The Rise of Decentralized Physical Infrastructure Networks: Sustainable and Profitable DePIN Project Cases

Decentralized Physical Infrastructure Networks (DePIN), as a fusion product of blockchain and infrastructure networks, have shown great potential in fields such as energy, telecommunications, storage, artificial intelligence, and data collection. Despite many projects failing to achieve sustainable development in the last crypto cycle, some companies have successfully become profitable by solving real-world problems, no longer fully relying on token economics. Let's explore a few successful cases.

Geodnet: High-precision geospatial data network

Core problems and solutions

Traditional GPS systems often fail to meet the centimeter-level accuracy requirements of advanced applications. The Geodnet network has increased positioning accuracy by 100 times through innovative technology, providing high-precision geospatial data support for multiple industries.

Target market

Geodnet's services are targeted at industries that require high-precision geospatial data, including autonomous driving, agriculture, smart cities, defense and security, and space exploration.

Profit Model

• Data Authorization: Selling high-precision geospatial data to commercial customers
• Node participation fee: Charges related to the installation and use of mining machines.
• Industry Collaboration: Collaborate with fields such as autonomous driving and agriculture to integrate services into existing workflows.

In 2024, Geodnet reported revenue growth of more than 500% year-over-year to $1.7 million.

Token Economics

Geodnet incentivizes network participants using the GEOD token:

• Miners are rewarded with tokens based on data contributions and network uptime
• Destroy tokens during the data trading process to introduce a deflationary mechanism.
• The average daily income for miners is about $4.30, with an expected payback period of 3-4 months.
• Token distribution ensures liquidity while incentivizing early adopters
• Tokens are used for payments, staking, and governance within the network.

Participation Method

1. Become a miner: Buy and set up mining equipment, connect to the network and upload data
2. Use the web: Subscribe or purchase real-time dynamic correction data directly
3. Develop Applications: Develop software for specific industries based on Geodnet network data.
4. Participate in governance: Stake GEOD tokens and vote on proposals

Helium: Decentralization Wireless Network

Core Issues and Solutions

Traditional mobile network operators face enormous infrastructure investment pressures. Helium provides economic, scalable, and flexible network connectivity for mobile and IoT devices by creating a decentralized wireless network that utilizes community-owned hotspots.

Target Customers

• Consumer: Offers an unlimited data plan for $20 per month
• Telecom providers: Realize WiFi offload and reduce infrastructure costs
• IoT device manufacturers: providing LoRaWAN connectivity for low-power devices
• Enterprises and institutions: Deploy dedicated wireless networks for asset tracking and environmental monitoring.

Profit Model

1. Direct-to-consumer mobile plan: $20 per month for unlimited data
2. Operator WiFi diversion fee: Charge the telecom provider a diversion fee of $0.50 per GB.

Financial Performance

• Subscribers: Over 100,000 direct subscribers and more than 300,000 indirect WiFi diversion users.
• Revenue: Generated seven-figure annual income from mobile subscriptions and carrier diversion fees.
• Forecast: The potential annual revenue of the WiFi offload business could exceed $50 million

Tokenomics

The Helium network uses HNT tokens as incentives and payment core:

• Hotspot operators earn HNT by providing coverage and transmitting data
• Tokens are used for network transactions, service payments, and governance
• Burn tokens when paying for network services, reducing supply

Participation Method

1. Deploy Hotspot: Purchase and set up compatible hotspots to provide network coverage and earn rewards.
2. Subscription Plan: Use the $20 monthly mobile data plan
3. Carrier cooperation: Telecom providers can integrate with Helium to offload data traffic
4. Governance & Staking: Stake HNT tokens to participate in network governance and decision-making

Akash: Decentralized Cloud Computing Market

Core Issues and Solutions

The Akash Network aims to address the high costs, scalability limitations, and centralization issues of traditional cloud computing providers. By creating a decentralized cloud computing marketplace, it allows users to profit from idle machines while reducing costs.

Target Customers

• Artificial Intelligence Developer: Requires high-performance GPU for training and deploying models
• Startups and Enterprises: Seeking economical and scalable cloud computing solutions

Profit Model

• Market trading fees: Fees charged for calculating rentals and payments
• Resource leasing: Share from GPU and CPU leasing income
• Developer tools: API integration and SDK licensing fees are charged
• Enterprise Cooperation: Collaborating with artificial intelligence laboratories and Decentralization platforms to expand computing power.

Financial Performance

• The 2024 report generates $2.5 million in revenue from computing leases and fees.
• GPU computing resource demand increased by 33 times
• Network supports over 400 GPUs

Tokenomics

Akash uses AKT tokens for payments, governance, and incentives:

• Buyers use AKT to purchase computing resources
• Staking tokens provided by the provider to gain job opportunities and enhance reputation
• Providers earn AKT by supplying resources
• Token holders can vote on protocol changes
• Network fees are burned, reducing the token supply

Participation Method

1. As a provider: Set up servers, list resources to earn AKT
2. As a consumer: Lease computing resources and deploy workloads
3. As a developer: Integrate Akash services using API and SDK
4. Governance Participation: Stake AKT tokens to participate in network decision-making

Future Outlook

The above case is just a small part of the successful realization of sustainable profitable DePIN projects. With increasing acceptance, more sustainable, scalable, and profitable projects will emerge in the coming months. In addition to consumer-facing projects, the underlying infrastructure sector also has a broad prospect, including underlying blockchains, oracle services, smart contract services, and more, which will benefit from the development of DePIN projects.