Some DePIN projects have achieved sustainable profitability by solving existing problems, even without relying on the flywheel effect of token economy.
Decentralized Physical Infrastructure Network (DePIN) is the integration of memory blockchain and infrastructure network. Currently, DePIN exists in industries such as energy, telecommunications, storage, artificial intelligence, and data collection.
In the previous cryptocurrency cycle, many projects took advantage of the DePIN craze to target areas with huge market opportunities, but when the core product failed to gain sufficient appeal on both the supply and demand sides, they turned to cryptocurrency token economics.
However, in those surviving projects, many companies have spent time building infrastructure, achieving sustainable profits by solving existing problems, and even not relying on the flywheel effect of token economy. Let's take a look at some of these cases.
Traditional Global Positioning Systems (GPS) often lack the precision required for advanced applications that require centimeter level accuracy rather than meter level accuracy. The solution of Geodnet network improves the positioning accuracy by 100 times compared to traditional GPS technology.
Geodnet network services industries that rely on high-precision geospatial data, including:
In 2024, Geodnet Network reported a year-on-year revenue growth of over 500%, reaching $1.7 million.
Geodnet Network uses native token GEOD to incentivize participants:
1. Becoming a miner:
2. Using the internet: Access real-time kinematic (RTK) calibration data through subscription or direct purchase.
3. Development application: Develop software for specific industries based on Geodnet network data.
4. Governance: Participate in protocol governance by pledging GEOD tokens and voting on proposals.
Traditional mobile network operators, such as T-Mobile, require significant capital expenditures to build base stations, maintain infrastructure, and expand coverage. Helium The problem was solved by creating a decentralized wireless network that utilizes community owned hotspots to provide affordable, scalable, and resilient network connections for mobile and IoT devices.
The Helium network generates revenue through two main channels:
1. Direct to consumer action plan: Provides an unlimited data plan for $20 per month, allowing users to use both Helium network hotspots and partner networks (such as T-Mobile) simultaneously.
2. Operator WiFi diversion fee: Charging telecom operators $0.50 per GB to divert data through decentralized hotspots on the Helium network instead of traditional base stations.
The HNT token of Helium Network is the core of its incentive and payment structure:
1. Hotspot deployment:
2. Consumer Package: Subscribe to the Helium Network's monthly $20 mobile plan to get affordable mobile data coverage.
3. Operator partnership: Telecom operators can integrate with the Helium network, divert data traffic, and reduce operating costs.
4. Governance and Pledge: Pledge HNT tokens to participate in network governance, propose suggestions, and vote on key upgrades.
Akash Network aims to address the high cost, scalability limitations, and centralization issues of traditional cloud computing providers such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. It addresses these issues by providing a decentralized cloud computing market that allows users to profit from idle machines while reducing costs.
Akash Network generates revenue through the following methods:
Akash Network uses AKT tokens for payment, governance, and incentives.
1. Purpose:
2. Incentives:
3. Governance: Token holders can propose upgrade suggestions and vote on protocol changes.
4. Destruction mechanism: Network fees are destroyed, reducing token supply.
1. As a provider:
2. As a consumer:
3. As a developer:
4. Governance participation: Pledge AKT tokens and vote on network upgrades and resource pricing policies.
The above are just a small number of effective and sustainable income generating projects. In the coming months, the acceptance of DePIN will undoubtedly increase again, giving rise to more sustainable, scalable, and profitable companies.
The above companies are all consumer oriented, but another area that excites me is infrastructure. The fields where these companies operate, such as underlying memory blockchain, oracle services, smart contract services, middleware, token issuance services, etc., will benefit from the development of the DePIN project. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.
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