DePIN should not just be "hardware issuing tokens"; what it truly aims to do is mobilize resources, run services, and drive the ecosystem. Therefore, for a project to survive, it must establish real nodes, ensure the network operates smoothly, and create a well-functioning mechanism. Only in this way can DePIN truly take over "physical infrastructure" from centralized giants and transform it into a Web3 public network that everyone can participate in, use, and earn from.
Having discussed AI + Web3, let's look at the DePIN project.
What does DePIN do?
In simple terms, DePIN is about taking the task of "building networks, investing in devices, and running services" out of the hands of large companies and handing it over to users to do together.
Whether it’s storage, bandwidth, computing power, electricity, or sensors, nodes, satellites, and charging piles, users can participate in deployment, contributing resources while earning token incentives.
But the reality is: the promotion is very enthusiastic, but the construction is very slow. Many DePIN projects have grand maps, but few devices are actually installed. Where is the problem?
1. Many nodes are just shells, and the network cannot be used:
Many DePIN projects desperately recruit people, "You buy the equipment, and I issue tokens," but after the equipment is deployed, there are no tasks, no demand, and no data. Relying solely on token incentives has turned into a "chain mining scam." You think you are participating in "shared computing power," but in reality, you are just connecting your home router to the chain; you think you are building a "decentralized 5G network," but in reality, you are just helping the project place a hotspot device on the windowsill. The network cannot operate, and applications cannot land. In 2024, 60% of DePIN projects were criticized for service interruptions.
2. Incentive design is singular, and the economic model is unbalanced:
DePIN is essentially "mining + operation," requiring output, costs, and real usage. However, many projects only incentivize deployment and not usage, resulting in a bunch of "zombie nodes" that no one calls upon.
Inflation control is often unbalanced as well, with token prices relying on speculative hype; once new traffic projects are lost, it collapses. Just like a popular project in 2023, which deployed tens of thousands of nodes, but the active usage rate was less than 5%, leading to a crash. In 2024, 70% of DePIN project tokens fell over 80% within six months.
3. High thresholds, poor experience, users cannot manage:
Many DePIN projects have high thresholds, requiring the purchase of specialized equipment, installation of firmware, connection to wallets, and understanding of Web3 operations. Some hardware manufacturers take advantage of "mining machine marketing," selling high-priced equipment, leaving users confused about what they bought.
Additionally, with devices unable to connect to the chain, lack of operational support, and chaotic profit settlement, user experience is extremely poor, becoming a representative track of "being trapped by Web3."
4. Lack of application support, difficult to self-circulate:
For DePIN to last, it cannot rely solely on selling devices and issuing tokens to attract people; it must have real demand—like who is using your bandwidth? Who needs your sensor data? Who is scheduling your node resources?
However, in reality, many projects have failed to connect to actual applications in Web2 or Web3, merely running empty networks and hyping narratives without creating a supply-demand closed loop.
Now, looking at this DePIN project, what problems does it solve?
You say you are genuinely building; can your nodes run actual tasks? Is there real load, real traffic, and real income?
You say your model is stable; does the incentive consider both "deployment + usage"? Is there a mechanism to penalize ineffective nodes and prevent inflation?
You say you want to land; has the deployment threshold been lowered? Are there developers who can connect? Are there real users using it?
Ultimately, we must return to three points:
Is your network genuinely running tasks, or is it just "lighting up points on a map"? Has "usable infrastructure" been formed?
Is your incentive mechanism healthy? Can it drive nodes to operate continuously and attract real application calls?
Does your system have real users, real income, and a real closed loop? Can it support a "decentralized service network"?
DePIN should not just be "hardware issuing tokens"; what it truly aims to do is mobilize resources, run services, and drive the ecosystem. Therefore, for a project to survive, it must establish real nodes, ensure the network operates smoothly, and create a well-functioning mechanism. Only in this way can DePIN truly take over "physical infrastructure" from centralized giants and transform it into a Web3 public network that everyone can participate in, use, and earn from.
Welcome to join the community
Welcome to join the community WeChat: BQ221858
Welcome to follow Weibo: @QuarkMing202
Welcome to follow Twitter: @xian202766693