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

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

In the last crypto cycle, many projects targeted those areas with huge market opportunities during the DePIN craze, but when the core products failed to gain sufficient attraction on both supply and demand sides, they turned to cryptocurrency token economics.

However, among the projects that survived, many companies spent time building infrastructure, achieving sustainable profits by solving existing problems without relying on the flywheel effect of token economics. Let's look at some of these cases.

OORT

Core Problems Solved

OORT is a one-stop decentralized AI solution that integrates data collection, storage, preprocessing, computation, AI model design/training/fine-tuning, and deployment.

Aimed at integrating global computing and storage resources, maximizing privacy and cost-effectiveness, and providing a set of enterprise-grade, decentralized solutions for generative AI and data-driven businesses.

Combining AI with DePIN, on one hand, encourages broader user participation in a decentralized manner through a comprehensive incentive model, while on the other hand, provides low-threshold, low-cost, privacy-protecting AI services for each user, thereby creating a trust-based global AI ecosystem.

Target Customers

OORT Cloud Services for businesses and individuals with AI and storage needs, including:

  • Autonomous Vehicles

  • Printer

  • PC/Mobile

  • Research Institutions

  • AI Enterprises

  • Individual

  • Agriculture

  • Smart Cities

  • Healthcare

  • Banking

  • Etc.

Business Model

  • Cloud Service Sales: Selling products such as OORT AI and storage to commercial customers.

  • Node Participation Fees: License fees related to DEN edge node devices.

  • Partnerships: As of June 2024, OORT has served over 10,000 enterprises and individual clients globally, including Dell, Lenovo Printing, Binance Smart Chain, etc.

  • Market Transaction Fees: Transaction fees charged for compute leasing and payments processed through the network.

  • Compute Resource Leasing: Revenue sharing from leasing GPUs and CPUs used for AI training and workloads.

  • Developer Tools: Charging developers for API integration and SDK licensing using its computing infrastructure.

  • Corporate Partnerships: Collaborating with AI labs and decentralized platforms to expand computing capacity.

Financial Performance

  • Annual Revenue: In 2024, the OORT Foundation repurchased and destroyed tokens valued at over $1.58 million, with actual revenue estimated at about $5 million.

  • Revenue Growth Rate: Expected to grow by about 3 to 4 times compared to 2023.

  • Global Node Network Scale: 65,840 nodes across 119 countries, with 39,659 edge nodes (an increase of about 8 times).

Token Economics

The OORT network incentivizes participants using its native token OORT:

  • Miners earn tokens based on data contribution and network uptime.

  • Burn Mechanism: The OORT Foundation will use up to 30% of profits to regularly repurchase and destroy its utility tokens to reduce the total supply of tokens, thereby gradually increasing the value of tokens. Token burn frequency: once every three months.

  • Average Daily Revenue: Currently, each miner's average daily output is about 2.875 OORT + subsidies.

  • Circulation: The distribution of tokens ensures liquidity while incentivizing early adopters.

  • Token Use: For payments, staking, and governance within the network.

Ways to Participate and Contribute (Consult WeChat VCBLO1)

1. Become a miner & witness node:

  • Purchase mining equipment (Consult WeChat VCBLO1)

  • Set up and connect the mining machine to the network (each device requires 500 OORT staked coins and a $60 license).

  • Participate as a witness node

2. Use OORT Cloud Services:

  • By directly purchasing OORT storage and AI assistant services.

3. Develop Applications:

  • Based on OORT cloud development projects.

4. Governance:

  • Participate in protocol governance by staking OORT tokens and voting on proposals.

Geodnet

Core Problems Solved

Traditional Global Positioning Systems (GPS) often lack the precision required for advanced applications, which require centimeter-level accuracy rather than meter-level. The Geodnet network's solution increases positioning accuracy by 100 times compared to traditional GPS technology.

Target Customers

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

  • Autonomous Vehicles

  • Agriculture

  • Smart Cities

  • Defense and Security

  • Space Exploration

Business Model

  • Data Authorization: Selling geospatial data to commercial customers.

  • Node Participation Fees: Fees related to the installation and use of mining machines.

  • Partnerships: Collaborating with industries such as agriculture and autonomous driving systems to integrate Geodnet network services into existing workflows.

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

Token Economics

The Geodnet network incentivizes participants using its native token GEOD:

  • Miners earn tokens based on data contribution and network uptime.

  • Burn Mechanism: Tokens are burned during data transactions, introducing a deflationary mechanism.

  • Average Daily Revenue: Each miner's average daily revenue is about $4.30.

  • Circulation: The distribution of tokens ensures liquidity while incentivizing early adopters.

  • Token Use: For payments, staking, and governance within the network.

Ways to Participate and Contribute

1. Become a Miner:

  • Purchase mining equipment (cost between $500 - $700).

  • Set up and connect the mining machine to the network, uploading 20 - 40GB of data monthly.

2. Use the Network:

  • Access real-time dynamic (RTK) correction data through subscription or direct purchase.

3. Develop Applications:

  • Data from the Geodnet network is used to develop software for specific industries.

4. Governance:

  • Participate in protocol governance by staking GEOD tokens and voting on proposals.

Helium

Core Problems Solved

Traditional mobile network operators (like T-Mobile) require massive capital outlays to build base stations, maintain infrastructure, and expand coverage. Helium solved this problem by creating a decentralized wireless network that utilizes community-owned hotspots to provide affordable, scalable, and resilient network connectivity for mobile and IoT devices.

Target Customers

  • Consumers: Pay $20 per month for unlimited data provided by the Helium decentralized network.

  • Telecom Providers: Achieve WiFi offloading for major operators to reduce their infrastructure costs.

  • IoT Device Manufacturers: Provide connectivity for low-power IoT devices via LoRaWAN protocol.

  • Enterprises and Institutions: Help organizations deploy dedicated wireless networks for asset tracking, sensors, and environmental monitoring.

Business Model

The Helium network generates revenue through two main avenues:

1. Direct-to-Consumer Mobile Packages:

  • Provide a monthly $20 unlimited data package, allowing users to use both Helium network hotspots and partner networks (e.g., T-Mobile) simultaneously.

2. Operator WiFi Offloading Fees:

  • Charge telecom providers $0.50 per GB, allowing them to offload data through Helium network decentralized hotspots instead of traditional base stations.

Financial Performance

  • Subscription Users: Over 100,000 direct subscribers and more than 300,000 indirect WiFi offloading users.

  • Revenue: Generated seven-figure annual revenue from mobile subscriptions and operator offloading fees.

  • Forecast: With the expansion of operator partnerships, the potential annual revenue from WiFi offloading alone may exceed $50 million.

Token Economics

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

  • Earn Rewards: Hotspot operators earn HNT by providing coverage and transmitting data.

  • Use Cases: Tokens are used for network transactions, payment for network services, and governance proposals.

  • Burn Mechanism: HNT tokens are burned when used to pay for network services, reducing supply.

Ways to Participate and Contribute

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 offloading.

2. Consumer Packages:

  • Subscribe to the Helium network's $20 monthly mobile package for affordable mobile data coverage.

3. Operator Partnerships:

  • Telecom providers can integrate with the Helium network to offload data traffic and reduce operating costs.

4. Governance and Staking:

  • Stake HNT tokens to participate in network governance, propose suggestions, and vote on key upgrades.

Akash

Core Problems Solved

The Akash network aims to address the high costs, scalability limitations, and centralization issues of traditional cloud computing providers like Amazon Web Services (AWS), Google Cloud, and Microsoft Azure. It does so by providing a decentralized cloud computing marketplace that allows users to monetize idle machines while reducing costs.

Target Customers

  • AI Developers: Require high-performance GPUs to train and deploy machine learning models.

  • Startups and Enterprises: Need affordable and scalable cloud computing to support data processing, storage, and AI-driven applications.

Business Model

The Akash network generates revenue through the following methods:

  • Market Transaction Fees: Transaction fees charged for compute leasing and payments processed through the network.

  • Compute Resource Leasing: Revenue sharing from leasing GPUs and CPUs used for AI training and workloads.

  • Developer Tools: Charging developers for API integration and SDK licensing using its computing infrastructure.

  • Corporate Partnerships: Collaborating with AI labs and decentralized platforms to expand computing capacity.

Financial Performance

  • Annual Revenue: The Akash network reported $2.5 million from compute leasing and fees in 2024.

  • Growth Rate: The demand for GPU computing resources has increased 33 times due to the popularity of artificial intelligence.

  • Network Scale: Supports over 400 GPUs.

Token Economics

The Akash network uses AKT tokens for payments, governance, and incentives.

1. Use Cases:

  • Payments: Buyers use AKT tokens to purchase computing resources.

  • Staking: Providers stake tokens to gain job opportunities and enhance reputation.

2. Incentives:

  • Providers earn AKT tokens by supplying computing resources.

  • Tokens are distributed based on uptime, performance, and task completion.

3. Governance:

  • Token holders can propose upgrade suggestions and vote on protocol changes.

4. Burn Mechanism:

  • Network fees are destroyed, reducing token supply.

Ways to Participate and Contribute

1. As a provider:

  • Set up GPU, CPU, or storage servers on the Akash network.

  • List resources, set prices, and start earning AKT tokens.

2. As a Consumer:

  • Use the Akash network's web interface or command line interface (CLI) to lease computing resources.

  • Deploy AI 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:

  • Stake AKT tokens to vote on network upgrades and resource pricing policies.

Looking Ahead

The above is just a small part of effective projects with sustainable income. In the coming months, the acceptance of DePIN will undoubtedly increase again, giving rise to more sustainable, scalable, and profitable companies.

The companies listed above are consumer-facing, but another area that excites me is infrastructure. Underlying blockchain, oracle services, smart contract services, middleware, token issuance services, etc., are fields where companies will benefit from the development of DePIN projects. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.