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

In the Web3 space, economic incentives and scenario packaging tactics are constantly being repeated. From the craze for Filecoin mining machines a few years ago, to the popularity of GameFi in the last round, and now to the concept of DePIN (Decentralized Physical Infrastructure Network), it seems we are always chasing similar dreams.

GameFi once attracted a lot of attention with the slogan "earn tokens by playing games," but ultimately failed to achieve a long-term sustainable business model. Today, DePIN has reignited enthusiasm in the Web3 space with a broader range of application scenarios. From charging, communication to transportation, energy, and even various activities in daily life, the possibility of "mining" has been assigned.

However, when we take a closer look at these projects, the reality is disappointing. Most of the DePIN device suppliers come from Huaqiangbei in Shenzhen, and their prices are often dozens of times the wholesale price. Many hardware investors have lost all their money, and the DePIN tokens they purchased are also difficult to recoup. This phenomenon raises doubts about whether the so-called infrastructure innovation is just another version of a hardware scam.

Project Example: The Painful Lessons of Investors

Helium: From Hard to Get to No Problem

Helium was once a star in the DePIN field, with its hotspot devices building a decentralized LoRaWAN network. However, from the initial frenzy of hype to the current complete collapse, Helium's story has become a classic case of "retail investor slaughtering." The devices that once cost up to $2500 have now become useless, domestic nodes have been banned, and investors have suffered heavy losses.

Hivemapper: High-priced cameras are difficult to recoup costs.

Hivemapper's $549 dashboard camera promises users token rewards for uploading geographic data. However, the contradiction between the high hardware price and the sluggish token value, along with limitations in data quality and coverage, makes it difficult for the project to achieve its grand goals.

Jambo: The Web3 Mobile Myth in the African Market

The $99 Web3 phone launched by Jambo in the African market has impressive sales, but there are still questions about the sustainability of its underlying economic model and ecosystem. The liquidity of the token and its actual value are unclear, and it is difficult to form a closed loop for data monetization.

Ordz Game: Web3 packaging of nostalgic handheld consoles

The BitBoy handheld launched by Ordz Game, although initially selling well, essentially replicates the GameFi mining model. The gaming experience lacks innovation, the value of the tokens is questionable, making it difficult to achieve long-term retention of players and returns on investment.

TON Mobile: Controversy of High Price and Low Configuration

Despite being launched with the popularity of Telegram and TON, the TON phone's price of around $500 has caused dissatisfaction among users due to the gap with its ordinary configuration. The lack of innovative UI/UX and uncertain airdrop expectations make it difficult for it to establish a foothold in the highly competitive smartphone market.

Starpower: Questions Behind High-Priced Plugs

Starpower, as a smart power DePIN project under the Solana ecosystem, has raised doubts with its $100 smart socket price. The project's background is opaque, and the ecological incentive model is unclear, which inevitably reminds people of past mining machine futures scams.

The Essence and Challenges of DePIN

DePIN is essentially an attempt to extend the Web3 economic incentive model into the real world. Theoretically, it can decentralize real-world infrastructure, build large-scale user networks, and achieve 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 so-called "ecological empowerment" often depends on packaging, narrative, and airdrop expectations to attract new users. Most project parties come from the hardware supply chain, obtaining exorbitant profits through high pricing rather than truly building the network.

Successful DePIN projects require a robust supply and demand model design, a continuously transparent incentive mechanism, and an in-depth understanding of the hardware and infrastructure sectors. The current market bubble lies in the fact that most projects do not address real problems but instead package concepts to harvest users.

When hardware becomes a tool for speculation and tokens turn into worthless "digital coupons", all narratives revolve around airdrop expectations, and DePIN becomes another round of Ponzi scheme in Web3. We look forward to seeing DePIN projects that truly rely on actual usage and revenue for survival, rather than just bubbles sustained by selling hardware or telling stories.