DePIN (Decentralized Physical Infrastructure Networks)

Decentralized Physical Infrastructure Networks are blockchain-based systems that use token incentives to coordinate distributed participants in building, operating, and maintaining real-world physical infrastructure such as wireless networks, data storage systems, energy grids, sensor networks, and mobility services.

DePIN projects issue tokens to reward participants who contribute infrastructure resources, creating economic incentives for individuals and organizations to deploy hardware, provide bandwidth, storage capacity, or computing power without requiring centralized coordination or capital investment by a single entity. Examples include Helium Network for decentralized wireless coverage, Filecoin for distributed data storage, and Hivemapper for crowdsourced mapping data.

The DePIN model aims to bootstrap infrastructure deployment more efficiently than traditional centralized approaches by distributing capital costs across many participants, reducing barriers to entry, and aligning incentives through token ownership. However, DePIN projects face challenges including token price volatility affecting participant economics, regulatory uncertainty around token classifications, coordination difficulties in maintaining service quality standards, and questions about long-term sustainability when token rewards decrease over time.