The Rise of Decentralized Physical Infrastructure Networks: An Analysis of Three Successful Cases

Decentralization Physical Infrastructure Network (DePIN) is ushering in a wave of transformation across multiple industries. Although many early projects failed to achieve sustainability, some companies have successfully established profitable models by focusing on solving real-world problems. This article will delve into three typical cases.

Geodnet: Reshaping the Global Positioning System

Core Advantages

The Geodnet network significantly improves positioning accuracy, achieving a precision level 100 times greater than traditional GPS technology, reaching centimeter-level accuracy.

Service Objects

The network mainly serves industries that require high-precision geospatial data, including autonomous driving, agriculture, smart cities, national defense and security, and space exploration.

Business Model

Geodnet achieves profitability through multiple channels:

• Sell geospatial data to commercial clients
• Collect node participation fees
• Establish partnerships with relevant industries

In 2024, Geodnet reported a revenue increase of over 500% year-on-year, reaching 1.7 million dollars.

Token Ecosystem

Geodnet incentivizes participants with the GEOD token:

• Miners receive token rewards based on their contributions.
• Implement a token burn mechanism
• Each miner's average daily income is approximately $4.30
• Tokens are used for payments, staking, and governance within the network.

Participation Method

• Become a miner: Purchase equipment and connect to the network
• Use the network: Subscribe or purchase calibration data
• Develop Applications: Create industry solutions based on Geodnet data
• Participate in governance: Stake tokens and vote

Helium: Pioneer of Decentralization Wireless Networks

Core Advantages

Helium has created a Decentralization wireless network that provides an economical, scalable, and resilient connectivity solution for mobile and IoT devices.

Service Object

• Consumers: Offer low-cost unlimited data plans
• Telecom providers: Achieve WiFi offloading to reduce infrastructure costs
• IoT device manufacturers: Provide LoRaWAN protocol connectivity
• Enterprises and institutions: deploy dedicated wireless networks

Business Model

Helium mainly generates revenue in two ways:

• Direct-to-consumer mobile plan
• Charge the telecom provider for WiFi offloading fees

Financial Performance

• Over 100,000 subscribed users, with more than 300,000 indirect WiFi diversion users.
• Annual income reaches seven figures
• The expected annual revenue potential of WiFi traffic diversion services exceeds $50 million.

Token Ecosystem

HNT token plays a central role in the Helium network:

• Hotspot operators earn HNT by providing coverage and transmitting data.
• Tokens are used for network transactions, service payments, and governance.
• Implement a token burn mechanism

Participation Method

• Deployment Hotspot: Purchase and set up compatible devices
• Subscription Plan: Use Helium Network Mobile Services
• Carrier cooperation: Integrating with Helium to offload data
• Participate in governance: Stake tokens and vote

Akash: A New Paradigm for Decentralization Cloud Computing

Core Advantages

The Akash Network addresses the high costs, scalability limitations, and centralization issues of traditional cloud services through a decentralized cloud computing marketplace.

Service Object

• AI Developers: Provide high-performance GPU resources
• Startups and enterprises: Providing affordable cloud computing solutions

Business Model

Akash achieves profitability through multiple channels:

• Charge market transaction fees
• Share from the rental of computing resources
• Provide developer tools and API services
• Collaborate with artificial intelligence laboratories and Decentralization platforms

Financial Performance

• The 2024 report calculates rental and fee income of 2.5 million dollars.
• GPU computing resource demand increased by 33 times
• Supports over 400 GPUs

Token Ecosystem

The AKT token plays multiple roles in the Akash network:

• Used for payment, staking, and governance
• Incentivize providers to supply computing resources
• Implement a token burning mechanism

Participation Method

• Become a provider: Set up servers and lease resources
• As a consumer: Renting computing resources to deploy applications
• Developer Integration: Utilize API and SDK to develop applications
• Participate in governance: stake tokens and vote

Future Outlook

The development momentum in the DePIN field is strong, and it is expected to give rise to more sustainable, scalable, and profitable projects. In addition to consumer-facing applications, underlying infrastructures such as blockchain, oracle services, and smart contract platforms will also benefit from the development of DePIN.