Original title: DePin Case Studies
By Paul Veradittakit, Partner at Pantera Capital
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 the projects that survived, many companies spent time building infrastructure, achieving sustainable profitability by solving existing problems, even without relying on the flywheel effect of token economics. Let's look at some of these cases.
Geodnet
Core Problems Addressed
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 solution improves positioning accuracy by 100 times compared to traditional GPS technology.
Target Customers
The Geodnet Network serves industries that depend 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 Fees: Fees associated with the installation and usage 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-over-year revenue growth of over 500%, reaching $1.7 million.
Token Economics
Geodnet Network incentivizes participants with the native token GEOD:
· Miners earn tokens based on data contributions and network uptime.
· Burn Mechanism: Tokens are burned during data transactions, introducing a deflationary mechanism.
· Average Daily Earnings: The average daily earnings per miner are approximately $4.30, with an expected ROI period of 3 - 4 months.
· Circulation: The distribution of tokens ensures liquidity while incentivizing early adopters.
· Token Use: For payments, staking, and governance within the network.
Ways to Participate and Contribute
1. Become a Miner:
· Purchase mining equipment (cost between $500 - $700).
· Set up and connect mining machines to the network, uploading 20 - 40GB of data monthly.
2. Use the Network:
· Access real-time kinematic (RTK) correction data through subscription or direct purchase.
3. Develop Applications:
· Develop software based on data from the Geodnet Network for specific industries.
4. Governance:
· Participate in protocol governance by staking GEOD tokens and voting on proposals.
Helium
Core Problems Addressed
Traditional mobile network operators (like T-Mobile) require substantial capital expenditures to build base stations, maintain infrastructure, and expand coverage. Helium solves this issue by creating a decentralized wireless network that provides affordable, scalable, and resilient network connectivity for mobile and IoT devices, utilizing community-owned hotspots.
Target Customers
· Consumers: Pay $20 per month for unlimited data provided by the Helium decentralized network.
· Telecom Providers: Achieve WiFi offloading for major operators, reducing their infrastructure costs.
· IoT Device Manufacturers: Provide connectivity for low-power IoT devices via LoRaWAN protocol.
· Enterprises and Institutions: Help organizations deploy dedicated wireless networks for asset tracking, sensors, and environmental monitoring.
Business Model
The Helium Network generates revenue through two main avenues:
1. Direct-to-Consumer Mobile Packages:
· Offer a $20 monthly unlimited data plan, allowing users to utilize both Helium network hotspots and partner networks (like T-Mobile).
2. Operator WiFi Offloading Fees:
· Charge telecom providers $0.50 per GB to offload 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 offloading users.
· Revenue: Generated seven-figure annualized 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, payments 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 Packages:
· Subscribe to the Helium Network's monthly $20 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 Addressed
The Akash Network aims to solve the high costs, scalability limitations, and centralization issues of traditional cloud service 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: Require 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 by:
· Market Transaction Fees: Transaction fees are charged for computing leases and payments processed through the network.
· Computing Resource Leasing: Sharing revenue generated from leasing GPUs and CPUs used for artificial intelligence training and workloads.
· Developer Tools: Charging developers who use its computing infrastructure for API integration and SDK licensing fees.
· Corporate Partnerships: Collaborating with AI labs and decentralized platforms to expand computing capacity.
Financial Performance
· Annual Revenue: The Akash Network reported $2.5 million from computing leases and fees in 2024.
· Growth Rate: Due to the proliferation of artificial intelligence, the demand for GPU computing resources has increased by 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 their 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. Burn Mechanism:
· Network fees are burned, reducing the 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 web interface or command-line interface (CLI) of the Akash Network.
· Deploy artificial intelligence training workloads, web services, and decentralized applications.
3. As a Developer:
· 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 to vote on network upgrades and resource pricing policies.
Outlook
The above is just a small fraction of effective projects with sustainable revenue. In the coming months, the acceptance of DePIN will undoubtedly increase again, giving rise to more sustainable, scalable, and profitable companies.
The companies mentioned above are all 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., reside will benefit from the development of DePIN projects. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.
