DePIN's Imperfect Present & Promising Future: A Deep Dive

Knower & Smac of Compound argue that DePIN, which uses blockchains to build and run physical infrastructure without centralized operators, could disrupt costly, inefficient traditional models, but that its success depends on proving demand, since token incentives map more easily to suppliers. They cite a 1kx report on DePIN cost structures and conclude that tokenomics cannot be generalized across projects. They also cite EV3's figure that telcos hold $265B in productive assets generating $315B in annual service revenue, and Citrini Research's account of excess fiber optic supply at incumbents, which the authors see as an opening for DePIN.