By Paul Veradittakit

Compiled by: Luffy, Foresight News

Decentralized Physical Infrastructure Network (DePIN) is the fusion of blockchain and infrastructure network. Currently, DePIN exists in industries such as energy, telecommunications, storage, artificial intelligence and data collection.

In the last round of crypto cycles, many projects took advantage of the DePIN craze to target those directions with huge market opportunities, but when the core products failed to gain enough traction on both the supply and demand sides, they turned to cryptocurrency token economics.

However, among those that survived, many companies spent time building infrastructure and achieved sustainable profitability by solving existing problems, even without relying on the flywheel effect of token economics. Let’s take a look at some of these cases.

Geodnet

Core issues addressed

Traditional global positioning systems (GPS) often lack the precision required for advanced applications, which require centimeter-level rather than meter-level accuracy. The Geodnet network solution improves positioning accuracy by 100 times compared to traditional GPS technology.

Target customers

Geodnet network serves industries that rely on high-precision geospatial data, including:

  • Autonomous vehicles

  • Agriculture

  • Smart cities

  • Defense and security

  • Space exploration

Business model

  • Data authorization: Sell geospatial data to commercial clients.

  • Node participation costs: Fees associated with the installation and use of mining machines.

  • Partnerships: Collaborate with industries such as agriculture and autonomous driving systems to integrate Geodnet network services into existing workflows.

In 2024, the Geodnet network reported a year-on-year revenue increase of over 500%, reaching $1.7 million.

Token economics

The Geodnet network uses the native token GEOD to incentivize participants:

  • Miners earn tokens based on data contributions and network uptime.

  • Destruction mechanism: Tokens are destroyed during data transactions, introducing a deflationary mechanism.

  • Average daily earnings: The average daily earnings per miner is approximately $4.30, with an expected payback period of 3 - 4 months.

  • Circulation: Token distribution ensures liquidity while incentivizing early adopters.

  • Token usage: Used for payments, staking, and governance within the network.

Ways to participate and contribute

1. Become a miner:

  • Purchase mining equipment (costs between $500 - $700).

  • Set up and connect the mining machine to the network, uploading 20 - 40GB of data monthly.

2. Using the network:

  • Access real-time kinematic (RTK) correction data through subscription or direct purchase.

3. Develop applications:

  • Develop software for specific industries based on Geodnet network data.

4. Governance:

  • Participate in protocol governance by staking GEOD tokens and voting on proposals.

Helium

Core issues addressed

Traditional mobile network operators (like T-Mobile) require massive capital expenditures to build base stations, maintain infrastructure, and expand coverage. Helium addresses this by creating a decentralized wireless network that provides affordable, scalable, and resilient network connectivity for mobile and IoT devices using community-owned hotspots.

Target customers

  • Consumers: Pay $20 monthly to use the unlimited data provided by Helium's decentralized network.

  • Telecom providers: Achieve WiFi diversion for major operators to reduce their infrastructure costs.

  • IoT device manufacturers: Provide connectivity for low-power IoT devices using the LoRaWAN protocol.

  • Businesses and institutions: Help organizations deploy dedicated wireless networks for asset tracking, sensors, and environmental monitoring.

Business model

Helium network generates revenue through two main avenues:

1. Direct-to-consumer mobile plans:

  • Provide an unlimited data plan for $20 per month, allowing users to use both Helium network hotspots and partner networks (like T-Mobile).

2. Operator WiFi diversion fees:

  • Charge telecom providers $0.50 per GB to divert data through decentralized hotspots of the Helium network instead of traditional base stations.

Financial performance

  • Subscription users: Over 100,000 direct subscribers and more than 300,000 indirect WiFi diversion users.

  • Revenue: Generated seven-figure annual income from mobile subscriptions and operator diversion fees.

  • Forecast: With the expansion of operator partnerships, the potential annual revenue from just WiFi diversion could exceed $50 million.

Token economics

The HNT token of the Helium network is at the core of its incentive and payment structure:

  • Earn rewards: Hotspot operators earn HNT by providing coverage and transmitting data.

  • Use cases: Tokens are used for network transactions, payments for network services, and governance proposals.

  • Destruction mechanism: HNT tokens are destroyed when used to pay for network services, reducing supply.

Ways to participate and contribute

1. Hotspot deployment:

  • Purchase and set up hotspots compatible with the Helium network to provide coverage and earn HNT rewards.

  • Choose from 16 approved hardware types designed for IoT or mobile diversion.

2. Consumer plans:

  • Subscribe to a $20 monthly mobile plan on the Helium network for affordable mobile data coverage.

3. Operator partnerships:

  • Telecom providers can integrate with the Helium network to divert data traffic and reduce operational costs.

4. Governance and staking:

  • Stake HNT tokens to participate in network governance, propose suggestions, and vote on key upgrades.

Akash

Core issues addressed

Akash network aims to solve the high costs, scalability limitations, and centralization issues of traditional cloud providers like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. It addresses these issues by providing a decentralized cloud computing marketplace that allows users to profit from idle machines while lowering costs.

Target customers

  • AI developers: Need high-performance GPUs to train and deploy machine learning models.

  • Startups and enterprises: Require affordable and scalable cloud computing to support data processing, storage, and AI-driven applications.

Business model

Akash network generates revenue through the following ways:

  • Market transaction fees: Transaction fees are charged on computing leases and payments processed through the network.

  • Computing resource leasing: Revenue is shared from GPU and CPU leasing used for AI training and workloads.

  • Developer tools: Charge developers for API integration and SDK licensing fees when using their computing infrastructure.

  • Enterprise partnerships: Collaborate with AI labs and decentralized platforms to expand computing capacity.

Financial performance

  • Annual revenue: Akash network reported $2.5 million from computing leases and fees in 2024.

  • Growth rate: The demand for GPU computing resources has increased 33 times due to the popularity of artificial intelligence.

  • Network scale: Supports over 400 GPUs.

Token economics

Akash network uses AKT tokens for payments, governance, and incentives.

1. Use cases:

  • Payment: Buyers use AKT tokens to purchase computing resources.

  • Staking: Providers stake tokens to gain work opportunities and enhance reputation.

2. Incentives:

  • Providers earn AKT tokens for supplying computing resources.

  • Tokens are allocated based on uptime, performance, and task completion.

3. Governance:

  • Token holders can propose upgrades and vote on protocol changes.

4. Destruction mechanism:

  • Network fees are destroyed, reducing token supply.

Ways to participate and contribute

1. As providers:

  • Set up GPU, CPU, or storage servers on the Akash network.

  • List resources, set prices, and start earning AKT tokens.

2. As consumers:

  • Use the Akash network's web interface or command line interface (CLI) to lease computing resources.

  • Deploy AI training workloads, web services, and decentralized applications.

3. As developers:

  • Access APIs and SDKs to integrate Akash network services into applications.

  • Utilize GPU clusters for deep learning training or inference tasks.

4. Governance participation:

  • Stake AKT tokens and vote on network upgrades and resource pricing policies.

Looking ahead

The above is just a small portion of effective projects with sustainable income. In the coming months, the acceptance of DePIN will undoubtedly increase again and give rise to more sustainable, scalable, and profitable companies.

The companies mentioned above are consumer-facing, but another area that excites me is infrastructure. The fields where underlying blockchain, oracle services, smart contract services, middleware, token issuance services, etc. operate will benefit from the evolution of DePIN projects. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.