Author: Paul Veradittakit; Compiled by: Wuzhu, Jinse Finance
Decentralized Physical Infrastructure Networks (DePin) combine blockchain with infrastructure networks and are currently applied in sectors such as energy, telecommunications, storage, artificial intelligence, and data collection.
In the previous crypto cycle, many projects leveraged the hype around DePin, identifying problems with huge market opportunities. However, when their core products failed to gain attention in terms of demand and supply, they turned to crypto token economics.
However, for those companies that survived, many took the time to build their infrastructure, creating sustainable revenue by addressing existing problems, even independent of the token economics flywheel. Let's look at them!
Geodnet (Real-Time Kinematics)
Core Issues Being Addressed
Traditional GPS systems often lack the precision required for advanced applications, which need centimeter-level accuracy rather than meter-level accuracy. Geodnet's solution can improve positioning accuracy by 100 times compared to traditional GPS technology.
Target Customers
Geodnet 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 Fee: Costs associated with miners installing and using the system.
- Partnerships: Collaborating with industries such as autonomous systems to integrate Geodnet services into existing workflows.
In 2024, Geodnet reported a year-over-year revenue increase of over 500%, reaching $1.7 million, with an annual run rate exceeding $2.2 million by year-end.
Token Economics
Geodnet uses its native GEOD token to incentivize participants:
- Miners earn tokens based on data contributions and network uptime.
- Burn Mechanism: Tokens are burned during data transactions, increasing deflationary pressure.
- Daily Earnings: The average daily earnings per miner is approximately $4.30, with an expected payback period of 3-4 months.
- Circulation: Token distribution to ensure liquidity while incentivizing early adopters.
- Token Utility: Used for payments, staking, and governance within the network.
Participation and Contribution
1. Become a Miner:
- Purchase miner equipment (priced between $500 and $700).
- Set up miners and connect them to the network, uploading 20-40GB of data monthly.
2. Using the Network:
- Access RTK correction data via subscription or direct purchase.
3. Develop Applications:
- Build software for specific industries using data from Geodnet.
4. Governance:
- Participate in protocol governance by staking GEOD tokens and voting on proposals.
Helium (Wireless Infrastructure)
Core Issues Being Addressed
Traditional mobile network operators (like T-Mobile) require significant capital expenditures to build cell towers, maintain infrastructure, and expand coverage. Helium solves this problem by creating a distributed wireless network that utilizes community-owned hotspots to provide affordable, scalable, and resilient connectivity for mobile and IoT devices.
Target Customers
1. Consumers – Offering affordable mobile plans ($20/month) with unlimited data through its decentralized network.
2. Telecom Providers – Offer WiFi offloading capabilities for major operators to reduce their infrastructure costs.
3. IoT Device Manufacturers – Providing connectivity for low-power IoT devices through the LoRaWAN protocol.
4. Enterprises – Helping organizations deploy private wireless networks for asset tracking, sensors, and environmental monitoring.
Revenue Model
Helium generates revenue through two main channels:
1. Direct-to-Consumer Mobile Plans:
- Provide a monthly unlimited plan for $20 using Helium hotspots and partner networks (e.g., T-Mobile).
2. Operator WiFi Offloading Fees:
- Charge telecom providers $0.50/GB to offload data through Helium's decentralized hotspots (instead of traditional cell towers).
Financial Performance
- Users: Over 100,000 direct mobile users and more than 300,000 indirect WiFi offload users.
- Revenue: Generated seven-figure annualized on-chain revenue through mobile subscriptions and operator offloading fees.
- Projections: With the expansion of operator partnerships, the estimated potential revenue from WiFi offloading alone exceeds $50 million annually.
Token Economics
Helium's HNT token is central to its incentive and payment structure:
1. Earn Rewards:
- Hotspot operators earn HNT by providing coverage and transmitting data.
2. Usability:
- Tokens are used for network transactions, data usage payments, and governance proposals.
3. Burn Mechanism:
- HNT tokens are burned when used to pay for network services, reducing supply and creating deflationary pressure.
How to Participate, Contribute, and Access Helium
1. Hotspot Deployment:
- Purchase and set up Helium-compatible hotspots 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 Helium Mobile's $20/month plan for affordable mobile data coverage.
3. Operator Partnerships:
- Telecom providers can integrate with Helium to offload data traffic, reducing operational costs.
4. Governance and Staking:
- Stake HNT tokens to participate in network governance, propose upgrades, and vote on key changes.
Akash (Computing)
Core Issues Being Addressed
Akash addresses the high costs, scalability limitations, and centralization issues of traditional cloud computing providers like AWS, Google Cloud, and Microsoft Azure. Akash solves this by providing a decentralized cloud computing marketplace that allows users to monetize idle machines at lower costs.
Target Customers
1. AI Developers – Need high-performance GPUs to train and deploy machine learning models.
2. Startups and Enterprises – Need affordable and scalable cloud computing to support data processing, storage, and AI-driven applications.
Revenue Model
Akash generates revenue through:
1. Market Fees – Transaction fees charged for computing rentals and payments processed through the network.
2. Computing Resource Leasing – Earn a portion of the revenue generated from GPU and CPU leasing for AI training and workloads.
3. Developer Tools – Monetizing API integration and SDK licensing fees for developers using its computing infrastructure.
4. Enterprise Partnerships – Collaborating with AI labs and decentralized platforms to expand computing capabilities.
Financial Performance
- Annual Revenue: Akash reports $2.5 million in computing rental and fee revenue for 2024.
- Growth Rate: Demand for GPU computing resources has increased 33-fold due to AI adoption.
- Network Scale: Supporting over 400 GPUs.
Token Economics
Akash uses AKT tokens for payments, governance, and incentives.
1. Usability:
- Payments – Buyers use AKT tokens to pay for computing resource costs.
- Staking – Providers stake tokens to ensure work and enhance reputation.
2. Incentives:
- Providers earn AKT tokens by offering computing resources.
- Tokens are allocated based on uptime, performance, and job completion.
3. Governance:
- Token holders can propose upgrades and vote on protocol changes.
4. Burn Mechanism:
- Fees are burned, reducing token supply and increasing deflationary pressure.
How to Participate, Contribute, and Access Akash
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:
- Lease computing resources using the Akash web interface or CLI.
- Deploy AI training workloads, web services, and decentralized applications.
3. As a Developer:
- Access APIs and SDKs to integrate Akash services into applications.
- Utilize GPU clusters for deep learning training or inference tasks.
4. Governance Participation:
- Stake AKT tokens to vote on network upgrades and resource pricing policies.
Outlook
The above is just a brief list of some viable projects with sustainable revenue. The coming months will undoubtedly see increased acceptance of DePin and the emergence of more sustainable, scalable, and profitable companies.
These companies are all consumer-facing, but another aspect that excites me is the infrastructure. The underlying blockchain, oracle services, smart contract services, middleware, integration, and token issuance services are areas where companies will gain significant benefits from increased use of DePin projects. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.
