DePIN projects are the simplest way you can earn passive income online today.
Have idle GPU storage? RENT IT OUT.
Want to share excess WiFi with a network? GO AHEAD.
Have additional energy from your solar farm? TRANSMIT IT TO AN ENERGY GRID.
You can do all this while earning substantial web3 passive income thanks to the power of DePIN Web3 technology.
But what does DePIN mean in crypto? DePIN is nothing but a decentralised physical infrastructure based on blockchain. It allows anyone to share their internet or hardware with a global network and earn income in return as token rewards.
This article discusses what is DePIN and how it works. It also discusses what are DePIN projects and how you can participate in one.
What Is DePIN — and What is its Main Shtick?
So, what is a DePIN?
Before we discuss that, let’s first understand why blockchain tech is becoming so relevant today.
The Dotcom bubble of the 1990s gave rise to the internet we know today. It is heavily centralised and controlled by a handful of powerful entities. Blockchain was an attempt to remove this centralisation and give back control to users.
Today, Web3 represents an online world where users, builders, and developers don’t have any fixed hierarchy. Each one can be a contributor as well as a consumer.
DePIN in blockchain and crypto is a similar attempt to decentralise the physical world by bringing it on-chain over a blockchain network to bridge the physical and digital world.
Physical infrastructures like IoT networks, energy grids, solar farms, telecom networks, cloud storage, etc., are all closed networks with a single producer and many users. There’s a clear demarcation between production and consumption.
DePIN Web3 technology breaks this wall and lets users contribute to other users directly using these physical infrastructures without the need for a central authority or intermediary. There are no longer any clearly defined roles. A user can be a producer, and the network can become a fully user-owned network.
Here’s a quick comparison table for DePIN vs centralised infrastructure
Source: Cointelegraph | Traditional Infrastructure vs. DePINs
For instance, you connect your WiFi router to a DePIN network like Helium or The Graph, and other users can use your internet for a fee. After a small deduction (or as per terms and conditions), this fee is paid to the Wifi provider as Depin rewards or crypto tokens.
That’s the democratisation and user empowerment DePIN brings to the traditional physical world. Filecoin is the earliest DePIN network known to the blockchain world. Filecoin is a DePIN network for decentralised cloud storage services that rewards storage providers in the FIL coin.
A network participant can rent their computer storage to the Filecoin network and earn DePIN rewards. It’s like renting out an extra room in your house — except it's part of your GPU storage.
To get started, here are a few generic steps you must fulfil:
Choose a network
Check availability in your region
Order the device
Set up your wallet/account
Start contributing and track earnings
Track interesting DePIN projects and blockchains on DePIN Hub.
How Does It Work?
A DePIN network consists of three parts: physical hardware, such as a WiFi router or GPU, a blockchain network, and token rewards.
Physical hardware node
DePIN can bring any physical infrastructure comprising essential utilities, such as hotspots, sensors, or computing devices, each acting as an individual node, to the network. This network is available for anyone in the community who wants to use or contribute to it.
This way, DePIN empowers both the demand and supply sides.
Blockchain Network
Blockchain records every transaction between these physical infrastructure nodes and automates reward sharing via smart contracts. The protocol code acts as rules and guidelines that the entire community must follow.
Source: Binance Square | DePIN Flywheel
Blockchain provides a transparent ledger that ensures everything gets carried out smoothly, in a code-compliant fashion. Among the networks, Solana is one of the largest hub for DePIN projects such as Ionet, Helium, GetGrass, and Render.
Crypto Rewards
When users contribute resources to the network, they win DePIN rewards. This economic model is engraved in the smart contract code, which governs all transactions happening on the network. The more efficient and resilient the network is, th bigger are the crypto rewards. The decentralisation of ownership, control, and management acts as an incentivisation model for the network contributors.
Off-chain, the actual transfer of physical resources happens, and the blockchain records the transactions and manages user rewards.
Ultimately, these peer-to-peer shared network resources and the combined network effect bring benefits such as low unit costs, higher token value, better liquidity, and higher utilisation of network infrastructure.
Today’s Real DePIN Projects
According to Messari's Q1 2025 report, the DePIN sector’s market cap will surpass $50 billion in 2024 and will reach $3.5 trillion by 2028. While there are around 250+ DePIN projects currently live, let’s restrict our discussion to the top 3 most rewarding protocols:
Render Network
Render Network connects idle GPU storage devices for blockchain infrastructure sharing. Users can contribute their idle GPU power, which is then used for rendering 3D animation or visual effects tasks. The blockchain infrastructure providers win RNDR tokens as rewards.
Source: Coingecko | Render Network Structure
Render shifted from Ethereum to Solana in 2024 due to the obvious cost, speed, and scalability benefits that Solana brings. You can join the network as a node operator or a creator. To become a node operator, you must fill out the Render Network Interest Form and wait to be added to the onboarding queue.
Source: BitDegree | The Hardware Requirements for a Node in the Render Network
The table shows the hardware requirements for node setup on Render. A Reddit user said he was hired at $0.38/hour for 8 hours and had to bear an electricity cost of $1.4 (25 cents per kWh). His profit was $1.64 for 8 hours.
Grass
Grass project DePIN is a network for decentralised internet sharing. You can contribute your unused internet and earn from bandwidth sharing. Verified institutions use Grass as a decentralised wireless network.
Source: Coingecko
Grass uses only 0.3% of the contributor’s internet bandwidth. If you are interested in setting up your DePIN hotspot with Grass, here are some requirements for your Web3 earning home toolkit:
You can set up your account on Grass by registering on the Grass Registration page. Download the Grass extension from https://www.getgrass.io/. Install the extension next, and log in to your Grass account to start earning Grass points. You also need to connect a Solana wallet to get started.
A Reddit user posted that they were earning 100 Grass points per hour with the Grass extension running in the background for three days continuously.
Note: Grass doesn’t allow users from countries like Belarus, Bosnia and Herzegovina, Burundi, Central African Republic, Cuba, North Korea, Democratic Republic of Congo, Guinea-Bissau, Iran, Iraq, Lebanon, Libya, Mali, Nicaragua, Myanmar, Russia, Somalia, South Sudan, Syria, Venezuela, Yemen, Zimbabwe, and parts of Ukraine (Crimea, Donetsk, and Luhansk) to participate in the network.
Helium Mobile
Helium was an internet of things (IoT) decentralised network earlier. It migrated to the Solana network and expanded to the mobile sector in 2023. Helium Mobile allows users to earn mobile tokens to share their network and use the tokens to pay bills.
Source: Medium
Helium offers mobile phone plans for as low as $20 and provides service using T-Mobile infrastructure and a Helium hotspot setup.
Helium also introduced new Helium mining plans for different investors. The plans ranged from $79 to $3765 annually, and the daily yields were based on HNT market prices.
What You Need to Get Started
Each DePIN protocol has a distinct set of requirements and eligibility criteria. For instance, Filecoin storage sharing guidelines require storage providers to have a stable internet connection, sufficient computational power, and storage space of 32 or 64 GiB. WiFi or internet sharing protocols may require a router of a particular make or capacity, while a node setup may involve a suitable operating system, internet connection, IDE or text editor for coding, etc.
A stable internet connection, wallet setup, and software downloads are other basic requirements involved in any DePIN project. Learning how to earn tokens in Web3 requires an additional learning curve, technical prowess, and cost. If you are eager to participate in the DePIN space for deeper network earnings actively, you should be ready to take the bet.
Should You Try DePIN?
Most of the DePIN projects are still in their infancy. DePIN can make physical infrastructure efficient, transparent, and accessible to everyone. It also helps reduce costs and remove the need for any upfront investment, ensuring zero red tapism and faster deployment.
While DePIN, as a tech, holds a lot of potential to let users earn passive income at home, there are considerable risks and trade-offs involved. An X user, Junior Derek, says, How many DePIN companies engage in illegally selling off sensitive user information to big companies while the users get a pittance in return.
Source: X
Despite the claims of $200-$500 daily earnings, actual DePIN users share on Reddit and other mediums how hard it is to generate income from these early-stage DePIN projects. The setup costs and resultant wear and tear to the hardware are additional burdens users must bear. Security and regulatory risks shadow protocols from utilising the full potential of the tech.
Despite the shortcomings, users are generating high ROI on running their DePIN devices in the long run. DePIN remains the hottest narrative, and traditional institutions are realising its worth. The time blockchain DePINned the physical world, too, isn’t far away. The wait’s worth it, and we’re ready for it.
Head over to NFT.EU for more such interesting articles on NFTs and Web3.
FAQs
Can I use my current router?
If you have a router that’s designed for or compatible with a DePIN project, you can use your existing router. You can match router compatibility with the project’s requirements and specifications.
How much can I really earn?
You can start earning $200–$400 monthly using your mobile phone or laptop to participate in a DePIN project.
Do I need to pay taxes?
Different countries have different tax provisions governing earnings from DePIN projects. The proceeds from participating directly in a DePIN project would usually be treated as taxable income, while gains on DePIN tokens would come under capital gains, which are again taxable.
What are the main challenges of DePIN projects?
Since dePIN technology is still in its infancy, challenges like technological complexities, regulatory uncertainty, and scalability and adoption hurdles remain.
How will the DePIN+AI impact the DeFi and Blockchain?
The DePIN+AI model provides real-world use cases for blockchain and artificial intelligence, which are decentralised technologies. DePIN makes engaging with DeFi simpler and more accessible, improving transparency and community participation in traditional infrastructure projects.
