Description

These tokens power Decentralised Physical Infrastructure Networks (DePIN). They facilitate marketplaces for resources like file storage, GPU computing power, or wireless coverage. The token acts as the medium of exchange between providers of the hardware and users of the service.

Risks

Supply and demand imbalance. The token economics of these projects rely on a balance between hardware providers (supply) and actual users (demand). Often, the supply of resources grows faster than the demand from paying customers. This can lead to an oversupply of the token as providers sell their earnings, suppressing the price permanently.

Technical barriers and competition. These networks compete directly with centralised giants like Amazon Web Services (AWS) or Google Cloud. Decentralised alternatives are often slower, more complex to use, and technically demanding.