DePIN in the Web3 World: Innovation or eyewash?

Recently, the concept of Decentralized Physical Infrastructure Network (DePIN) has sparked heated discussions in the Web3 community. This concept seems to be more imaginative than the previous GameFi, combining real-life scenarios such as electricity, communication, and transportation with token rewards. However, when we take a closer look at these projects, we find that many of them have issues.

Currently, most DePIN device suppliers come from Huaqiangbei in Shenzhen, and the prices are often 30-50 times the wholesale price. Many investors not only lose all their capital, but the DePIN tokens they purchased also have almost no chance of rebounding. This phenomenon raises doubts about whether this is truly infrastructure innovation or another round of hardware eyewash disguised as innovation.

Project Case Analysis

Helium: From Scarcity to Neglect

Helium was once a star project in the DePIN field, building a decentralized LoRaWAN network and launching low-cost mobile communication services. However, its devices went through a process of hype followed by collapse. Hotspot miners that once reached as high as $2500 have now become a burden for investors, with the price of the coin plummeting, leading many miners to suffer significant losses.

Hivemapper: High-priced cameras are difficult to break even.

Hivemapper has launched a dashcam priced at $549, where users earn token rewards by uploading geospatial data. However, the project faces several issues: a sluggish token price leads to a long payback period, doubts about the quality of the map data, and limited coverage. Although hardware sales revenue is considerable, this does not prove the health of its DePIN economic model.

Jambo: The Web3 Mobile Myth of the African Market

Jambo launched a Web3 phone priced at $99 in the African market, achieving considerable sales. However, its success relies more on the explosive growth of certain tokens rather than the inherent value of the project itself. The pre-installed dApp ecosystem on the phone struggles to support long-term usage needs, and the actual value and liquidity of the tokens remain questionable.

Ordz Game: The Web3 version of the retro handheld console

The Ordz Game has launched the BitBoy handheld device priced at 0.01 BTC, which essentially replicates the mining model of GameFi. The game experience lacks innovation, the tokens lack liquidity and real value, making it difficult to achieve long-term player retention and earnings.

TON mobile: the dilemma of high price and low configuration

Although the TON phone is priced close to $500, user reviews are poor, and it is considered to have insufficient specifications. Despite the expectation of airdrops, it actually lacks differentiation and innovation, making it difficult to establish itself in the highly competitive smartphone market.

Starpower: overpriced smart socket

Starpower has launched smart power devices in the Solana ecosystem, but its $100 socket price is much higher than similar products on the market. The project lacks technical transparency and a clear ecological incentive mechanism, resembling more of a "storytelling" hardware sale.

The Essence and Challenges of DePIN

DePIN is essentially an attempt to extend the Web3 economic incentive model into the real world. Theoretically, it has the potential to achieve the decentralization of infrastructure, build a large-scale user network, and realize fair incentives and transparent governance through token design.

However, most DePIN projects at the current stage rely on high-priced hardware sales to harvest retail investors. Many projects attract users through KOL packaging, airdrop expectations, and other methods, rather than truly building valuable networks.

A truly successful DePIN project requires a strong supply and demand model design, a transparent and continuous incentive mechanism, and a deep understanding of the hardware and infrastructure sectors. The main issue in the current market is that most projects are not solving real problems, but rather packaging concepts for hype.

In the future, we look forward to seeing DePIN projects that do not rely on hardware sales or empty narratives, but can sustain themselves through real usage and revenue. Only then can DePIN truly become a valuable innovation in the Web3 world, rather than another round of eyewash.