The decentralized physical infrastructure network (DePIN) movement is undergoing a quiet revolution. While early DePIN projects laid the groundwork, a new wave—DePIN 2.0—is emerging with smarter strategies, refined execution, and a laser focus on real-world utility. The “second-mover advantage” is now in full effect, as innovators apply hard-earned lessons from past failures and partial successes to build more sustainable, scalable, and demand-driven networks.
For those immersed in crypto and Web3, DePINs are no longer a fringe concept. By mid-2024, the ecosystem has grown to over 1,300 active projects, spanning industries from connectivity and AI data sourcing to mobility, energy, and manufacturing. What was once a niche experiment has evolved into one of crypto’s most promising bridges to tangible, off-chain value creation.
This new generation isn’t just iterating—it’s rethinking the entire model. From how supply is incentivized to when decentralization happens, DePIN 2.0 projects are doing things differently. Let’s explore the key shifts defining this evolution.
Demand-Led Growth: Building Backward from Real Use Cases
One of the most common critiques of first-generation DePINs—like Helium’s early IoT network—was their supply-heavy approach. Enthusiastic contributors deployed thousands of hotspots, but there were few actual users or applications consuming the network’s services. The result? Underutilized infrastructure and token economies struggling to find equilibrium.
DePIN 2.0 flips this script. Today’s leading projects prioritize demand acquisition before scaling supply. Many are securing commercial contracts and enterprise partnerships even before their token generation event (TGE), ensuring that when supply ramps up, there’s real demand waiting to absorb it.
👉 Discover how next-gen blockchain platforms are enabling real-world infrastructure networks.
Take Spexi, a decentralized drone imagery network. Before launching its token, Spexi secured seven-figure contracts with urban planning and environmental monitoring clients. Drone operators are paid in cash for capturing aerial data, creating immediate value independent of token speculation. This demand-first model ensures network activity is economically grounded—not just speculative.
By aligning supply growth with verified demand, DePIN 2.0 projects reduce waste, improve capital efficiency, and create more resilient tokenomics.
Lowering the Barrier to Entry: Leveraging Existing Behaviors
Another breakthrough in DePIN 2.0 is the shift away from custom hardware toward repurposing existing devices. Instead of asking users to buy specialized equipment—like CBRS radios or proprietary sensors—new projects tap into tools people already own: smartphones, laptops, cars, and home routers.
This strategy dramatically accelerates adoption. Why? Because it turns everyday activities into passive earning opportunities.
Consider Natix, a street-level mapping DePIN. Rather than incentivizing users to install dashcams, Natix uses smartphone cameras in vehicles already on the road. Drivers earn tokens simply by driving—no new behavior required. The project leverages a high-frequency, low-effort action (commuting) and transforms it into valuable geospatial data for cities, autonomous vehicle developers, and logistics companies.
Compare this to earlier models that required users to climb rooftops or configure complex hardware—an uphill battle for mass adoption. DePIN 2.0 understands that the easiest behavior to scale is one people are already doing.
Embracing Speculation: Points, Referrals, and Viral Growth
Let’s be honest: speculation drives participation in crypto. Rather than resisting this reality, DePIN 2.0 projects are harnessing it strategically.
The innovation? Points systems. These act as pre-token rewards that track user contributions before a formal token launch. Points can be earned through activity (e.g., sharing bandwidth, capturing data) and often include referral bonuses—sometimes even perpetual commissions on referred users’ earnings.
Grass, a decentralized proxy network, exemplifies this model. By installing a browser extension, users share their residential IP addresses with AI companies needing web data. In return, they earn points redeemable for future tokens. Grass’s referral program fuels viral growth: invite someone, and you earn a percentage of their points forever.
This approach does three things:
- Delays tokenomics finalization until real usage data is gathered.
- Creates early community loyalty and engagement.
- Turns users into growth agents through incentivized referrals.
👉 See how decentralized networks are turning everyday internet use into earning opportunities.
It’s not about avoiding speculation—it’s about channeling it into sustainable network effects.
Staying Centralized Longer: Speed Over Purity
There’s a myth in crypto that decentralization must happen immediately. DePIN 2.0 challenges that notion.
The truth? Early-stage projects need strong centralized leadership to achieve product-market fit (PMF). Rapid iteration, decisive decision-making, and unified vision are nearly impossible in fully decentralized governance structures—at least at the beginning.
Take 3DOS, a decentralized manufacturing network built on top of a popular 3D printer operating system. Founder John Dogru maintains full control over development, partnerships, and network operations—not out of ideology, but pragmatism. His centralized team has already secured clients like NASA and Google in the Web2 world. Now, he’s transitioning that success into a tokenized network where businesses can outsource print jobs to local 3D printer owners.
This hybrid approach allows 3DOS to scale demand and refine its model before gradually decentralizing—ensuring that when governance is handed over, there’s actually something valuable to govern.
As the author notes: “It’s only worth decentralizing something that is working.”
Core Innovations Defining DePIN 2.0
To summarize, the next generation of DePINs is characterized by:
- Demand-first design: Securing real-world use cases before expanding supply.
- Frictionless participation: Using existing devices and behaviors to lower entry barriers.
- Speculation-as-a-tool: Leveraging points and referrals for viral growth.
- Centralized agility: Delaying decentralization until PMF is achieved.
These aren’t just incremental improvements—they represent a fundamental shift in how decentralized networks are built and scaled.
Frequently Asked Questions (FAQ)
Q: What is DePIN 2.0?
A: DePIN 2.0 refers to the next evolution of decentralized physical infrastructure networks that prioritize demand, lower entry barriers, use points systems, and delay decentralization for faster iteration.
Q: How is DePIN 2.0 different from earlier models?
A: Unlike first-gen DePINs that focused on rapid supply expansion with little demand, DePIN 2.0 projects validate use cases early, use existing hardware, and grow virally through referral incentives.
Q: Why do DePIN 2.0 projects stay centralized longer?
A: Centralized control enables faster decision-making and product refinement. Decentralization is deferred until the network proves viable and achieves product-market fit.
Q: Are points systems replacing tokens?
A: No—points act as pre-token incentives that track contributions before TGE. They help projects gather data and build communities without premature token launches.
Q: Can anyone participate in a DePIN 2.0 project?
A: Yes—most are designed for mass participation using everyday devices like smartphones or home internet connections.
Q: What industries are being transformed by DePIN 2.0?
A: Key sectors include wireless connectivity, AI data sourcing, mobility (vehicle telematics), drone imaging, manufacturing, and edge computing.
👉 Explore how blockchain is powering the future of decentralized infrastructure.
The Road Ahead
DePIN remains one of crypto’s most impactful innovations—not because it reinvents blockchain, but because it connects it to the physical world in meaningful ways. From turning idle cars into data collectors to transforming home Wi-Fi into revenue streams, DePIN 2.0 proves that decentralized networks can deliver real utility.
As adoption accelerates and more projects transition from concept to cashflow-generating networks, we’ll likely see consolidation, specialization, and deeper integration with AI and IoT ecosystems.
The journey from DePIN 1.0 to 2.0 has been one of refinement and realism. And if history is any guide, DePIN 3.0 will be built on the successes—and failures—of today’s pioneers.
For now, the message is clear: The future of decentralized infrastructure isn’t just coming—it’s already being built, one smartphone, drone flight, and 3D print job at a time.
Core Keywords: DePIN 2.0, decentralized physical infrastructure networks, demand-led growth, points systems, token incentives, supply-side scalability, real-world utility