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FAQ

Why do we need smart contracts if we already have a backend?

Because PiRC is making economic guarantees (especially “committed Pi becomes liquidity”). A backend can enforce policy, but a contract can enforce invariants that are harder to break and easier to audit.

Does PiRC require everything to be onchain?

No. PiRC requires the critical value paths to be onchain:

  • commitments custody,
  • liquidity seeding,
  • liquidity lock,
  • and distribution rules.

Engagement scoring and UI can stay offchain (ideally with verifiable outputs).

How do we support engagement-based discounts if engagement is offchain?

Compute engagement tiers offchain, then publish a Merkle root onchain. Users claim with a proof. Anyone can recompute the tree from the underlying data and compare to the root.

Can the project ever access the committed Pi?

In a PiRC-aligned contract design, no. The contract should not have a function that transfers committed Pi to the project. The committed Pi leaves escrow only through DEX liquidity seeding (and potentially refunds on cancellation).

What prevents the project from removing the initial liquidity later?

A liquidity lock contract holds the LP position and does not expose a withdrawal path for the project.

What is the main math I need to understand?

  • PiRC Design 1 listing/clearing price: (p_{list}=\frac{C}{T})
  • Base allocation: (t_i^{base}=c_i\cdot\frac{T}{C})
  • AMM constant product: (x\cdot y=k), spot price (p=\frac{x}{y})