When token incentives met physical infrastructure, Web3 said: Whatever the old system can do, I can do better. DePIN was born. What started with Filecoin in 2017 is gaining momentum. Projects like Akash, Helium, and Hivemapper show how decentralized models can undercut monopolies and break through investment boundaries. How does DePIN differ and offer such enormous potential?
DePIN Brings Real-World Business Opportunities for Web3
Decentralized Physical Infrastructure Networks—a new narrative that could compete with some of the world's most profitable businesses. This report examines the most successful DePIN projects, analyzes business models, and investigates the competitive landscape.
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Partners
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DIMO - a drivers’ network that’s powering the future of mobility by helping drivers get the most from their cars.
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ICP - a general-purpose blockchain that is designed to provide a World Computer that can replace traditional IT.
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Natix Network - the first AI-powered dynamic map supercharged by the DePIN and drive-to-earn community.
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2. DePIN - a crypto trend or a real-world opportunity?
DePIN rides a wave of explosive market growth, token incentives, and IoT integration. Is this a true paradigm shift or just another speculative trend? One thing is undeniable: there’s real-world impact. Other aspects need investigating: The financial surge, the technological promise, and the tense balance between supply and demand side. Not to forget the market itself. Let's dive in.
3. DePIN niches and related projects
The growing DePIN ecosystem offers solutions to real-world infrastructure problems in specialized niches. Key categories include computing, storage, wireless, and sensors. A look inside the workings of Akash’s decentralized compute marketplace, Hivemapper’s user-owned map data, and other projects reveals the novel economic models that drive them.
4. DePIN as a business concept
The benefits for society and the environment are now open on the table. Next, we need to understand how decentralized infrastructure projects generate revenue, manage costs, and compete in both Web3-native and traditional markets. You’re about to deep dive into the operational realities behind tokenized networks. Get ready for eye-opening facts on market challenges. Competition may not be what you think.
5. The third side of the DePIN market – platform development
Behind every DePIN network hides a critical third player: the platform itself. This chapter explores the service layer of DePINs: the infrastructure that connects physical devices to digital marketplaces, manages transactions, ensures governance, and determines how tokens flow. Case studies on IoTex and Lisk analyse trade-offs between decentralization and performance, and how technologies like AI, ZKPs, and even memecoins could influence the next evolution of DePINs.
Key Takeaways:
Our research found that
- DePIN stands out in the Web3 space as a niche with an extraordinary abundance of different approaches to running a business.
- Compared to other Web3 branches, DePIN businesses utilize more innovative revenue streams and incentive mechanisms that vary depending on the business sector (storage, computing, wireless networks, etc.) and project character. Unique examples include activity-based rewards and green incentives. Other projects nick popular online payment models such as upfront payment and subscription models.
- DePIN currently appears to have a realistic chance to take on Web2 competition and conquer part of the market controlled by internet giants like Google, Amazon, and Nvidia. However, for that to happen, DePIN business models need to become more sustainable and increase the efficiency of their revenue streams and incentivization mechanisms. Competition is tough and doesn’t sleep (right now, we’re talking about competing in the S&P 500, not TOP100 on CMC).
- The future of DePIN projects depends on how well they incentivize the demand side of their business. Decentralized physical infrastructure networks are highly encouraging to supply-side participants but still lack the ability to attract customers outside of Web3. The major challenge is to cross the chasm into the general, non-Web3 market.
- DePIN projects are creative in their methodologies and practices. We discovered numerous out-of-the-box approaches, which we will outline and explain in the report.
Led by
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Michał Moneta
Leader & Chief Strategy Officer
Conducted by
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Ananya Shrivastava
Research Analyst
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Ambreen Khral
Market Researcher
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Arin Soleymani
Head of Business Development
Contributors
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Ruth M. Trucks
Head of Content
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Lucas De Melo
UX Designer
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Boris Agatić
Data Scientist
How did we approach the research?
The research was based on the "grounded theory." It means we had no specific presumptions before staring the work. The "business" part of the analysis relied on the chosen elements of the Business Model Canvas (A. Osterwalder, Y. Pigneur) and was primarily based on the qualitative research methods.
Research limitation
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The research was conducted on the most renowned DePIN projects (listed in the overview), and did not attempt to include all projects in the market.
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We understand that the revenue streams or incentive mechanisms differ per DePIN type, and there are no one-size-fits-all solutions. Hence, we see the business overview and proposed models as inspirations, not ready-made blueprints.
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The analysis was limited to secondary research and, in some cases, interviews with company representatives. We didn’t have access to specific numbers regarding revenues or costs.
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The research topic can be explored further by conducting more interviews with individuals and companies using DePIN solutions – it’d help understand the demand side of DePIN more. We may explore this path in the future.