Pi Network Activates Protocol v23 as Rust Smart Contracts Pave the Way for a 2026 DEX

Nyohoka Crypto

Jan 6, 2026

Pi Network Rolls Out Protocol v23, Unlocking Rust Smart Contracts and Laying Groundwork for 2026 DEX

Pi Network has taken a significant technical step forward with the rollout of Protocol v23, marking one of the most meaningful infrastructure upgrades in the project’s history. The update introduces support for Rust-based smart contracts, a move that expands Pi Network’s development capabilities and signals a transition toward a more functional and application-driven blockchain ecosystem.

The upgrade arrives as Pi Network reports approximately 15.8 million users active on Mainnet, underscoring the scale of its user base as it enters a more technically demanding phase. Rather than focusing on headline features, Protocol v23 concentrates on strengthening core infrastructure, prioritizing stability, security, and developer tooling as the foundation for future growth.

According to community updates and developer communications, this release is not designed to deliver all major features at once. Instead, it establishes the base layer required for more advanced functionality expected to roll out gradually through 2026.

Rust Smart Contracts Mark a Major Shift

One of the most notable changes introduced by Protocol v23 is support for smart contracts written in Rust, a programming language widely adopted across the blockchain industry for its performance and memory safety features.

With this update, Pi Network moves closer to the technical standards of established smart contract platforms. Rust support enables developers to build more sophisticated decentralized applications directly on Pi’s blockchain, ranging from payment solutions and on-chain services to early-stage decentralized finance tools.

Rust’s reputation for reducing common programming errors makes it particularly attractive for blockchain environments, where security vulnerabilities can have serious consequences. By adopting Rust, Pi Network signals an emphasis on long-term reliability rather than rapid experimentation.

Developers involved in the ecosystem have noted that smart contract functionality will be introduced in phases. While the core capability is now live, many higher-level features will be activated gradually. This staged approach is intended to minimize bugs, reduce systemic risk, and allow the network to scale responsibly as application usage grows.

Building Before Expanding

Unlike networks that prioritize fast feature rollouts, Pi Network appears to be following a slower, infrastructure-first strategy. The team has emphasized that Protocol v23 is about preparation rather than immediate expansion.

By focusing on backend readiness, Pi Network aims to ensure that future applications can operate smoothly at scale. With millions of users already on Mainnet, the margin for technical failure is small. Any instability could undermine confidence across the ecosystem.

This philosophy reflects a broader shift in Pi Network’s development narrative. Instead of hype-driven updates, the focus is increasingly on long-term system design and operational resilience.

Source: Xpost

Decentralized Exchange Plans for Q1 2026

Protocol v23 also plays a critical role in preparing Pi Network for its planned decentralized exchange (DEX), which community discussions and developer statements have linked to a targeted launch window in the first quarter of 2026.

While the DEX itself is not yet live, Protocol v23 lays the groundwork required to support it. The planned exchange is expected to enable token trading, liquidity pools, and other core DeFi functions within the Pi ecosystem.

Developers have clarified that the current upgrade is focused on backend infrastructure rather than user-facing DEX features. Additional protocol updates, including a future Protocol v25, are expected to expand functionality and bring the DEX closer to full deployment.

For now, the team frames Protocol v23 as a foundational layer, ensuring that when the DEX launches, it can operate on a stable and secure base rather than relying on rushed implementations.

Expanding the Broader Ecosystem

Beyond smart contracts and exchange preparation, several other ecosystem developments continue in parallel. These include improvements to AI-based Know Your Customer (KYC) processing, enhancements to Pi’s app studio tools, and early groundwork for future token creation features.

KYC remains a central component of Pi Network’s model, and faster processing is viewed as critical for onboarding new users and developers. App studio upgrades are also designed to lower barriers for builders entering the ecosystem, particularly as smart contract functionality expands.

In January, Pi Network’s mining rate adjusted downward, reflecting the project’s monthly formula tied to network participation and activity. While some community members closely monitor these changes, the team has consistently framed mining adjustments as a predictable outcome of its economic design rather than a discretionary policy shift.

Community Milestones Ahead

The Protocol v23 rollout coincides with several symbolic milestones for the Pi community. February marks the one-year anniversary of Pi Network’s Open Network phase, while Pi Day in March traditionally draws heightened attention from users and developers alike.

These events are often accompanied by progress updates and ecosystem announcements, though the team has avoided committing to specific launch dates for most upcoming features. This cautious communication strategy reflects a preference for delivery over promises.

Community sentiment remains mixed. Supporters view Protocol v23 as evidence that Pi Network is steadily evolving into a functional blockchain platform. Critics, meanwhile, continue to question timelines and the pace of feature deployment. The coming year may prove pivotal in shaping those perceptions.

A Shift Toward Functionality Over Hype

Protocol v23 highlights a broader shift in Pi Network’s development approach. Rather than prioritizing rapid releases or speculative excitement, the focus appears to be on building core capabilities methodically.

If successful, this strategy could significantly influence how Pi-based applications and the planned DEX operate in 2026. Rust smart contracts open the door to more advanced use cases, while staged rollouts reduce the risk of systemic failures.

For a network with one of the largest user bases in the crypto space, this balance between caution and progress may prove essential.

Looking Ahead

While many features remain under development and timelines remain fluid, Protocol v23 represents a clear step forward. It transforms Pi Network from a primarily user-focused experiment into a platform increasingly capable of supporting real decentralized applications.

The next phases will be critical. As additional protocol upgrades roll out and developer activity increases, the network’s ability to translate infrastructure into usable products will come under closer scrutiny.

For now, Protocol v23 stands as a signal that Pi Network is shifting from concept to execution, laying the technical foundation for what could become a more mature and functional ecosystem in the years ahead.

Nyohoka Crypto will continue monitoring Pi Network’s development as new protocol upgrades and ecosystem tools move closer to production.