The Repetitive Script of the Web3 World: The Incentive Trap from GameFi to DePIN

In recent years, the Web3 field has been continuously playing out the old routine of "economic incentives + scene packaging." From the Filecoin mining machine boom a few years ago, to the previous round of GameFi frenzy, and now to the currently popular DePIN (Decentralized Physical Infrastructure Network) concept, it seems that each round is repeating a similar pattern.

GameFi had attracted numerous investors with the slogan "play games to earn tokens," but ultimately failed to achieve sustainable development. Token prices fluctuated wildly, users quickly lost interest, and the ecosystem struggled to survive. Now, DePIN has reignited market enthusiasm with a broader range of application scenarios. From charging, calling, to installing sockets, driving cars, and even the daily act of drinking water, all have been packaged as opportunities to earn token rewards.

On the surface, DePIN seems closer to real life than GameFi, involving infrastructure fields such as electricity, communication, and transportation. However, upon closer examination of the actual operations and economic models of these projects, it is not difficult to identify the problems: most equipment suppliers come from Huaqiangbei in Shenzhen, and the hardware prices are usually 30-50 times the wholesale price, making it difficult for investors to recoup their costs. At the same time, the prices of project tokens are generally sluggish, and investors can only watch their assets shrink, hoping for the distant "ecological landing" and "next round of airdrops."

Typical Project Case Analysis

Helium: From Scarcity to No Issues

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 mobile communication services, attracting a large number of users in a short period. However, the price of its devices skyrocketed from several dozen dollars to $2500, and the promise of "recouping investment in three days" ultimately turned out to be a mirage. Due to regulatory issues, nodes in China were shut down, leading to heavy losses for investors, and the coin price plummeted, completely shattering the once-promising dream of "mining for wealth."

Hivemapper: High-priced dash cams are hard to recoup costs.

Hivemapper has launched a $549 dashcam, promising users token rewards for uploading geographic data. However, the contradiction between the high hardware price and the sluggish token value, as well as the limitations in the quality and coverage of the map data, make it difficult for the project to achieve its expected goals. Although hardware sales have generated substantial revenue, this reflects more of a "selling devices" business model rather than a healthy DePIN economic system.

Jambo: The Web3 Mobile Myth in the African Market

Jambo launched a $99 Web3 phone in the African market, equipped with wallet functionality, selling over 400,000 units. However, this success relies more on the short-term surge of certain tokens rather than the actual value of the project itself. Although the pre-installed dApp on the phone allows users to earn JAMBO tokens, the actual value and liquidity of the tokens remain questionable, lacking a genuine data monetization closed loop and a long-term user retention mechanism.

Ordz Game: A Web3 version of the nostalgic handheld console

The BitBoy handheld console launched by Ordz Game, marketed with the slogan "play-to-earn", quickly sold out in its pre-sale version. However, the gaming experience is only at the retro ROM level, lacking innovation. Its token ORDG (later changed to GAMES) suffers from insufficient liquidity and questionable value. Essentially, this is a rebranded product of the GameFi mining model, making it difficult to achieve long-term player retention and earnings.

TON Phone: High price, low specifications "senior phone"

Leveraging the popularity of Telegram and TON, the TON phone was launched at a price of nearly $500, but user feedback generally indicates that its performance configuration does not match that of mainstream brands in the same price range. Although a phone case is included and there are hints of "airdrop expectations," in reality:

• The quality of the airdrop is not as good as other similar projects.
• The user experience lacks differentiation.
• The investment return cycle is long, and ecological construction is still in the conceptual stage.

Starpower: The expensive smart socket is backed by an incomprehensible business model.

Starpower, as a smart power DePIN project under the Solana ecosystem, sells hardware such as smart sockets. A plug priced at 100 dollars only costs 91 yuan on other platforms. The technology and economic model behind the project are opaque, primarily relying on "storytelling" to sell devices. Its development path is reminiscent of past mining machine scams.

Energy DePIN projects: The huge gap between ideals and reality

Energy DePIN projects such as Glow and PowerLedger are attempting to achieve carbon credit trading and P2P energy trading through blockchain technology. However, these projects face numerous practical challenges:

• The actual buyers of carbon credits are not clear.
• Power generation validation mechanism is missing
• The return on investment in equipment relies on unstable token prices
• Lack of successful business landing cases

Despite the appealing visions of these projects, the gap between regulation and commercialization remains vast.

Conclusion

The concept of DePIN should be an innovative application of the Web3 economic incentive model in the real world, theoretically enabling the decentralization of infrastructure, building large-scale user networks, and achieving fair incentives and transparent governance through token design. However, most DePIN projects currently on the market are essentially a disguised harvesting model of "selling hardware."

Successful DePIN projects require a strong supply-demand model design, a continuously transparent incentive mechanism, and a deep understanding of the hardware and infrastructure sectors. The current market bubble mainly lies in the fact that most projects do not genuinely solve real problems but instead attract investors through the packaging of concepts. When hardware becomes a tool for speculation and tokens turn into worthless "digital vouchers," all narratives revolve around airdrop expectations, and DePIN becomes just another Ponzi scheme in the Web3 space.

Looking forward to seeing some DePIN projects in the near future that do not rely on hardware sales or hollow narratives, but are based on real use cases and stable revenue models, bringing true value and innovation to this field.