BeInCrypto Global
--
How DePIN Tokenomics Is Changing Investor Expectations in Crypto
The DePIN Token Economics Report, authored by Tom Trowbridge—co-founder of Fluence and host of the DePINed Podcast—offers an insightful analysis of the emerging Decentralized Physical Infrastructure Network (DePIN).
DePIN combines crowdsourced infrastructure with crypto economics to provide useful services, making them similar to companies like Uber and Airbnb. However, unlike those centralized models, DePIN projects use tokens to compensate providers, and these tokens can appreciate as the network scales.
DePIN Is Changing the Game with Revenue-Driven Models
In a March report, Tom Trowbridge argues that DePIN stands out as a promising and more stable approach to decentralized finance. Unlike speculative tokens like meme coins, DePIN aims to generate revenue through traditional customer-based business models, ensuring the project’s viability beyond the crypto space.
This approach offers a more predictable path to success and also has the potential to reshape the broader crypto narrative.
“Traditional equity investors who historically have been unable to value the earlier generation of token projects will be interested in this traction and will bring a new level of diligence and a clear set of expectations when looking at DePIN token economics,” Tom Trowbridge wrote in the report.
Trowbridge further suggests that when DePIN projects gain substantial revenue from non-crypto customers, they could attract a new wave of institutional and retail investors. This shift would bring more attention to the token’s economics, adding a layer of scrutiny.
“DePINs are on the cusp of generating substantial revenue from paying customers which, when combined with compelling token economics that drives value to their tokens, will attract investor attention to this segment of crypto,” Trowbridge said.
One of the most interesting aspects of DePIN token economics is the buy-and-burn mechanism. The strategy uses a portion of the revenue from the project to buy and burn its native tokens. Thus creating powerful deflationary dynamics.
According to Trowbridge, this mechanism has the potential to decouple successful DePINs from the broader volatility of the crypto market. By burning tokens, the supply decreases, potentially increasing the value of the remaining tokens.
“DePIN revenue is not correlated to the crypto market, and DePIN is the only decentralized crypto sector to widely implement buy/burn. The potential impact on tokens will come as revenue scales independent of the crypto market dynamics, and the buy/burn dynamics become powerful,” Trowbridge argued.
Moreover, a key challenge for many crypto projects is the lack of regulation, audits, and the potential for revenue overstatements. DePIN addresses this by offering a transparent on-chain verification system for its revenue.
Unlike traditional financial audits, which can take weeks or months, DePIN’s model allows for immediate and more trustworthy public verification. This transparency ensures that investors can track real-time earnings, reducing the risks typically associated with crypto investments.
To further drive adoption, DePIN integrates fiat payments into its model, which helps mitigate the volatility of crypto rewards. Fiat-linked rewards provide stability for users, making the platform more accessible to a wider audience.
Decentralized governance in DePIN projects employs various voting models to give stakeholders a voice. However, Trowbridge emphasizes the importance of safeguards against rogue votes, ensuring fairness and transparency in decision-making. For DePIN’s token model to succeed, he says simplicity is key.
By linking physical infrastructure with decentralized networks, leveraging economic models like buy-and-burn, and integrating fiat payments, DePIN is paving the way for a new wave of sustainable, revenue-driven crypto projects.
“2025 will bring the launch of dozens of DePIN projects with a number of new token models, and we look forward to seeing the space continue to evolve,” the Fluence co-founder concluded.
DePIN combines crowdsourced infrastructure with crypto economics to provide useful services, making them similar to companies like Uber and Airbnb. However, unlike those centralized models, DePIN projects use tokens to compensate providers, and these tokens can appreciate as the network scales.
DePIN Is Changing the Game with Revenue-Driven Models
In a March report, Tom Trowbridge argues that DePIN stands out as a promising and more stable approach to decentralized finance. Unlike speculative tokens like meme coins, DePIN aims to generate revenue through traditional customer-based business models, ensuring the project’s viability beyond the crypto space.
This approach offers a more predictable path to success and also has the potential to reshape the broader crypto narrative.
“Traditional equity investors who historically have been unable to value the earlier generation of token projects will be interested in this traction and will bring a new level of diligence and a clear set of expectations when looking at DePIN token economics,” Tom Trowbridge wrote in the report.
Trowbridge further suggests that when DePIN projects gain substantial revenue from non-crypto customers, they could attract a new wave of institutional and retail investors. This shift would bring more attention to the token’s economics, adding a layer of scrutiny.
“DePINs are on the cusp of generating substantial revenue from paying customers which, when combined with compelling token economics that drives value to their tokens, will attract investor attention to this segment of crypto,” Trowbridge said.
One of the most interesting aspects of DePIN token economics is the buy-and-burn mechanism. The strategy uses a portion of the revenue from the project to buy and burn its native tokens. Thus creating powerful deflationary dynamics.
According to Trowbridge, this mechanism has the potential to decouple successful DePINs from the broader volatility of the crypto market. By burning tokens, the supply decreases, potentially increasing the value of the remaining tokens.
“DePIN revenue is not correlated to the crypto market, and DePIN is the only decentralized crypto sector to widely implement buy/burn. The potential impact on tokens will come as revenue scales independent of the crypto market dynamics, and the buy/burn dynamics become powerful,” Trowbridge argued.
Moreover, a key challenge for many crypto projects is the lack of regulation, audits, and the potential for revenue overstatements. DePIN addresses this by offering a transparent on-chain verification system for its revenue.
Unlike traditional financial audits, which can take weeks or months, DePIN’s model allows for immediate and more trustworthy public verification. This transparency ensures that investors can track real-time earnings, reducing the risks typically associated with crypto investments.
To further drive adoption, DePIN integrates fiat payments into its model, which helps mitigate the volatility of crypto rewards. Fiat-linked rewards provide stability for users, making the platform more accessible to a wider audience.
Decentralized governance in DePIN projects employs various voting models to give stakeholders a voice. However, Trowbridge emphasizes the importance of safeguards against rogue votes, ensuring fairness and transparency in decision-making. For DePIN’s token model to succeed, he says simplicity is key.
By linking physical infrastructure with decentralized networks, leveraging economic models like buy-and-burn, and integrating fiat payments, DePIN is paving the way for a new wave of sustainable, revenue-driven crypto projects.
“2025 will bring the launch of dozens of DePIN projects with a number of new token models, and we look forward to seeing the space continue to evolve,” the Fluence co-founder concluded.
Disclaimer: Includes third-party opinions. No financial advice. May include sponsored content. See T&Cs.
