holders exposure to the full stack of permaweb infrastructure, including its core applications.
PI could also serve as an indicator of the ecosystem’s health, much like how the S&P 500 reflects the state of the U.S. economy. Because PI combines three interconnected yet different degrees of volatility assets, its value might provide insight into the strength and growth of the ecosystem.
If PI becomes a widely used medium of exchange on the permaweb, it would represent a shift from how most blockchain ecosystems function today since most use the core token as the means of exchange.
IV. PI as a reputation system
The Permaweb Index doesn’t just offer developers a new way to fund their projects, it also introduces a reputation system for projects in the ecosystem.
Any project can launch a fair token, but the amount of yield allocated by users serves as a signal of trust. High-quality projects will attract more yield, while weaker ones will struggle to gain traction.
Since PI automatically rebalances based on project allocations, low-value projects will naturally make up a smaller share of the index over time. This dynamic helps filter out lower-quality projects and creates a more accurate representation of the ecosystem.
That said, bad actors will always exist in any permissionless system. PI makes it harder for projects to rug-pull their communities, but as always, do your own research before investing in any project.
V. Conclusion
The Permaweb Index introduces a novel way to fund projects, signal reputation, and possibly even serve as a means of exchange. It’s still early, but the way users engage with PI will shape how it evolves in the ecosystem.
Stay tuned for more info on the full launch of Permaweb Index Fair Launch Creator. Soon all projects will be able to permissionlessly launch projects, but for now the team is testing the security and stability of the early release.
Further reading
- PI Day 2025: The Permaweb Index Goes Live – Everything You Need to Know
- How to allocate AO yield in the Permaweb Index
- Autonomous Finance - Permaweb Index (PI) Token Goes Live on Pi Day: A New Era for Fair Launch Support
Resources
AO
Autonomous Finance
Permaweb Index Projects