The Repetitive Cycle of the Web3 World: The Bubble Path from GameFi to DePIN

In the Web3 space, we continuously witness similar patterns repeating themselves. From the Filecoin mining machine craze, to the rise and fall of GameFi, and now to the current DePIN concept, these projects all attempt to attract users through economic incentives and scenario packaging. However, they often fail to achieve a long-term sustainable business model.

DePIN( decentralized physical infrastructure network ), as the latest hot concept, seems to be more imaginative than previous projects. It extends the token reward mechanism to all aspects of daily life, including charging, communication, transportation, and more. This model, closely tied to the real world, feels like it has "real value" compared to virtual games.

However, upon closer inspection, it is not difficult to find that there are serious problems in the current DePIN market. Most equipment suppliers come from Huaqiangbei in Shenzhen, and the hardware prices are often dozens of times the wholesale price. Investors not only face huge losses in hardware investments but also have to endure the continuous decline in token value. This phenomenon resembles a replay of old hardware scams rather than true infrastructure innovation.

Project Case Analysis

Helium: From a scarcity of machines to no problems.

Helium was once a star project in the DePIN field, building a decentralized LoRaWAN network through Helium Hotspot devices. The project also collaborated with major telecom companies to launch low-cost packages, attracting a large number of users. However, the price of its devices soared from several dozen dollars to 2500 dollars, and the promise of "recouping investment in three days" ultimately became a mirage. Due to regulatory issues, nodes in China were shut down, resulting in significant losses for investors.

Hivemapper: The Dilemma of High-Priced Dashcams

Hivemapper has launched a $549 dashcam that allows users to upload geolocation data while driving to earn token rewards. However, the project faces multiple challenges: a sustained decline in token prices, limited quality and coverage of map data, making it difficult to compete with existing mapping services. Although hardware sales generate considerable revenue, this reflects more of a "selling devices" model rather than a healthy DePIN economic model.

Jambo: The Web3 Mobile Myth in the African Market

Jambo has launched a Web3 phone priced at $99 in the African market, claiming to have sold over 400,000 units and activated more than 1.23 million wallet addresses. However, this success is more attributed to the rise in APT token prices and the rapid development of the ecosystem, rather than the value of the project itself. Users can earn JAMBO tokens through pre-installed dApps, but the actual value and liquidity of the tokens remain in question.

Ordz Game: The Web3 version of the retro handheld console

Ordz Game has launched the BitBoy handheld console priced at 0.01 BTC, incorporating a "Play to Earn" model. However, its gaming experience is basically at the level of retro ROMs, lacking innovation. The token ORDG( was later renamed to GAMES), which lacks liquidity and actual value. Essentially, this is a replica of the GameFi mining model, making it difficult to achieve long-term player retention and real earnings.

TON phone: an expensive "senior phone" experience

Riding on the popularity of Telegram and TON, the TON phone was launched at a price close to $500. However, users generally report that its performance does not match its price, resembling more of an overpriced "senior phone". Despite the promotional expectations of airdrops, the actual UI/UX lacks innovation, and the ecosystem development remains in the conceptual stage.

Starpower: An incomprehensibly high-priced plug

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 too high, as similar products on other platforms only cost 91 yuan. The project company is newly established, the technology is opaque, and the ecological incentive model is unclear, making it seem more like selling equipment through "storytelling."

The Essence and Future of DePIN

DePIN is essentially an extension of the Web3 economic incentive model into the real world. Theoretically, it can achieve the decentralization of infrastructure, build large-scale user networks, and realize fair incentives and transparent governance through token design. However, most DePIN projects at the current stage rely on "selling hardware" to harvest retail investors. The real token models often combine "air and bubbles," attracting users through means such as KOL packaging and airdrop expectations.

Successful DePIN projects require strong supply and demand model design, a transparent and continuous incentive mechanism, and an in-depth understanding of hardware and infrastructure fields. The main issue in the current market is that most projects are not solving real problems, but rather packaging concepts to harvest users.

Looking forward to seeing real DePIN projects that survive based on actual usage and income in the future, rather than those bubbles that rely solely on selling hardware or storytelling.