DePIN: A New Type of Eyewash in the Web3 Space?

In the Web3 world, the model of "economic incentives + scenario packaging" is constantly being replayed. From Filecoin mining machines to the GameFi craze, and now to the concept of DePIN (Decentralized Physical Infrastructure Networks), they all follow a similar path. However, although these projects are extremely popular in the short term, they often struggle to achieve long-term sustainable development.

The emergence of the DePIN concept has once again sparked heated discussions in the Web3 community. It not only proposes the slogan "mine by using," but also pushes the idea that "everything can be DePIN" to the extreme: from charging and calling to installing sockets, driving cars, and even drinking water, tokens can be earned as rewards. This method of combining real life with token economics seems to be more attractive and practically valuable than games in the virtual world.

However, when we delve into the actual operation and economic models of these projects, we find some concerning phenomena. Most DePIN device suppliers come from Huaqiangbei in Shenzhen, and the prices of these devices are often 30-50 times the wholesale price. Many hardware investors face huge losses, and the purchased DePIN tokens are also hard to rebound, leading investors to helplessly watch their assets shrink, waiting for the elusive "ecological landing" and "next round of airdrops." This phenomenon inevitably raises questions about whether DePIN truly represents innovation in infrastructure or if it is merely another round of "eyewash" hardware scams.

Project Case Analysis

Helium: From Popular to Niche

Helium was once a star project in the DePIN field, with its Helium Hotspot devices building a decentralized LoRaWAN network. However, from initially being in high demand to now being overlooked, Helium's story has become a typical case of "eyewash". The mining machines that used to be traded at $2500 each have now become a painful memory for investors. Due to the ban on nodes in China, a large number of investors have lost their investments, and the dream of "mining equals financial freedom" has completely shattered.

Hivemapper: high-priced hardware, sluggish returns

Hivemapper has launched a $549 dashcam that allows users to earn token rewards by uploading geographic data. However, the contradiction between the high hardware price and the sluggish token value is evident. The HONEY token has been underperforming for a long time, leading to a lengthy return on investment cycle. Furthermore, the quality and update frequency of its map data are questionable, and it remains unknown whether it can truly build a network comparable to Google Maps.

Jambo: The Web3 Mobile Myth of the African Market

Jambo has achieved initial success in the African market with the combination of "DePIN + Web3 wallet," selling over 400,000 mobile phones priced at $99 each. However, this is more due to the soaring APT token and the rapid development of the ecosystem, rather than the actual value of the project itself. The liquidity and value of the JAMBO token remain questionable, and the difficulty in achieving a closed-loop data sales system poses challenges to its long-term sustainability.

Ordz Game: The Web3 modified version of the nostalgic handheld console

The BitBoy handheld game console launched by Ordz Game is priced at 0.01 BTC and was sold out as soon as it went online. However, its gaming experience only stays at the level of retro handheld ROMs, lacking innovation. After the ORDG token was transformed into the GAMES token, it still lacks liquidity and real value. This is essentially a replica of the GameFi mining model, just with a different "handheld" shell.

TON Mobile: High Price Low Specification Android Phone

The TON phone was born out of the Telegram and TON craze, priced at nearly $500. However, users generally report that its performance is inferior to mainstream brand phones in the same price range. Despite the inclusion of a phone case and airdrop expectations, its configuration of 6G RAM and 128G storage is hard to satisfy. The quality of the airdrop is far inferior to that of the Solana phone, and the UI/UX lacks innovation, with ecosystem development still remaining at the paper stage.

Starpower: eyewash smart socket

Starpower, as a smart power DePIN project under the Solana ecosystem, sells hardware such as smart sockets. However, the price of $100 for a plug is clearly inflated, as similar products on other platforms are priced at around one-tenth of that. The project company is newly established, the technology is not transparent, and the ecological incentive model is unclear, relying more on "storytelling" to sell the devices.

The Essence and Future of DePIN

DePIN is essentially an extension attempt of the Web3 "economic incentive model" into the real world. In theory, it can decentralize real-world infrastructure, build a large-scale user network, and achieve fair incentives and transparent governance through token design. However, most current DePIN projects rely on "selling hardware" to profit from retail investors. The so-called "ecological empowerment" often depends on KOL packaging, narrative blueprints, and airdrop expectations to attract new users, while most project parties come from the hardware supply chain, obtaining exorbitant profits through high pricing.

Truly successful DePIN projects require strong supply and demand model design, transparent and continuous incentive mechanisms, and an in-depth understanding of hardware and infrastructure sectors. The biggest bubble in the current DePIN market is that most projects do not genuinely solve real problems, but rather package concepts to harvest users. When hardware becomes a tool for speculation and tokens turn into worthless "digital vouchers," with all narratives revolving around airdrop expectations, DePIN is likely to devolve into yet another Ponzi scheme of Web3.

In the future, we look forward to seeing DePIN projects that do not rely on hardware sales and storytelling marketing, but instead truly depend on actual usage and real income for survival. Only in this way can DePIN truly realize its vision of decentralized infrastructure and bring substantial innovation and value to the Web3 ecosystem.