Borderless leads a $1.5M investment into GEODNET to bring high accuracy positioning to the masses
In this post, we lay down four key rationale behind our GEODNET investment:
- High-Growth, Large Market
- Fit with DePIN Model
- Solid Tokenomics
- Experienced Team
High-Growth, Large Market
In today’s increasingly connected and technologically advanced world, the demand for high-precision location data is growing exponentially. Global industries, such as Automotive, Agriculture, and Construction are all reliant on reliable precise positioning services to deliver automated and robotic features.
Standard Global Navigation Satellite Systems (GNSS) like GPS face challenges due to space weather interference, leading to inaccuracies of up to two meters. Addressing this crucial issue, RTK (Real-Time Kinematic) technology was invented in the early 1990’s. RTK is a proven method of positioning in real-time at the cm-level utilizing reference GNSS stations. To provide RTK into mass-market consumer applications, a large network of internet connected GNSS stations is required to efficiently provide centimeter accuracy data wherever and whenever required. The GEODNET network provides this so-called GNSS augmentation service today by utilizing its growing network of >3300 reference stations deployed with the DePIN model.
The market for location services is projected to reach $495 billion by 2031, with GPS augmentation services accounting for $25B and expected to grow to $50B by 2031.
The vast growth potential of GEODNET include these key segments:
- Wholesale GNSS data streams
- Professional users
- IoT and automotive industries
- Consumer applications
From construction to unmanned farming, accurate positional data is crucial for success, making GEODNET an indispensable partner. To this end, GEODNET has demonstrated traction with key customer partnerships already in place today.
Fit with DePIN Model
For RTK technology to work, first a GPS base station is set up in a fixed place, then a second GPS receiver can use the first fixed GPS base station’s data to cancel the space weather errors. This enables the second GPS receiver to instantly achieve centimeter accuracy up to 20km away even when moving.
You have probably seen these UFO looking gadgets at many construction sites:
This is an RTK base-station that generally costs around $3,000, and it should be set up in advance. In order to avoid having to deploy one of these every time a device needs high precision location, the idea of RTK networks (also called reference station networks) was born. By passing the base station over the Internet, one base station can serve an unlimited number of devices inside a 20 km wide area.
The problem is that a large network of base stations is an infrastructure that is costly to deploy and maintain globally. Currently, there are some isolated RTK networks, both public and private. Public ones are often old and low quality, and private ones are very expensive (e,g., >$3000/yr for Trimble’s VRSNow)
GEODNET has emerged as a groundbreaking solution, a decentralized RTK network, based on the DePIN principles.
GEODNET leverages the Decentralized Physical Infrastructure Network (DePIN) model and blockchain technology to establish a global network of GNSS correction stations.
Unlike traditional correction services companies, GEODNET empowers individuals worldwide to host stations on their own properties and incentivizes them with GEOD tokens. This unique DePIN model provides an unfair competitive advantage versus the incumbents: Lower-cost deployments, the possibility to create a network in a borderless manner around the globe, crowdsourcing the CAPEX and being able to send payments daily across the world to their hosts, quickly positioning GEODNET as a new global leader in the RTK industry.
Traditional correction services companies face significant costs in deploying and maintaining stations. GEODNET’s DePIN model revolutionizes this process by incentivizing individuals to host stations worldwide. With a focus solely on building the GNSS correction data network, GEODNET aims to surpass competitors’ coverage and market share.
GEODNET’s singular focus on building a vast network of GNSS correction stations sets them apart from the competition. While legacy networks have limited coverage:
GEODNET: ~3,300 stations Worldwide
Trimble VRSNow: ~5,000 stations US, EU, Australia
Leica- Hexagon SmartNet: ~5,000 stations US, EU, Australia
GEODNET has already deployed over 3,300 stations and aims to become the largest network with more than 50,000 stations by 2024. This dedication and scalability makes GEODNET a formidable player, well-positioned to capture a significant market share and quickly become the world leader in location infrastructure, since location accuracy increases as the distance between stations becomes shorter.
Solid Tokenomics
GEODNET has devised a sustainable DePIN business model, where the token issuance incentivizes the infrastructure deployment but the protocol revenue and tokenomics contribute to generating demand for the GEOD token.
The company has already burned 1.69M GEOD tokens, equivalent to $44,513, and anticipates an increasing monthly burn in near term. This is the second highest burn value of any DePIN network, behind only Helium. GEODNET’s burn address is on the Top10 of GEOD token holders with 0.17% of the total supply already burned, Geodnet has burned over 1.6 million tokens, equivalent to 5% of the total tokens minted.
GEOD token is on the Polygon blockchain with a total supply of 1 billion. These tokens are subject to a lock schedule. Mining tokens are unlocked and distributed daily to miners. The unlocking and distribution process will take place over a period of 10+ years.
The token allocation is very standard and looks as follows:
The distribution of mining tokens is based on various factors, including signal quality, the number of signals, uptime, and location. This follows a Proof of Accuracy Protocol. In July 2023, all properly installed stations receive 2 GEOD tokens per hour as rewards.
To avoid adversary miner competition and establish a landrush mindset, a Location NFT is awarded to the first high-performance Satellite Miner installed in a GEODNET Hex. A Hex refers to the division of availability into different locations. To qualify for the Location NFT, the satellite miner must receive 98% or more of the eligible rewards for a 30-day period, known as the Rolling Rewards Rate (RRR). Achieving a 98% RRR requires optimal installation of the Satellite Miner and a near-perfect online rate, which can be easily accomplished with a clear view of the sky and a stable connection.
Users in locations where data is in higher demand will receive higher incentivized rewards. This incentivization aims to encourage miners to deploy their stations in areas with greater data demand.
Hex Staking will soon be available, allowing customers to stake GEODNET tokens in specific hexes where they require data. This staking mechanism serves as an incentive for miners to deploy their stations in those specific areas, fulfilling the data needs of the customers. This approach is key to aligning the needs of the customers with the incentives of the miners.
On balance, the GEODNET team is thoughtfully utilizing DePIN technologies including — well aligned token allocation, mining incentives, NFTs, and Staking to ensure sustainable network growth well-aligned to its data customer needs.
Experienced Team
The company’s core founding team is located in Silicon Valley and Asia. It consists of experts in Navigation, GNSS Networks, and Blockchain technology. All three co-founders have a technical background and prior experience in building companies.
- Mike A. Horton, Project Creator: As a successful entrepreneur, Horton co-founded Crossbow Technology in 1995 and served as CEO until it was sold to Moog Inc. in 2011. Mike is the co-founder and CTO of ANELLO Photonics, the Creator of the Silicon Photonics Optical Gyroscope. Mike is considered a world recognized expert in Sensor and Navigation Technology. He earned a BS/MS in Electric Engineering from UC Berkeley.
- David Chen, Blockchain Expert: A proven technology leader with over 20 years of experience in Silicon valley. As a blockchain pioneer since 2013, He is full stack blockchain expert ranging from consensus protocols, network and security, to smart contracts and DAPPs. David was the co-founder of multiple blockchain projects such as Jingtum, MOAC.
- Yudan Yi, GNSS Technology Expert: As one of the top expert in his area, Yudan served as Senior Director with Aceinna. Prior to that, he was Research Scientist with Qianxun SI. He was Senior Research Scientist with Topcon Positioning Systems before that. Yudan He received Ph.D from Ohio State University and MS from Tongji University.
At Borderless, our mission is to support the next wave of creators who are driving the development of innovative technologies that will enable borderless value creation. The GEODNET Team embodies these principles, and we have great conviction in their disruptive approach.
