DePIN Projects in the Web3 World: The Gap Between Ideal and Reality

In the Web3 space, we continuously witness the rise and fall of various innovative concepts. From the early craze of Filecoin mining machines to the subsequent GameFi frenzy, and now to the currently prominent DePIN (Decentralized Physical Infrastructure Network) projects, it seems that each cycle repeats a similar pattern: packaging various application scenarios with economic incentives.

The emergence of the DePIN concept has brought new imaginative space to the Web3 sphere. It is no longer limited to games in the virtual world, but extends its reach to all aspects of real life. Charging, making calls, installing sockets, driving cars, and even drinking water may become avenues for acquiring tokens. This attempt to closely integrate the real world with the digital economy seems to be more convincing and practical than a purely gamified model.

However, when we take a closer look at the actual operations and economic models of these projects, we find some concerning phenomena. A large number of DePIN device suppliers are concentrated in Huaqiangbei, Shenzhen, and the prices of these devices are often dozens of times the wholesale price. Many investors find themselves in a situation of losses, where not only is it difficult to recover hardware investments, but the purchased DePIN tokens also have almost no appreciation potential. This phenomenon raises suspicions about whether these so-called infrastructure innovations are just another round of old scams dressed in new clothing.

Project Case Analysis

Helium: From the Spotlight to Being Ignored

Helium was once a star project in the DePIN field, building a decentralized LoRaWAN network through Helium Hotspot devices. The project also collaborated with large telecom companies to launch attractive mobile communication services. However, the crazy speculation on device prices (soaring from a few dozen dollars to $2500) ultimately led to a painful outcome. Domestic nodes were blocked, the value of mining machines plummeted, and investors suffered heavy losses.

Hivemapper: The Dilemma of High-Priced Dashcams

Hivemapper has launched a dashcam priced at $549, promising users token rewards for uploading geographic data. However, the significant gap between the high hardware price and the sluggish token value makes the return on investment period exceptionally long. Additionally, the limitations in data quality and coverage raise doubts about whether it can truly become a strong competitor to Google Maps.

Jambo: The Web3 Mobile Myth in the African Market

Jambo has launched a Web3 phone priced at $99 in the African market, featuring wallet functionality, and sales have been considerable. However, this is more due to the tailwind from the rising prices of certain popular tokens rather than the actual value of the project itself. Users can earn JAMBO tokens, but the actual value and liquidity of these tokens remain questionable.

Ordz Game: A Web3 version of the nostalgic handheld console

The BitBoy handheld console launched by Ordz Game attempts to combine the "play-to-earn" model with a retro gaming experience. Despite a hot pre-sale, the project is essentially a simple copy of the GameFi model, lacking true innovation and long-term appeal.

TON Mobile: Expensive "Senior Phone" Experience

Although the TON phone has achieved good sales due to the popularity of Telegram and TON, user feedback has been less than satisfactory. The high price paired with ordinary hardware specifications, a lack of innovative user experience, and uncertain airdrop expectations have made it difficult for this phone to realize its promised value.

Starpower: The Confusingly High-Priced Smart Plug

Starpower, as a smart power DePIN project under the Solana ecosystem, has launched a smart plug priced at $100. However, similar products on other platforms are priced at about one-tenth of that. The project's technology is not transparent, and the incentive mechanism is unclear, resembling more of a pure "storytelling" marketing.

Reflection and Outlook

The core of the DePIN concept lies in extending the economic incentive model of Web3 into the physical infrastructure of the real world. Theoretically, this model can achieve decentralization of infrastructure such as communication, electricity, and maps, build large-scale user networks, and implement fair incentives and transparent governance through token design.

However, most DePIN projects on the current market seem to be more focused on making profits by selling high-priced hardware rather than truly building sustainable networks and ecosystems. These projects often rely on exaggerated marketing promotions, vague technical blueprints, and uncertain airdrop expectations to attract users, rather than solving real problems or creating genuine value.

To establish a truly successful DePIN project, a strong supply and demand model design, a continuously transparent incentive mechanism, and an in-depth understanding of the hardware and infrastructure sectors are required. The current market bubble mainly stems from the fact that most projects are not solving real problems, but are packaging concepts to attract investment.

Looking to the future, we hope to see more DePIN projects that do not rely on hardware sales or hollow promotions, but instead maintain operations through practical applications and real revenue. Only in this way can DePIN truly fulfill its promise of revolutionizing real-world infrastructure, rather than becoming just another cycle of Web3 bubbles.