Developing DePIN Projects: A Web3 VC’s View

FutureMoney Group
3 min readJul 21, 2023

As global decentralization advances, Web3 venture capitalists (VCs) like FutureMoney Group are probing into Decentralized Physical Infrastructure Network (DePIN) projects’ potential. These projects have specific attributes that make them appealing investments from a Web3 VC perspective. Here’s a breakdown of the main factors for successful DePIN project development.

Supply-side considerations:

1. Geographic Decentralization: DePIN projects should span geographically diverse assets or resources — for example, gathering data on the condition of all Toyota cars in California or monitoring the air quality across the 15 districts of Beijing. The aim is to collect data from multiple nodes across wide physical coverage.

2. Security and Censorship Resistance: By utilizing decentralized databases and storage systems, DePIN projects offer blockchain networks essential security. This strategy avoids single failure points and enhances privacy, exemplified by strategically dispersed Bitcoin miners who continually pursue locations with the best electricity rates.

3. Access to Scarce Resources: Access to certain scarce resources is required for successful DePIN projects, like households with state-of-the-art solar panels or real estate properties with rooftops perfect for 5G connections. These resources’ decentralized use optimizes the robust network’s construction.

4. Dynamic Nature: Reflecting the dynamic approach of the Bitcoin network (where miners relocate based on electricity availability), DePIN projects need adaptability, enabling the formation of a smart, swarm-like system more environment-responsive than centralized entities.

Demand-side considerations:

1. Physical Resource Business Model: DePIN projects using physical resources must establish a solid business model and unit economy for sustainable growth. DeWi projects are good example, they are not necessarily global. Effective localized customer group service can foster strong community engagement and adoption, even without a digital layer for massive scaling.

2. Digital Resource Business Model: DePIN projects focused on digital resources should aim at enhancing value for the metaverse economy at global scale. Establishing a solid business model, exploring the crypto network effect, and layering multiple digital levels atop DePIN can spur growth opportunities and significant metaverse impact. Everything related to computing power fall into this category.

Innovative ideas for exploration at FutureMoney Group:

We are brainstorming some interesting hacks under the hood.

1. Hardware Wallet hacks: Secure hardware wallets are essential for cryptocurrency protection. FutureMoney Group is interested in innovative security solutions that strengthen these wallets against potential threats.

2. Ethereum Validator Hacks: FutureMoney Group is keen to explore how secure staking hardware’s security and efficiency can be improved as blockchain networks evolve.

3. iPhone Hacks: With iPhones serving as a digital world gateway for many, FutureMoney Group is interested in advances in secure data storage and app development on mobile devices.

Do you have revolutionary hacking ideas that could transform the DePIN sector? FutureMoney Group, a Web3 VC, is eager to support ventures bridging physical infrastructures and computing units, pushing security and innovation boundaries. Join us in laying a decentralized, prosperous future foundation. Contact us.