Some DePIN projects have achieved sustainable profitability by solving existing problems, even without relying on the flywheel effect of token economy.

Author: Paul Veradittakit, Partner at Pantera Capital, a cryptocurrency investment firm. Compiled: Luffy，Foresight News

Decentralized Physical Infrastructure Network (DePIN) is the integration of memory blockchain and infrastructure network. Currently, DePIN exists in industries such as energy, telecommunications, storage, artificial intelligence, and data collection.

In the previous cryptocurrency cycle, many projects took advantage of the DePIN craze to target areas with huge market opportunities, but when the core product failed to gain sufficient appeal on both the supply and demand sides, they turned to cryptocurrency token economics.

However, in those surviving projects, many companies have spent time building infrastructure, achieving sustainable profits by solving existing problems, and even not relying on the flywheel effect of token economy. Let's take a look at some of these cases.

Geodnet

Core problem solved

Traditional Global Positioning Systems (GPS) often lack the precision required for advanced applications that require centimeter level accuracy rather than meter level accuracy. The solution of Geodnet network improves the positioning accuracy by 100 times compared to traditional GPS technology.

Target customers

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

Autonomous vehicle Agriculture Smart City Defense and Safety Space Exploration

profit model

Data authorization: Selling geospatial data to commercial clients. Node participation fees: fees related to the installation and use of mining machines. Partnership: Cooperate with agriculture, auto drive system and other industries to integrate Geodnet network services into the existing workflow.

In 2024, Geodnet Network reported a year-on-year revenue growth of over 500%, reaching $1.7 million.

Token Economics

Geodnet Network uses native token GEOD to incentivize participants:

Miners earn tokens based on data contributions and network uptime. Destruction mechani**: Destroying tokens during data transactions and introducing a deflationary mechani**. Daily average return: The daily average return for each miner is approximately $4.30, and the expected investment payback period is 3-4 months. Circulation: The distribution of tokens ensures liquidity while incentivizing early adopters. Token usage: Used for payment, staking, and governance within the network.

Participation and contribution methods

1. Becoming a miner:

Purchase mining equipment (cost between $500 and $700). Set up and connect the mining machine to the network, uploading 20-40GB of data per month.

2. Using the internet: Access real-time kinematic (RTK) calibration data through subscription or direct purchase.

3. Development application: Develop software for specific industries based on Geodnet network data.

4. Governance: Participate in protocol governance by pledging GEOD tokens and voting on proposals.

Helium

Core problem solved

Traditional mobile network operators, such as T-Mobile, require significant capital expenditures to build base stations, maintain infrastructure, and expand coverage. Helium The problem was solved by creating a decentralized wireless network that utilizes community owned hotspots to provide affordable, scalable, and resilient network connections for mobile and IoT devices.

Target customers

Consumers: You can use the unlimited data provided by the Helium decentralized network for $20 per month. Telecom operators: Implement WiFi diversion for major operators to reduce their infrastructure costs. IoT device manufacturers: Provide connectivity for low-power IoT devices through the LoRaWAN protocol. Enterprises and institutions: Assist organizations in deploying dedicated wireless networks for asset tracking, sensors, and environmental monitoring.

profit model

The Helium network generates revenue through two main channels:

1. Direct to consumer action plan: Provides an unlimited data plan for $20 per month, allowing users to use both Helium network hotspots and partner networks (such as T-Mobile) simultaneously.

2. Operator WiFi diversion fee: Charging telecom operators $0.50 per GB to divert data through decentralized hotspots on the Helium network instead of traditional base stations.

Financial performance

Subscription users: Over 100000 direct subscribers and over 300000 indirect WiFi diversion users. Revenue: Seven figure annualized revenue was generated from mobile subscriptions and operator diversion fees. Prediction: With the expansion of operator partnerships, it is expected that the potential annual revenue from WiFi streaming services alone may exceed $50 million.

Token Economics

The HNT token of Helium Network is the core of its incentive and payment structure:

Earn rewards: Hotspot operators earn HNT by providing coverage and tran**itting data. Usage: The token is used for online transactions, payment network services, and governance proposals. Destruction mechani**: HNT tokens are destroyed when used to pay for network services, reducing supply.

Participation and contribution methods

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 streaming.

2. Consumer Package: Subscribe to the Helium Network's monthly $20 mobile plan to get affordable mobile data coverage.

3. Operator partnership: Telecom operators can integrate with the Helium network, divert data traffic, and reduce operating costs.

4. Governance and Pledge: Pledge HNT tokens to participate in network governance, propose suggestions, and vote on key upgrades.

Akash

Core problem solved

Akash Network aims to address the high cost, scalability limitations, and centralization issues of traditional cloud computing providers such as Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. It addresses these issues by providing a decentralized cloud computing market that allows users to profit from idle machines while reducing costs.

Target customers

Artificial intelligence developers require high-performance GPUs to train and deploy machine learning models. New startups and enterprises require affordable and scalable cloud computing to support data processing, storage, and AI driven applications.

profit model

Akash Network generates revenue through the following methods:

Market transaction fees: Transaction fees are charged for calculating leases and payments processed through the network. Computing resource leasing: Sharing the revenue generated from GPU and CPU leasing used for artificial intelligence training and workloads. Developer Tools: By charging API integration and SDK licensing fees to developers who use its computing infrastructure. Enterprise partnership: Collaborate with artificial intelligence laboratories and decentralized platforms to expand computing capabilities.

Financial performance

Annual revenue: Akash Network reported in 2024 that it earned $2.5 million from calculating leases and expenses. Growth rate: Due to the popularity of artificial intelligence, the demand for GPU computing resources has increased by 33 times. Network scale: Supports over 400 GPUs.

Token Economics

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

1. Purpose:

Payment: The buyer uses AKT tokens to purchase computing resources. Pledge: Providers pledge tokens to obtain job opportunities and enhance their reputation.

2. Incentives:

The provider earns AKT tokens by supplying computing resources. Tokens are allocated based on normal running time, performance, and task completion status.

3. Governance: Token holders can propose upgrade suggestions and vote on protocol changes.

4. Destruction mechani**: Network fees are destroyed, reducing token supply.

Participation and contribution methods

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:

Lease computing resources using Akash's web interface or command-line interface (CLI). 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: Pledge AKT tokens and vote on network upgrades and resource pricing policies.

Looking ahead to the future

The above are just a **all number of effective and sustainable income generating projects. In the coming months, the acceptance of DePIN will undoubtedly increase again, giving rise to more sustainable, scalable, and profitable companies.

The above companies are all consumer oriented, but another area that excites me is infrastructure. The fields where these companies operate, such as underlying memory blockchain, oracle services, **art contract services, middleware, token issuance services, etc., will benefit from the development of the DePIN project. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.

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