DePIN: A New Emerging Vertical in the Crypto Assets Industry

DePIN, as an emerging vertical in the Crypto Assets industry, is becoming one of the most important narratives in this bull market. This field encourages users to provide resources, maintain the network, and participate in governance through a token incentive mechanism, thereby gaining economic benefits. This model reshapes the way wealth is distributed, bringing a new wealth effect to ordinary people. Industry predictions indicate that the DePIN market size could reach $3 trillion in the next 5 years.

Although the DePIN concept emerged in 2023, IoTeX had already begun exploring the integration of the Internet of Things and blockchain as early as 2017, aiming to help users control smart devices and the data and value they generate. This idea aligns perfectly with today's DePIN, making IoTeX a pioneer in this field.

In July 2023, IoTeX released the 2.0 white paper, proposing the vision of "DePIN For Everyone." IoTeX 2.0 adopts a modular platform design and updates the energy structure to meet the rapidly growing demands of DePIN projects and users. This not only showcases IoTeX's years of deep cultivation in the DePIN field but also establishes its future direction for further improving the DePIN infrastructure and developing the ecosystem.

In April 2024, IoTeX completed a $50 million financing round, with investors including SNZ Capital, Foresight Ventures, and FutureMoney. This funding will be used for long-term staking of $IOTX( DePIN tokens ), and will support the IoTeX Foundation, DePINsurf accelerator, as well as DePIN projects built on the IoTeX chain.

IoTeX 2.0: Building a DePIN Dedicated Modular Public Chain

IoTeX 2.0 has upgraded from a Layer 1 public chain to a modular DePIN open platform, becoming the only ecosystem that supports DePIN in an open, modular, and large-scale adoption manner. Its core is the infrastructure module (DIM), which covers identity recognition, off-chain computing, L2 SDK, and public goods among other DePIN technology stacks. These modules significantly lower the construction threshold for DePIN projects, enabling creative teams to turn their ideas into reality faster, easier, and at a lower cost.

IoTeX 2.0 also provides a range of public facilities:

1. W3bstream: The world's first decentralized off-chain computing infrastructure designed for smart devices and real-world data using zero-knowledge technology.

2. DePINscan: A comprehensive DePIN data dashboard that has integrated over 200 projects, with a total market value exceeding 26 billion USD, connecting more than 1.2 million Web3 devices.

3. IoPay: Multi-chain AA wallet, providing a convenient gateway for Web2 users to enter Web3.

4. IoTube: Cross-chain bridge that enables token transfers between IoTeX and major L1/L2.

In addition, the upcoming DeviceConnect and IoID will further improve IoTeX's DePIN infrastructure.

IoTeX 2.0 Economic System Upgrade

IoTeX 2.0 introduces a new economic system, expands the utility of IOXT, and balances the inflation and deflation mechanisms. Among them, the modular security pool (MSP) is a unified trusted layer that allows IoTeX L1 to lease proof-of-stake security to DIM for safety and trust.

Validators can obtain incentives by re-staking their proof of stake ( PoS ) security to DIMs and DePIN projects, providing security for the projects. MSP is similar to Eigenlayer's Restaking mechanism, allowing IOXT to gain more returns through Stake and Restaking, and introducing market-oriented mechanisms such as LSD, forming a positive flywheel.

In terms of ecological incentives, IoTeX 2.0 has introduced several measures:

1. DePIN Surf Accelerator Program: In collaboration with FutureMoney and Foresight X, providing funding and resource support for DePIN and AI startups.

2. DePIN Liquidity Center Plan: Inject vitality into young DePIN projects by providing liquidity support and marketing resources.

3. Marshall DAO: A decentralized autonomous organization that adopts an on-chain voting custody management model, allowing the community to participate in the decision-making of the distribution and use of IOTX.

IoTeX Ecosystem Development

The open modular technology, mature infrastructure, and multiple ecological support programs of IoTeX 2.0 provide an ideal development environment for DePIN projects. Currently, more than 200 projects have integrated into its ecosystem, including:

1. Network3: AI Layer2 project, the number of global nodes has exceeded 200,000.

2. Wayru: A shared WIFI infrastructure in collaboration with the United Nations, with mobile downloads exceeding 100,000.

3. Inferix: A decentralized GPU network for visual computing and AI inference.

4. PowerPod: Shared charging pile energy network, building a decentralized energy internet.

5. WatchX: An AI wearable device ecosystem equipped with multi-chain dApps.

In addition, a comprehensive DeFi ecosystem has been established on IoTeX, including DEX ( PinSwap, Loxodrome ), derivatives trading platform ( Quenta ), decentralized stablecoin ( Magma ), and Restaking platform ( Bedrock ).

The launch of IoTeX 2.0 marks an important milestone in the development of DePIN. Through innovative technology and economic mechanisms, IoTeX lays a solid foundation for the trillion-dollar DePIN sector. It is expected that within the next 3-5 years, IoTeX will connect 100 million devices, releasing trillions of dollars of real-world value on the blockchain, providing significant growth opportunities for industry participants.