The Cycle of Economic Incentive Models in Web3: From GameFi to DePIN

In recent years, the Web3 world has been repeatedly following the model of "economic incentives + scenario packaging." From the frenzy of Filecoin miners a few years ago, to the popularity of GameFi in the last round, and now the rise of the DePIN (Decentralized Physical Infrastructure Network) concept, this model seems to be constantly evolving.

GameFi once attracted a lot of attention with the slogan "play games to earn tokens", but ultimately failed to establish a sustainable business model. Today, DePIN has reignited market enthusiasm with a broader range of application scenarios. From charging, communication to transportation, energy, and even various activities in daily life, the possibility of "mining" has been bestowed.

However, as we take a closer look at these projects, some concerning trends begin to emerge. Most DePIN devices come from Huaqiangbei in Shenzhen, and their prices are often tens of times higher than the wholesale price. Many investors have not only lost their hardware investments, but the tokens they purchased also struggle to recover, leaving them to watch their assets shrink while waiting indefinitely for "ecological landing" and "future airdrops."

DePIN Project Case Analysis

attempts in the communication field

A certain decentralized network project once enjoyed great popularity, with its devices once being speculated to $2500. However, due to regulatory issues and technical limitations, many users' devices ultimately became useless, and the token price also plummeted.

New attempts in map data

A project has launched a dashcam priced at $549, claiming that users can earn token rewards by uploading geographic data. However, the high hardware cost, low token value, and data quality issues make it difficult for users to recoup their expenses.

Web3 mobile exploration in Africa

A certain project launched a Web3 phone priced at $99 in the African market, claiming to have sold over 400,000 units. However, this seems more like a marketing campaign taking advantage of the rapid growth of a well-known token ecosystem, rather than a true technological innovation.

Web3 version of the retro handheld console

A project has launched a handheld gaming console priced at around 0.01 BTC, claiming to support "play and earn". However, in reality, the gaming experience is only at the level of retro ROMs, and the tokens lack real value and liquidity.

Other attempts

Various devices claiming to support Web3 features have also appeared on the market, such as smartphones and smart sockets related to a well-known messaging application. These products are often sold at prices several times higher than the market price, but their actual functionality is not much different from ordinary devices.

Future Prospects of DePIN

DePIN theoretically represents the extension of the Web3 economic incentive model into the real world. It has the potential to reshape infrastructure such as communication, power, and maps, build large-scale user networks, and achieve fair incentives and transparent governance through token design.

However, most DePIN projects at this stage rely on hardware sales to attract users. Many projects attract investment by packaging concepts and hyping airdrop expectations, rather than genuinely solving real problems.

Successful DePIN projects require a strong supply and demand model design, continuous transparent incentive mechanisms, and an in-depth understanding of the hardware and infrastructure fields. I look forward to seeing more DePIN projects in the future that do not rely on hardware sales and hollow narratives, but rather survive through real applications and revenue models.