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Unhealthy installation on local symbols, along with devices installed in low -demand areas, means that many DePin projects lack sustainability. Decentralized material infrastructure networks– known as Depins for Short – ambitious projects that represent a huge task. It includes much more than the launch of the mechanical flash in a few clicks.
The goal of connecting assets in the real world, such as energy networks and transport networks, to Blockchains is the one that takes time, resources and size. For this reason, it is no wonder that block research Suggest Funding has now achieved the highest new level ever at $ 1.91 billion.
The artificial intelligence of the DePin DePin sector gave another batch – but not all projects are born equally, and those that survive in this competitive scene need to overcome major structural issues to reach their full potential.
Transfixed on symbols
One of the specific issues is related to the wrong idea that startups need to launch an original symbol to be successful. This can be a fatal mistake, because it means that the value of the network is linked to the wider market and the total economic events that are completely out of control.
Helium (HntIt is a good example of this in practice. This Blockchain’s primary system has been created with the vision of wireless internet cultivation that works with people, which means that those who occupy hot points will be rewarded with HNT symbols.
But in reality, the success of the project was how to launch this digital asset at an appropriate time – in the middle of the huge bull race that generates Fomo among investors. A significant increase in the value of the distinctive symbol was not a reflection of the flexibility of this network or the number of customers they have. This was mainly stripped of HNT to memecoin with a little benefit.
In fact, when you look at the repeated annual revenues of the shellium, a realistic statistic appears. Even with billion dollars, it requires the Internet of Things close to 1,000 years to break it.
Among the other competitors in the PEAQ space, a network that says it is home to more than 50 DePins. Health audit is needed here, as it is difficult for most Blockchains to deal with transactions sizes for a single, decentralized material infrastructure network, not to mention 50.
This leads us to the largest lesson you need the brands that DePin needs to learn: you don’t need your own code as long as the bonuses for users are liquid. We have already seen how these digital assets can land even projects in hot water, with mobile pollen pills Confrontation Judicial cases in the United States after accusing them of “compensation for metal coins from thin air” and whipping them for money.
DePin offers one of the poorest returns on the capital operating in any industry on the ground – and its decentralized nature means that the financial burden is transmitted to those who invest in a project instead of the founders. To really obtain this sector, the founders should focus on creating demand -based solutions and turning their efforts to attract more customers instead of making their networks larger.
Let’s explain what this means in practice. Instead of adopting the “creation and come” model, the approach that the demand is made means that hot points appear in the areas where customers who really want them.
India is a major example of the market as there is an indelible demand for internet, but 600 million people lack access. By cutting the ownership of the installation, the DePin investor can buy devices that are used after that as they are already needed – in some cases in the middle of the road around the world.
Restructuring the books
Of course, devices are an important component when creating DePins – but currently, incentives are determined. Many projects have sold equipment at inflated prices, while relying on converting more units to enhance their revenues. Others allocated a share of each purchase of the distinctive symbol in an attempt to make these digital assets more acceptable. Although this may lead to an amplification of its price in the short term, it means that these encrypted currencies violate Howy TestWho determines whether the original is safety. Worse, this means that investors are entering a project for all wrong reasons – financial consensus first instead of benefiting from others.
The method of “building it and will come” a environment in which DePin hardware is to collect dust and unused, but the affected investors continue to request the return. But generous payments can be unnecessary, creating high levels of indifference when rewards diminish. Insilement for distribution of compensation in the form of an original symbol also can also be exceptionally outside the status of companies, who prefer to pay using digital dollars instead.
Going to the request first means that the value of the original symbol is a secondary concern, and the focus can truly be due to the guarantee of DePin more good. The first step is to find consumers who will benefit from this infrastructure and then make sure that the devices funded by investors go to those who reach them. This helps to generate actual revenues and means the network grows organically. When it comes to bonuses, the distribution of revenues in the form of Stablecoins can make income flows more transparent and predictable than they are today.
In the old infrastructure world, careful planning and research is made before spending one dollar of capital. Feasibility studies are taught whether the ambitious project is achieved, and who will serve, and where its headquarters is. DePins should follow the same approach-and the final situation of users in the heart of their strategy.
Blockchain technology and the deployment of financing costs through a wider cross section of people can be truly transforming-which leads to arming emerging markets to finally reach the technology they need to develop their economies and become more prosperous. But the DePin projects that try to achieve this need to realize that throwing an original symbol in the deal for it risk creating an unnecessary distraction that can eventually prove harmful in the long run – and does not raise the end of the legal and organizational headache.
Sustainability is the name of the game here. A lot of offer and a little demand will always spell disasters. But the demand for the demand first and increasingly increasing along the way is a recipe for success – and it should serve as a road map to help the DePin sector with prosperity and change the world.
