Original title: DePin Case Studies
Original article by Paul Veradittakit, Partner at Pantera Capital
Original translation: 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 the projects that survive, many companies have spent time building infrastructure, achieving sustainable profitability by solving existing problems without relying on the flywheel effect of token economics. Let's take a look at some of these cases.
Geodnet
Core problems solved
Traditional Global Positioning Systems (GPS) often lack the precision required for advanced applications, which demand centimeter-level rather than meter-level accuracy. The Geodnet network's solution improves positioning accuracy by 100 times compared to traditional GPS technology.
Target customers
The Geodnet network serves industries that rely on high-precision geospatial data, including:
· Autonomous vehicles
· Agriculture
· Smart cities
· Defense and security
· Space exploration
Revenue model
· Data licensing: Selling geospatial data to commercial clients.
· Node participation fees: Fees related to the installation and use of mining machines.
· Partnerships: Collaborating 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-over-year revenue growth 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.
· Burn mechanism: Tokens are burned during data transactions, introducing a deflationary mechanism.
· Daily average earnings: Each miner's average daily earnings are about $4.30, with an expected payback period of 3 - 4 months.
· Circulation: Token distribution ensures liquidity while incentivizing early adopters.
· Token uses: Used for payments, staking, and governance within the network.
Ways to participate and contribute
1. Become a miner:
· Purchase mining equipment (costing between $500 - $700).
· Set up and connect mining machines to the network, uploading 20 - 40GB of data monthly.
2. Use the network:
· Subscribe or directly purchase access to real-time kinematic (RTK) correction data.
3. Develop applications:
· Developing software for specific industries based on data from the Geodnet network.
4. Governance:
· Participate in protocol governance by staking GEOD tokens and voting on proposals.
Helium
Core problems solved
Traditional mobile network operators (such as T-Mobile) require substantial capital expenditures to build base stations, maintain infrastructure, and expand coverage. Helium solves this problem by creating a decentralized wireless network that provides affordable, scalable, and resilient network connections for mobile and IoT devices using community-owned hotspots.
Target customers
· Consumers: Paying $20 per month for unlimited data provided by the Helium decentralized network.
· Telecom providers: Achieving WiFi offloading for major carriers, reducing their infrastructure costs.
· IoT device manufacturers: Providing connectivity for low-power IoT devices through LoRaWAN protocol.
· Enterprises and institutions: Helping organizations deploy dedicated wireless networks for asset tracking, sensor, and environmental monitoring.
Revenue model
The Helium network generates revenue through two main avenues:
1. Direct-to-consumer mobile plans:
· Offers an unlimited data plan for $20 per month, allowing users to simultaneously use Helium network hotspots and partner networks (such as T-Mobile).
2. Operator WiFi offloading fees:
· Charge telecom providers $0.50 per GB, allowing them to offload data through Helium network decentralized hotspots rather than traditional base stations.
Financial performance
· Subscription users: Over 100,000 direct subscribers and more than 300,000 indirect WiFi offloading users.
· Revenue: Generated seven-figure annual revenue from mobile subscriptions and operator offloading fees.
· Forecast: With the expansion of operator partnerships, the potential annual revenue from WiFi offloading alone 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, payment for network services, and governance proposals.
· Burn mechanism: HNT tokens are burned 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 network coverage and earn HNT rewards.
· Choose from 16 approved hardware types designed for IoT or mobile offloading.
2. Consumer plans:
· Subscribe to the Helium network's $20 monthly mobile plan for affordable mobile data coverage.
3. Operator partnerships:
· Telecom providers can integrate with the Helium network to offload 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 problems solved
The Akash network aims to address the high costs, scalability limitations, and centralization issues of traditional cloud computing providers such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. It solves these problems by providing a decentralized cloud computing marketplace that allows users to profit from idle machines while reducing costs.
Target customers
· AI developers: Need high-performance GPUs to train and deploy machine learning models.
· Startups and enterprises: Need affordable and scalable cloud computing to support data processing, storage, and AI-driven applications.
Revenue model
The Akash network generates revenue in the following ways:
· Market transaction fees: Charging transaction fees for computing leases and payments processed through the network.
· Computing resource leasing: Sharing revenue generated from leasing GPUs and CPUs used for AI training and workloads.
· Developer tools: Charging API integration and SDK licensing fees to developers using its computing infrastructure.
· Corporate partnerships: Collaborating with AI labs and decentralized platforms to expand computing capabilities.
Financial performance
· Annual revenue: The Akash network reported $2.5 million from computing leases and fees in 2024.
· Growth rate: Due to the rise of artificial intelligence, the demand for GPU computing resources has grown 33 times.
· Network scale: Supports over 400 GPUs.
Token economics
The 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 job opportunities and enhance reputation.
2. Incentives:
· Providers earn AKT tokens by supplying computing resources.
· Tokens are allocated based on uptime, performance, and task completion.
3. Governance:
· Token holders can propose upgrade suggestions and vote on protocol changes.
4. Burn mechanism:
· Network fees are burned, reducing token supply.
Ways to participate and contribute
1. As a provider:
· Set up GPU, CPU, or storage servers on the Akash network.
· List resources, set prices, and start earning AKT tokens.
2. As a consumer:
· Rent computing resources using the Akash network's web interface or command-line interface (CLI).
· Deploy AI training workloads, web services, and decentralized applications.
3. As a developer:
· Access API and SDK to integrate Akash network services into applications.
· Leveraging GPU clusters for deep learning training or inference tasks.
4. Governance participation:
· Stake AKT tokens to vote on network upgrades and resource pricing policies.
Looking ahead
This is just a small portion of effective projects with sustainable revenue. In the coming months, the acceptance of DePIN will undoubtedly increase and give rise to more sustainable, scalable, and profitable companies.
The aforementioned companies are consumer-facing, but another area that excites me is infrastructure. The fields where these companies operate, such as underlying blockchain, oracle services, smart contract services, middleware, token issuance services, etc., will benefit from the development of DePIN projects, with examples including Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.
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