DePIN projects generate significant economic benefits from the outset.
Geodnet, a relatively recent project, has already achieved an annual recurring revenue (ARR) of about $1 million USD thanks to satellite miners. The broader DePIN ecosystem has already reported an ARR of over US$15 million. Such tangible successes demonstrate the economic viability of the sector, but with it comes a clear and pressing need for oversight:
DePIN network needs geolocation data for accurate mapping, distributed access to data from user devices, for example, often requires storage capacity for cloud-based solutions to operate efficiently. Due to the lack of clear guidelines, users and operators do not know the limits of data collection: how much data can DePIN access? What protections are in place to ensure confidentiality and prevent misuse? Without answers to these questions, users may be hesitant to participate, limiting the growth of the network.
The DePIN network relies on tokens that reward users for providing devices and data. Again, the lack of clear regulation raises questions about fair remuneration. How should a user's contribution be valued, especially if their device is important to the network? Lack of standardization can lead to predatory practices and undermine trust in the ecosystem.
While the DePIN network strives to decentralize, early-stage projects often rely on centralized leadership to make decisions, which creates gaps in governance and revenue sharing. gaps in transparency. Some DePIN projects have not disclosed their governance structure or #decentralization roadmap, leaving stakeholders unaware of who manages the network and how the project distributes revenues to users. This lack of transparency undermines the underlying principles of the sector and may discourage user participation in the quest for a truly decentralized system.
Aaron Boushey is the #IoTeX Product Manager.
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