Author: Paul Veradittakit; Edited by: Wu Zhu, Golden Finance
Decentralized Physical Infrastructure Networks (DePin) combine blockchain with infrastructure networks and are currently applied in industries such as energy, telecommunications, storage, artificial intelligence, and data collection.
In the last crypto cycle, many projects leveraged the hype around DePin, identifying problems with huge market opportunities, but when core products failed to gain traction in demand and supply, they turned to crypto token economics.
However, for those companies that survive, many have taken the time to build their infrastructure, allowing many to generate sustainable revenue by addressing existing problems, even independent of the token economics flywheel. Let's get to them!
Geodnet (Real-Time Kinematics)
Core issues being addressed
Traditional GPS systems often lack the precision required for advanced applications that need centimeter-level accuracy instead of meter-level. Compared to traditional GPS technology, Geodnet's solution improves positioning accuracy by 100 times.
Target customers
Geodnet serves industries that rely on high-precision geospatial data, including:
- Autonomous vehicles
- Agriculture
- Smart cities
- Defense and security
- Space exploration
Profit model
- Data licensing: Sell geospatial data to commercial clients.
- Node participation fees: Fees associated with miner installation and usage.
- Partnerships: Collaborate with industries like autonomous systems to integrate Geodnet services into existing workflows.
In 2024, Geodnet reported over 500% year-over-year revenue growth, reaching $1.7 million, with a run rate exceeding $2.2 million by year-end.
Token economics
Geodnet incentivizes participants using its native GEOD token:
- 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 ensures 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. Use the network:
- Access RTK correction data by subscribing or purchasing directly.
3. Developing applications:
- Use Geodnet's data to build software for specific industries.
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 by creating a distributed wireless network that leverages community-owned hotspots to provide affordable, scalable, and resilient connectivity for mobile and IoT devices.
Target customers
1. Consumers – Provide affordable mobile plans ($20/month) with unlimited data through their decentralized network.
2. Telecom providers – Provide WiFi offload capabilities for major carriers, reducing their infrastructure costs.
3. IoT device manufacturers – Provide connectivity for low-power IoT devices via LoRaWAN protocol.
4. Enterprises – Help 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:
- Offer a $20/month unlimited plan using Helium hotspots and partner networks (e.g., T-Mobile).
2. Carrier WiFi offload 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 over 300,000 indirect WiFi offload users.
- Revenue: Generated seven-figure annualized on-chain revenue through mobile subscriptions and carrier offload fees.
- Prediction: As carrier partnerships expand, potential yearly revenue from WiFi offload alone is estimated to exceed $50 million.
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. Utility:
- Tokens are used for network transactions, data usage payments, and governance proposals.
3. Burn mechanism:
- HNT tokens are destroyed 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 specifically designed for IoT or mobile offload.
2. Consumer plans:
- Subscribe to Helium Mobile's $20/month plan for affordable mobile data coverage.
3. Carrier partnerships:
- Telecom providers can integrate with Helium to offload data traffic, thereby 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 providers like AWS, Google Cloud, and Microsoft Azure. It solves this by offering a decentralized cloud computing marketplace that allows users to monetize idle machines at lower costs.
Target customers
1. AI developers – Need high-performance GPUs for training and deploying 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 by:
1. Market fees – Transaction fees charged for computing leases and payments processed through the network.
2. Computing resource leasing – Earn a portion of revenue generated from GPU and CPU leasing for AI training and workloads.
3. Developer tools – Monetize API integrations and SDK licensing fees using its computing infrastructure.
4. Enterprise partnerships – Collaborate with AI labs and decentralized platforms to scale computing capabilities.
Financial performance
- Annual revenue: Akash reports $2.5 million in computing leasing and fee revenue in 2024.
- Growth rate: Driven by AI adoption, demand for GPU computing resources has increased 33-fold.
- Network scale: Supports over 400 GPUs
Token economics
Akash uses AKT tokens for payments, governance, and incentives.
1. Utility:
- Payment – Buyers use AKT tokens to pay for computing resource fees.
- Staking – Providers stake tokens to ensure work and enhance reputation.
2. Incentives:
- Providers earn AKT tokens by providing 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:
- Rent 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 and sustainable revenue projects. The coming months will undoubtedly see an increase in the acceptance of DePin, resulting in 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, token issuance services, etc., are areas where companies will gain significant benefits from increased usage of DePin projects. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.
