DePIN Projects in the Web3 Field: Innovation or Hardware Eyewash?

In the Web3 world, the model of economic incentives and scenario packaging is constantly being repeated. Following the previous waves of Filecoin mining machine frenzy and GameFi hype, the concept of DePIN (Decentralized Physical Infrastructure Network) has sparked industry discussions again. This concept not only continues the idea of "mining by usage" but also expands it to all aspects of daily life.

However, when we take a closer look at the actual implementation and economic models of these projects, we find concerning phenomena. Most suppliers of DePIN devices come from Huaqiangbei, Shenzhen, and the prices of these devices are often dozens of times the wholesale price. Many hardware investors face huge losses, and the purchased DePIN tokens are also difficult to recover, causing investors to watch their assets shrink, waiting for the distant ecological implementation and future airdrops.

Project Case Analysis

Helium: From Scarcity to Neglect

Helium was once a star project in the DePIN field, building a decentralized LoRaWAN network through Helium Hotspot devices and launching low-cost mobile communication services. However, the price of its devices skyrocketed from dozens of dollars to 2500 dollars, ultimately leading to significant losses for many investors. Especially in China, due to nodes being banned by the authorities, it resulted in widespread losses.

Hivemapper: High-priced dash cams are difficult to recoup costs.

Hivemapper has launched a dashcam priced at $549, allowing users to earn token rewards by uploading geographic data. However, due to the prolonged slump in token prices, questionable map data quality, and limited market coverage, users find it difficult to recoup their investment.

Jambo: The Web3 Mobile Dream for the African Market

Jambo has launched a Web3 phone priced at $99 in the African market, pre-installed with dApps and allowing users to earn JAMBO tokens. However, the actual value and liquidity of the tokens remain unclear, and there is a lack of a sustainable business model to support it.

Ordz Game: Web3 Modification of Retro Handheld Console

Ordz Game has launched the BitBoy handheld device priced at 0.01 BTC, but the gaming experience is basically stuck at the retro ROM level, lacking innovation. Its token also faces liquidity and value issues, making it difficult to achieve long-term player retention and profits.

TON phone: expensive ordinary Android device

Although the TON phone is priced close to 500 dollars, user feedback indicates that its performance is no different from that of ordinary Android phones. Despite expectations for airdrops, user experience and ecosystem development still need improvement.

Starpower: Questions about the high-priced smart plug

Starpower has launched smart power devices in the Solana ecosystem, but its $100 plug price is significantly higher than similar products on the market. The project lacks technical transparency and a clear ecological incentive mechanism, raising questions about its business model.

The Essence and Challenges of DePIN Projects

The DePIN project aims to extend the economic incentive model of Web3 into the physical infrastructure of the real world. Theoretically, this model can achieve the decentralization of infrastructure such as communication, electricity, and mapping, and realize fair incentives and transparent governance through token design.

However, most current DePIN projects mainly rely on hardware sales to profit, rather than truly building networks or solving real problems. Many projects attract users through KOL promotion, conceptual packaging, and airdrop expectations, but lack sustainable business models and real value creation.

Successful DePIN projects require strong supply and demand model design, continuous and transparent incentive mechanisms, and an in-depth understanding of the hardware and infrastructure sectors. Currently, most projects in the market are not solving real problems but are turning hardware into a tool for speculation and tokens into worthless digital vouchers.

In the future, we hope to see more DePIN projects that are sustained not by hardware sales or concept hype, but by real usage and revenue. Only then can DePIN truly become an innovative force in the Web3 space, rather than another round of eyewash.