Pantera Partner: Which DeFi Projects Have Real Revenue?

Original Title: DePin Case Studies

Original Author: Paul Veradittakit, Partner at Pantera Capital

Original Translator: Luffy, Foresight News

The Decentralized Physical Infrastructure Network (DePIN) is the convergence of blockchain and infrastructure networks. Currently, DePIN exists in industries such as energy, telecommunications, storage, artificial intelligence, and data collection.

In the previous crypto cycle, many projects took advantage of the DePIN trend targeting market opportunities with significant potential. However, when the core product failed to gain enough traction on both the supply and demand sides, they turned to cryptocurrency tokenomics.

Nevertheless, among those surviving projects, many companies spent time building infrastructure. They achieved sustainable profitability by addressing existing issues, even without relying on the flywheel effect of tokenomics. Let's take a look at some of these cases.

Geodnet

Core Problem Solving

Traditional Global Positioning System (GPS) typically lacks the precision required for advanced applications, which demand centimeter-level accuracy rather than meter-level accuracy. Geodnet Network's solution has improved positioning accuracy by 100 times compared to traditional GPS technology.

Target Customers

Geodnet Network serves industries relying on high-precision geospatial data, including:

· Autonomous Vehicles

· Agriculture

· Smart Cities

· Defense and Security

· Space Exploration

Revenue Model

· Data Licensing: Selling geospatial data to commercial customers.

· Node Participation Fees: Fees related to miner installation and usage.

· Partnerships: Collaborating with industries such as agriculture and autonomous driving systems to integrate Geodnet Network services into existing workflows.

By 2024, Geodnet Network reported revenue growth of over 500% year-on-year, reaching $1.7 million.

Tokenomics

The Geodnet network utilizes the native token GEOD to incentivize participants:

· Miners earn tokens based on data contribution and network uptime.

· Burn Mechanism: Tokens are burned during data transactions, introducing a deflationary mechanism.

· Daily Earnings: The average daily earnings per miner are around $4.30, with an estimated payback period of 3 - 4 months.

· Circulation: Token distribution ensures liquidity while incentivizing early adopters.

· Token Utility: Used for payments, staking, and governance within the network.

Participation and Contribution Methods

1. Become a Miner:

· Purchase mining equipment (cost ranging from $500 - $700).

· Set up and connect the mining rig to the network, uploading 20 - 40GB of data monthly.

2. Use the Network:

· Access real-time kinematic (RTK) correction data through subscription or direct purchase.

3. Develop Applications:

· Build software for specific industries based on the Geodnet network data.

4. Governance:

· Participate in protocol governance by staking GEOD tokens and voting on proposals.

Helium

Core Problem Addressed

Traditional mobile network operators (e.g., T-Mobile) require significant capital expenditure to build towers, maintain infrastructure, and expand coverage. Helium addresses this issue by creating a decentralized wireless network that leverages community-owned hotspots to provide affordable, scalable, and resilient network connectivity for mobile and IoT devices.

Target Customers

· Consumers: Pay $20 per month to access unlimited data via Helium's decentralized network.

· Telecom Providers: Achieve WiFi offloading for major carriers, reducing their infrastructure costs.

· IoT Device Manufacturers: Provide connectivity for low-power IoT devices using the LoRaWAN protocol.

· Enterprise and Institution: Helping organizations deploy a dedicated wireless network for asset tracking, sensors, and environmental monitoring.

Revenue Model

The Helium network generates revenue through two main avenues:

1. Consumer-Facing Mobile Plans:

· Offering a $20 per month unlimited data plan where users can access both the Helium network hotspot and partner networks (such as T-Mobile) simultaneously.

2. Carrier Data Offloading Fee:

· Charging telecommunications providers $0.50 per GB to offload data through Helium network decentralized hotspots instead of traditional cell towers.

Financial Performance

· Subscribers: Over 100,000 direct subscribers and over 300,000 indirect WiFi offload users.

· Revenue: Generated seven-figure annualized revenue from mobile subscriptions and carrier offloading fees.

· Projection: With the expansion of carrier partnerships, estimated potential annual revenue from WiFi offloading alone could exceed $50 million.

Tokenomics

The HNT token of the Helium network is at the core of its incentive and payment structure:

· Earning Rewards: Hotspot operators earn HNT by providing coverage and transmitting data.

· Utility: The token is used for network transactions, paying for network services, and governance proposals.

· Burn Mechanism: HNT tokens are burned when used to pay for network services, reducing the supply.

Engagement and Contribution

1. Hotspot Deployment:

· Purchase and set up a Helium-compatible hotspot to provide network coverage and earn HNT rewards.

· Choose from 16 approved hardware types designed for IoT or mobile offloading.

2. Consumer Plans:

· Subscribe to the Helium network's $20 per month mobile plan to access affordable mobile data coverage.

3. Telco Partnership:

· Telecom providers can integrate with the Helium network to offload data traffic and reduce operating costs.

4. Governance and Staking:

· Staking HNT tokens to participate in network governance, propose suggestions, and vote on key upgrades.

Akash

Core Problem Addressed

The Akash Network aims to address the high costs, scalability limitations, and centralization issues of traditional cloud computing providers such as Amazon Web Services (AWS), Google Cloud, Microsoft Azure, etc. It does so by providing a decentralized cloud computing marketplace that allows users to leverage idle compute capacity to earn profits while reducing costs.

Target Customers

· AI Developers: Need high-performance GPUs for training and deploying machine learning models.

· Startups and Enterprises: Need cost-effective and scalable cloud computing to support data processing, storage, and AI-driven applications.

Revenue Model

The Akash Network generates revenue through:

· Marketplace Transaction Fees: Charging transaction fees for compute leasing and payments processed over the network.

· Compute Resource Leasing: Revenue share from GPU and CPU leasing for AI training and workloads.

· Developer Tools: Charging API integration and SDK licensing fees to developers using its compute infrastructure.

· Enterprise Partnerships: Collaborating with AI labs and decentralized platforms to expand compute capacity.

Financial Performance

· Annual Revenue: The Akash Network reported $2.5 million in revenue in 2024 from compute leasing and fees.

· Growth Rate: With the rise of AI, demand for GPU compute resources increased by 33x.

· Network Scale: Supporting over 400 GPUs.

Tokenomics

The Akash Network uses the AKT token for payments, governance, and incentives.

1. Purpose:

· Payment: Buyers use AKT tokens to purchase computing resources.

· Staking: Providers stake tokens to secure work opportunities and enhance reputation.

2. Incentives:

· Providers earn AKT tokens for supplying computing resources.

· Tokens are allocated based on uptime, performance, and task completion.

3. Governance:

· Token holders can propose upgrades and vote on protocol changes.

4. Burn Mechanism:

· Network fees are burned to reduce token supply.

Participation and Contribution Methods

1. As a Provider:

· Set up GPU, CPU, or storage servers on the Akash network.

· List resources, set prices, and start earning AKT tokens.

2. As a Consumer:

· Rent computing resources using the Akash network's web interface or command-line interface (CLI).

· Deploy AI training workloads, web services, and decentralized applications.

3. As a Developer:

· Access APIs and SDKs to integrate Akash network services into applications.

· Utilize GPU clusters for deep learning training or inference tasks.

4. Participation in Governance:

· Stake AKT tokens to vote on network upgrades and resource pricing policies.

Future Outlook

The above are just a few of the effective projects with sustainable revenue streams. In the coming months, DePIN's adoption will undoubtedly increase, giving rise to more sustainable, scalable, and profitable companies.

While the mentioned companies are consumer-facing, another area that excites me is infrastructure. Foundational blockchain, oracle services, smart contract services, middleware, token issuance services, and more—the sectors where these companies operate will benefit from the development of the DePIN project. Some examples include Solana, Peaq, Base, Story, Arweave, Opacity Network, and DeForm.

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