Distributed research for distributed networks – OurNetwork is crypto's go-to platform for onchain analytics.

📝 Editor’s Note: Important 🚨

Starting last week OurNetwork is now using Ghost instead of Substack to deliver our newsletter to your inbox. Unfortunately, some readers have told us these emails are going to spam.

So in an effort to ensure our research makes it to your inbox without delay, we’re asking for your quick help today with a few simple action items.

Please complete the following to continue receiving our emails:

① Reply to this email - a simple hello is fine, but we’d of course love to hear feedback or other thoughts!

② Add us to your email contacts - this helps ensure our newsletters land promptly in your inbox each week. 

③ Mark emails “Not Spam” - please do for today’s issue as well as any other recent issues that were sent to your spam folder.

Thanks in advance for your quick help! We really appreciate your continued support, especially as we continue to transform OurNetwork into a truly first-class research and media platform.

Now let’s dive into the onchain data.

- Spencer 🕛

Sector Overview, Helium, Livepeer, DIMO, Hivemapper, IoTeX, Glow & WeatherXM.

• DePIN, decentralized physical infrastructure networks are disrupting legacy, centralized global infrastructure with permissionless, community-owned infrastructure networks. The top 6 DePINs by revenues - Flux, Braintrust, Helium, Glow, Render, and Storj - are currently generating >$10M of combined annualized onchain revenues and are valued at a median multiple of ~100x (based on circulating market cap, table from June 4).

There are >1M active reward-earning nodes contributing to DePIN projects. Most top networks enable both dedicated hardware miners & mobile phone-based mining (Helium, Hivemapper) and some are based entirely on smartphones (Natix, Nodle).

• Most DePINs tend to trade at market caps equal to 100-250x multiple of annualized onchain revenues, with a few breakouts networks trading at 1000x+ (Arweave, Pokt, Livepeer). Coverage ratio - i.e. onchain revenues as a percentage of new token issuance - tends to be less than 1%.

• 💦🔬 Tx-Level Alpha: While (re-)staking plays a relatively small role in DePIN today, that is quickly changing. In this transaction, a user stakes FIL and mints pFIL, a liquid staking derivative backed 1:1 by locked FIL with no slashing risk. Parasail's pFIL staking pool has attracted >$60m of TVL since launching in January and is currently yielding 21% — more than doubling Glif's 9.5% APY.

• Helium is a decentralized wireless infrastructure network that provides connectivity for both IoT devices and 5G. Since launching nationwide coverage of its $20/month unlimited phone plan in December, Helium Mobile has seen a large uptick in new subscribers. They added over 20,000 subscribers in December alone and 65,000 in the first six months of 2024, bringing the total number of Helium Mobile subscribers to over 90,000. 

• Helium Mobile’s early momentum and adoption has accelerated overall network usage. Mobile has only ~17,000 hotspots compared to IoT’s nearly 380,000, but it still drastically outpaces IoT in terms of network usage. Over the last month, IoT usage in USD has averaged only ~5% of Mobile usage in USD.

• Data Credits are used as the payment of data transfer on the Helium IoT and Mobile networks. Data Credits are minted by burning HNT. The launch of Helium Mobile nationwide has led to Mobile accounting for the lion’s share of daily $HNT burn (data usage on Wi-Fi hotspots):

• Livepeer is a video infrastructure network for live and on-demand streaming. It has integrated AI Video Compute capabilities (AI Subnet) by harnessing its massive GPU network and plans to become a key infrastructure player in video-focused AI computing. To enable a high-quality AI developer experience, improve the Node Operators experience, and expand the network for the efficient execution of custom models and workflows, 25,000 LPT ($500,000+) from the treasury has been deployed after the community governance approval.

• The number of payment tickets won by Node Operators on the AI Subnet increased rapidly, indicating growing traction and adoption. The rising number of redeemed tickets highlights the demand for AI services. This growth drives the need for significant investment in the subnet for future expansion.

• Livepeer is 80% cheaper than traditional cloud services for video streaming without compromising quality and scalability. Due to market competition, the cost of transcoding on the network dropped from approximately 16 cents/hour in Jan 2024 to 13 cents/hour last week.

• 💦🔬 Tx-Level Alpha:This is the first transaction for an AI task on the Livepeer Subnet, and it marks a milestone representing the introduction of a new job type for node operators. AI-enabled GPU owners can now join and earn. Since this initial transaction, over 400 winning tickets have been cashed in, showcasing robust growth and opportunity within the network.

• DIMO is an open connected vehicle platform that gives drivers insight into car health & driving habits, while rewarding users with $DIMO tokens. Rewards are used on auto services like insurance, maintenance, repairs, or EV charging. Since launch in Q4 2022 there have been 86k+ vehicles added to the network and 32k+ unique drivers, averaging 2.7 cars connected per user. 77% of cars are paired using native software, with the other 23% using DIMO hardware devices connected to the car's OBD2 port.

• The DIMO platform began distributing $DIMO tokens in December 2022, by rewarding users for maintaining their vehicle's connection to the network. The retention in DIMO Rewards recipients is very promising with 50% of users still holding 100% of any token rewards received from the protocol.

• Users earn rewards by using service providers available in the DIMO Marketplace. These platforms offer services like repairs, insurance, financing, EV charging, carbon credits, and more. Since the launch of the Marketplace, partners have issued 122,589+ $DIMO in rewards totaling ~$26,990 in value.

• 💦🔬 Tx-Level Alpha: In March, DIMO launched the Developer License, a first step to a fully self-service developer model. The Developer License Contract (DLX) governs the administrative functions that can be applied to the licenses. This is where you can specify how to issue a license and modify your license details. This transaction is the most recent DIMO developer license issued. Since launch there have been 12 licenses issued representing a new wave of builders on the DIMO protocol leveraging the APIs.

• Hivemapper is a decentralized mapping project that uses purpose-built dashcams to capture street-level imagery. Map AI extracts objects and intelligence from the imagery, and map data customers purchase credits to access APIs that deliver imagery and map features. Drivers using the Hivemapper dashcam mine $HONEY while they drive, and map customers burn $HONEY when they purchase credits. In Q2 2024, Hivemapper burned 1.7M tokens representing about half of the total 3.4M tokens burned to date.

• The Hivemapper Foundation recently approved MIP-15, a consumption-based deflation mechanism. Each week, 75% of HONEY redeemed for map credits will be permanently burned, and 25% will be re-minted as Consumption Rewards, up to a cap of 500K HONEY per week. Any excess will be permanently burned.

• The new token mechanics align with increased demand for Hivemapper map data. Hivemapper doubled its customer base in the first 6 months of 2024 and continues to scale its contributor network for greater map coverage. Currently, Hivemapper covers 21% of the global road network with 143K contributors.

• 💦🔬 Tx-Level Alpha: The largest single burn event for the Hivemapper network occurred on Apr. 26, 2024, ahead of the MIP-15 adoption. The burn reflects an increased demand from Hivemapper customers, which include 2 of the top 10 digital map providers in the world. Now, with the deflationary reward structure and several pending data purchases, Hivemapper is set for a stronger equilibrium of value between new drivers, network contributors and new customers.

• IoTeX is a modular Web3 infrastructure platform connecting smart devices and real-world data to blockchains, focused on the DePIN sector. Backed by a global team of 60+ research scientists and engineers, IoTeX combines its EVM-compatible L1 blockchain, off-chain ZK compute middleware W3bstream, and open hardware to connect smart devices and dApps across the physical and digital world. IoTeX has over 306k global users across 120 countries.

• DePINscan, built by IoTeX, is a map explorer and dashboard for the DePIN community, where all device data is processed by IoTeX's off-chain compute middleware. The number of connected devices has surged from 578,197 on Mar. 12 to 1,160,495 today.

• IoTeX now has the 7th fastest blockchain in the world with a max recorded TPS of 830 transactions per second.

• 💦🔬 Tx-Level Alpha: This is a transaction adding 40,000 $WIFI (valued at over $7000 USD) to a liquidity mining contract which is paid back to users who add liquidity to the LP on mimo, the IoTeX DePIN DEX. This equates to an APR of 163%. By working with DePIN projects like WiFi Map, IoTeX stimulates trading volume on DePIN tokens while also stimulating activity on the IoTeX network. Similar APRs are also available for other DePIN projects such as Geodnet, ATOR and Drop Wireless.

• Glow is a solar-to-earn protocol built to advance the greatest success in crypto which is Bitcoin’s Proof of Work consensus mechanism. Glow’s Solar Farms are powering the world by mining carbon credits which they can sell while also being rewarded for the electricity they produce. This double disruption of the renewable energy market is why Glow, while still in a guarded launch, is now the 2nd largest DePIN project on Ethereum for revenue.

• Did you know that each solar panel offsets as much carbon as 50 trees? The remarkable power of solar means that even in it's pre-launch stage with just 23 solar installations making a total of 665 solar panels, the Glow Protocol is offsetting as much carbon as 33,250 trees daily! Glow audits & publishes how much electricity is being produced as well as the carbon credits being generated by each farm on a weekly basis.

• Glow Protocol's monthly power output has approximately doubled every single month for the last 3 months. Glow International is now rolling out an advanced CRM system to accelerate onboarding of solar farms.

• 💦🔬 Tx-Level Alpha: What is happening in this transaction? A solar farm is paying their protocol fee in USDG (a USDC Wrapper). Why does it matter? Once solar farms pay their protocol fees, they are able to start earning rewards for their carbon credits produced. All protocol fees paid are contributed to the cash rewards pool which distributes the USDG as rewards to solar farms based on their carbon credit output. The more protocol fees paid, the larger the rewards pool, the more incentives for farms to join Glow, and the greener Glow makes the planet.

• WeatherXM is a DePIN network focused on weather data. The company sells home weather stations, which collect and sign weather readings. These are used to create a hyperlocal weather forecast for the user. On the demand side, WeatherXM's data is combined into a global forecast, access to which is sold to companies whose businesses rely on accurate forecasts. WeatherXM has manufactured ~7,800 weather stations, of which ~4,700 are actively collecting and contributing data to weather forecasts.

• A total of 2M weather station-days have now been collected on the network, 141K in the last month alone. As this number grows, there is more data to build weather forecasting models, and the accuracy of these models improves. WeatherXM's raw weather data is stored on IPFS, and can be found here.

• ~21K $WXM tokens are emitted each day, of which ~14K are base emissions and ~7K are boosted emissions. This compares to ~7K tokens claimed per day, or about 33% of total emissions.

• 💦🔬 Tx-Level Alpha: ~14K $WXM tokens are distributed per day to weather station owners as base rewards. At current prices, this is worth ~$12.6k.

Thanks for reading OurNetwork! Subscribe for free to receive new posts and support our work.