Three major projects take you to understand the DePin track

Author: Paul Veradittakit; Translation: Wu Zhu, Golden Finance

Decentralized Physical Infrastructure Network (DePin) is the combination of blockchain and infrastructure network, which is currently applied in industries such as energy, telecommunications, storage, artificial intelligence, and data collection.

In the previous crypto cycle, many projects took advantage of the speculation of DePin and discovered the problem of huge market opportunities, but when the core product failed to gain attention in terms of demand and supply, they turned to the economics of crypto tokens.

However, for those companies that survived, many spent time building their infrastructure, so that many created sustainable revenues by solving existing problems, and even independent of the token economic flywheel. Let’s take a look at them!

Geodnet (Real-Time Kinematics)

Core issues being addressed

Traditional GPS systems typically lack the precision required for advanced applications, which require centimeter-level accuracy rather than meter-level accuracy. Compared to traditional GPS technology, Geodnet’s solution can improve positioning accuracy by 100 times.

target customer

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

• Self-driving cars

• Agriculture

• Smart City

• National Defense and Security

• Space Exploration

Profit Model

• Data License: Selling geospatial data to commercial customers.

• Node participation fee: Cost associated with installing and using miners.

• Partnership: Collaborate with autonomous systems and other industries to integrate Geodnet services into existing workflows.

In 2024, Geodnet reported a year-on-year revenue growth of over 500%, reaching 1.7 million USD, with an annualized operating rate exceeding 2.2 million USD by the end of the year.

Token Economics

Geodnet uses its native GEOD token to incentivize participants:

• Miners earn tokens based on data contributions and the normal operation time of the network.

• Destruction Mechanism: Tokens are destroyed during data transactions, increasing deflationary pressure.

• Daily Earnings: The average daily earnings per miner is about $4.30, with an estimated 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 mining equipment (priced between $500 and $700).

• Set up a miner and connect it to the network, uploading 20-40GB of data per month.

2. Use the network:

• Access RTK correction data by subscribing or purchasing directly.

3. Develop Applications:

• Build software for specific industries using Geodnet’s data.

4. Governance:

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

Helium (Wireless Infrastructure)

Solving the core issue

Traditional mobile network operators (such as T-Mobile) require significant capital expenditure to build mobile signal towers, maintain infrastructure, and expand coverage. Helium addresses this issue by creating a decentralized wireless network that leverages community-owned hotspots to provide cost-effective, scalable, and resilient connectivity for mobile and IoT devices.

Target Customer

1. Consumers - through its decentralized network to provide affordable mobile plans ( $20 per month ), providing unlimited data.

2. Telecommunication service providers - provide WiFi offloading function for major carriers to reduce their infrastructure costs.

3. IoT device manufacturers - providing connectivity for low-power IoT devices through the LoRaWAN protocol.

4. Enterprise - 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 plan:

• Use Helium hotspots and partner networks (such as T-Mobile) to provide a $20 unlimited plan per month.

2. Operator WiFi offloading fee:

• Charge telecom providers $0.50/GB to offload data via Helium’s decentralized hotspots (instead of traditional mobile signal towers).

Financial Performance

• Users: Over 100,000 direct mobile users and over 300,000 indirect WiFi offload users.

• Income: Generated seven-figure annual on-chain income through mobile subscriptions and operator unloading fees.

• Prediction: With the expansion of operator partnerships, the estimated potential revenue from WiFi offloading alone exceeds 50 million dollars annually.

Token Economics

Helium’s HNT token is at the core of its incentive and payment structure:

1. Earn rewards:

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

2. Practicality:

• Tokens are used for network transactions, data usage payments, and governance proposals.

3. Destruction Mechanism:

• HNT tokens will be burned when used to pay for network services, reducing the supply and creating deflationary pressure.

How to participate, contribute, and access Helium

1. Hotspot Deployment:

• Purchase and set up a Helium-compatible hotspot to provide network coverage and earn HNT rewards.

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

2. Consumer Plan:

Subscribe to the $20/month plan for Helium Mobile and enjoy affordable mobile data coverage.

3. Operator Partnership:

• Telecom providers can integrate with Helium to offload data traffic and reduce operating costs.

4. Governance and Staking:

• Staking HNT tokens to participate in network governance, propose upgrade suggestions, and vote on key changes.

Akash (Computing)

Core issues being addressed

Akash solves the high cost, scalability limitations, and centralization issues of traditional cloud computing providers such as AWS, Google Cloud, and Microsoft Azure. Akash addresses this by providing a decentralized cloud computing marketplace, allowing users to monetize idle machines at a lower cost.

Target Customers

1. AI developers – High-performance GPUs are needed to train and deploy machine learning models.

2. Startups and enterprises - need economical and scalable cloud computing to support data processing, storage, and AI-driven applications.

Income Model

Akash generates revenue in the following ways:

1. Market fee - transaction fee charged for calculating leases and processing payments through the network.

2. Computing resources leasing - Earn a portion of the income generated from AI training and workloads by leasing GPU and CPU.

3. Developer Tools - Use its infrastructure to monetize API integration and SDK licensing fees for developers.

4. Enterprise Partnership - Collaborate with AI laboratories and decentralized platforms to expand computing capabilities.

Financial Performance

• Annual Revenue: The Akash report states that leasing and fee revenue will reach 2.5 million USD by 2024.

• Growth rate: Driven by AI adoption, the demand for GPU computing resources has increased by 33 times.

• Network scale: Supports over 400 GPUs

Token Economics

Akash uses AKT tokens for payment, governance, and incentives.

1. Practicality:

• Payment - Buyers use AKT tokens to pay for computing resource fees.

• Staking - Providers stake tokens to ensure the operation and enhance reputation.

2. Incentives:

• The provider earns AKT tokens by providing computing resources.

• Tokens are allocated based on normal operation time, performance, and job completion.

3. Governance:

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

4. Destruction Mechanism:

• Fees are burned, reducing the token supply and increasing deflationary pressure.

How to participate, contribute, and access Akash

1. As a provider:

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

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

2. As a consumer:

• Rent computing resources using Akash Web interface or CLI.

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

3. As a developer:

• Visit the API and SDK to integrate Akash’s services into your applications.

• Use 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 short list of some projects that are viable and have sustainable income. The next few months will undoubtedly see an increase in the acceptance of DePin and the emergence of more sustainable, scalable, and profitable companies.

These companies are consumer-facing, but another aspect that excites me is the infrastructure. Companies in areas such as underlying blockchain, oracle services, smart contract services, middleware, integration, token issuance services, etc. will benefit greatly from the increasing use of the DePin project. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.