Pantera Partners: Which DePIN projects have real revenue?DePin Case Studies

DePin Case Studies

Author: Paul Veradittakit, Partner at Pantera Capital

Compiled by: Luffy, Foresight News

Decentralized Physical Infrastructure Networks (DePIN) represent the fusion of blockchain and infrastructure networks. Currently, DePIN exists in industries such as energy, telecommunications, storage, artificial intelligence, and data collection.

During the last crypto cycle, many projects targeted market opportunities with the DePIN trend, but when their core products failed to gain sufficient traction 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 profitability by solving existing problems, even without relying on the flywheel effect of token economics. Let's take a look at some of these cases.

Geodnet

Core Problem Solved

Traditional Global Positioning Systems (GPS) often lack the precision required for advanced applications, which demand centimeter-level accuracy rather than meter-level. The Geodnet network's solution improves 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

Revenue Model

• Data licensing: Selling geospatial data to commercial clients.
• 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 uses the native token GEOD to incentivize participants:

• Miners earn tokens based on data contributions and network uptime.
• Burn mechanism: Tokens are burned during data transactions, introducing a deflationary mechanism.
• Daily earnings: Each miner's average daily earnings are approximately $4.30, with an expected payback period of 3 - 4 months.
• Circulation: Token distribution ensures liquidity while incentivizing early adopters.
• Token use: Used for payments, staking, and governance within the network.

Ways to Participate and Contribute

1. Become a miner:

• Purchase mining equipment (costs between $500 - $700).
• Set up and connect the mining machine to the network, uploading 20 - 40GB of data monthly.

1. Use the network:

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

1. Develop applications:

• Develop software for specific industries based on Geodnet network data.

1. Governance:

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

Helium

Core Problem Solved

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

Target Customers

• Consumers: Unlimited data for $20 per month using the Helium decentralized network.
• Telecom providers: WiFi offloading for major operators, reducing their infrastructure costs.
• IoT device manufacturers: Providing connectivity for low-power IoT devices via LoRaWAN protocol.
• Enterprises and institutions: Helping organizations deploy dedicated wireless networks for asset tracking, sensors, and environmental monitoring.

Revenue Model

Helium network generates revenue through two main avenues:

1. Direct-to-consumer mobile plans:

• Offering unlimited data plans for $20 per month, allowing users to utilize both Helium network hotspots and partner networks (like T-Mobile).

1. Carrier WiFi offloading fees:

• Charging telecom providers $0.50 per GB, enabling them to offload data through Helium network's 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 carrier offloading fees.
• Forecast: With the expansion of carrier partnerships, potential annual revenue from WiFi offloading alone could exceed $50 million.

Token Economics

The Helium network's HNT token is central to its incentive and payment structure:

• Earning rewards: Hotspot operators earn HNT by providing coverage and transmitting data.
• Use: Tokens are used for network transactions, paying 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 a hotspot compatible with the Helium network to provide coverage and earn HNT rewards.
• Choose from 16 approved hardware types designed for IoT or mobile offloading.

1. Consumer plans:

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

1. Carrier partnerships:

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

1. Governance and staking:

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

Akash

Core Problem 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 this by providing a decentralized cloud computing marketplace that allows users to profit from idle machines while lowering costs.

Target Customers

• AI developers: Need high-performance GPUs to train and deploy machine learning models.
• Startups and enterprises: Require affordable and scalable cloud computing to support data processing, storage, and AI-driven applications.

Revenue Model

The Akash network generates revenue through:

• Marketplace transaction fees: Charging transaction fees on compute leases and payments processed through the network.
• Compute resource leasing: Earning a share of revenue from GPU and CPU leasing used for AI training and workloads.
• Developer tools: Charging API integration and SDK licensing fees to developers using its computing infrastructure.
• Enterprise partnerships: Collaborating with AI labs and decentralized platforms to expand computing capabilities.

Financial Performance

• Annual revenue: The Akash network reported $2.5 million from compute leasing and fees in 2024.
• Growth rate: Demand for GPU computing resources has increased 33 times due to the rise of AI.
• Network scale: Supports over 400 GPUs.

Token Economics

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

1. Use:

• Payments: Buyers use AKT tokens to purchase computing resources.
• Staking: Providers stake tokens to gain work opportunities and enhance reputation.

1. Incentives:

• Providers earn AKT tokens for supplying computing resources.
• Tokens are distributed based on uptime, performance, and task completion.

1. Governance:

• Token holders can propose upgrades and vote on protocol changes.

1. Burn mechanism:

• Network fees are burned, 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.

1. As a consumer:

• Rent computing resources using the Akash network's web interface or command-line interface (CLI).
• Deploy AI training workloads, web services, and decentralized applications.

1. As a developer:

• Access APIs and SDKs to integrate Akash network services into applications.
• Utilize GPU clusters for deep learning training or inference tasks.

1. Governance participation:

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

Looking Ahead

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

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