Author: Paul Veradittakit; Compiler: Wuzhu, Golden Finance
Decentralized Physical Infrastructure Network (DePin) is a combination of blockchain and infrastructure network, which has been applied to industries such as energy, telecommunications, storage, artificial intelligence, data collection, etc.
In the last crypto cycle, many projects took advantage of the hype of DePin and found problems with huge market opportunities, but when the core products failed to gain traction in both demand and supply, they turned to crypto token economics.
However, for those companies that survived, many companies took the time to build their infrastructure, so much so that many companies create sustainable income by solving existing problems, even independently of the token economics flywheel. Let's do them!
Geodnet (Real-time Kinematics)
Core Problems Being Solved
Traditional GPS systems generally lack the accuracy required for advanced applications, which require centimeter-level accuracy rather than meter-level accuracy. Geodnet's solution improves 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 customers.
- Node Participation Fees: Fees associated with installation and use by miners.
- Partnerships: Partnering with industries such as autonomous systems to integrate Geodnet services into existing workflows.
In 2024, Geodnet reported revenue growth of over 500% year-over-year to $1.7 million, with a run rate of over $2.2 million by the end of the year.
Token Economics
Geodnet uses its native GEOD token to incentivize participants:
- Miners earn tokens based on data contribution and network uptime.
- Burning Mechanism: Tokens are destroyed during data transactions, adding deflationary pressure.
- Daily Revenue: The average daily revenue per miner is approximately $4.30, with an expected payback period of 3-4 months.
- Circulation: Tokens are distributed 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 a mining device (price ranges between $500-$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 via subscription or direct purchase.
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)
Core Problems Being Solved
Traditional mobile network operators (like T-Mobile) require large capital expenditures to build cell towers, maintain infrastructure, and expand coverage. Helium solves this problem 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 – Offers affordable mobile plans ($20/month) with unlimited data through its decentralized network.
2. Telecom Providers – Provides WiFi offloading capabilities to major carriers, reducing their infrastructure costs.
3. IoT Device Manufacturers – Provides connectivity for low-power IoT devices through the LoRaWAN protocol.
4. Enterprises – Helps 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:
- Offers $20/month unlimited plans using Helium hotspots and partner networks (e.g. T-Mobile).
2. Carrier WiFi Offload Fees:
- Charges telecom providers $0.50/GB to offload data via Helium’s decentralized hotspots (rather than traditional cell towers).
Financial Performance
- Subscribers: 100K+ direct mobile subscribers and 300K+ indirect WiFi offload subscribers.
- Revenue: Generates seven-figure annualized on-chain revenues via mobile subscriptions and carrier offload fees.
- Forecast: Estimated revenue potential from WiFi offload alone to be over $50M/year as carrier partnerships expand.
Token Economics
Helium’s HNT token is at the heart of its incentive and payment structure:
1. Earn Rewards:
- Hotspot operators earn HNT for 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 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 offload.
2. Consumer Plans:
- Subscribe to Helium Mobile’s $20/month plan and enjoy 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 (Compute)
Core Problems Being Solved
Akash solves the high costs, scalability limitations, and centralization issues of traditional cloud computing providers such as AWS, Google Cloud, and Microsoft Azure. Akash solves this problem by providing a decentralized cloud computing marketplace that allows users to monetize idle machines at a lower cost.
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. Marketplace Fees – Charges transaction fees on compute rentals and payments processed through the network.
2. Compute Resource Rental – Earns a portion of the revenue generated from GPU and CPU rentals for AI training and workloads.
3. Developer Tools – Monetizes API integrations and SDK licensing fees for developers using its compute infrastructure.
4. Enterprise Partnerships – Partners with AI labs and decentralized platforms to scale compute capabilities.
Financial Performance
- Annual Revenue: Akash reports $2.5M in revenue from compute rentals and fees in 2024.
- Growth Rate: Demand for GPU compute resources has grown 33x, driven by AI adoption.
- Network Size: Supports 400+ GPUs
Token Economics
Akash uses AKT tokens for payments, governance, and incentives.
1. Utility:
- Payments – Buyers pay for compute resources using AKT tokens.
- Staking – Providers stake tokens to secure work and increase reputation.
2. Incentives:
- Providers earn AKT tokens by providing compute resources.
- Tokens are distributed 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 a GPU, CPU, or storage server on the Akash Network.
- List resources, set prices, and start earning AKT tokens.
2. As a Consumer:
- Rent compute 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’s services into your applications.
- Leverage 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 viable projects with sustainable revenue. The next few months will undoubtedly see increased adoption of DePin and produce more sustainable, scalable and profitable companies.
These companies are all consumer-facing, but another aspect that excites me is infrastructure. Base layer blockchains, oracle services, smart contract services, middleware, integrations, token issuance services, etc. are areas of companies that will benefit greatly from increased use of DePin projects. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.
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