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- Is this the DePIN Formula?
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Hello Team,
Quick question before we start:
Let’s keep moving forward ⏩️
Sean Pinnock, CEO of Avalon joined us recently on Project Spotlight.
It’s fair to say it was one of our favourites.
We got into building the web3 gaming platform which combines AI, web3 and community contributions to revolutionize game creation.
Avalon enables players to craft diverse gaming experiences using advanced AI and 3D character modelling technologies, fostering an extensive, player-generated universe.
Our vision for Avalon is to make it so that I can make all the games that I want to make but by extension players are going to be able to make all the game experiences they want to make.
It was a lot of fun talking to Sean - and we loved the idea of digital heirlooms: gaming assets that we pass on to loved ones after we die. ⚰️
ON YOUR RADAR
🤝 Data Lake is teaming up with Axon DAO and joining the Health Data Alliance.
🚘️ The Natix token launch is coming. Here’s the economy, explained.
🔵 The AthenaDAO token has an awesome ticker. $ATH is live on Base.
🤖 We’re into Cybernetics and Human Augmentation Technologies now. Listen to this and you can be too.
🌐 Geodnet is the DePIN enabling crazy accurate drone precision. Watch and geek out.
If you’re using Bitcoin’s mining incentive philosophy to encourage solar panel adoption then you’re pretty badass.
So we already like David Vorick, Founder of Glow.
But if you can also drop an ELI5 on DePIN for us, then we like you even more.
We highly recommend watching this video from a presentation at EthDenver back in February.
David joins the dots between Bitcoin and the decentralized infra projects we’re calling DePIN.
The thesis: Bitcoin is the foundational DePin project, setting precedents for how decentralized systems can incentivize physical infrastructure development using blockchain technology.
"Bitcoin is kind of like the grandfather of the entire space; it's the most successful DePin project ever launched."
The DePIN Five Point Plan:
DePin projects can emulate Bitcoin in five significant ways to harness the proven effectiveness of its model:
Large Rewards Pool: Like Bitcoin, which distributes a significant amount of value to its miners, DePin projects should also have a substantial rewards pool. This pool incentivizes participants by providing ample compensation for their contributions to the network, thereby attracting more participation and investment.
Proportional Rewards Distribution: Rewards in Bitcoin are distributed based on the amount of computational work performed by miners. DePin projects should follow this model by ensuring that rewards are distributed proportionally to the value each participant brings to the network. This ensures fairness and maintains high levels of participant motivation.
Permissionless Competition: Bitcoin allows anyone to join the mining process without needing permission from any governing body. DePin should adopt this approach by ensuring that all interested parties can compete on an even playing field. This openness fosters innovation and allows the most efficient and effective solutions to prevail.
Objective and Transparent Metrics for Rewards: The success of Bitcoin relies on the clear and objective measurement of contributions (hash rate), which directly correlates to the rewards distributed. DePin projects should establish similar clear, objective criteria for measuring contributions to ensure transparent and fair reward distribution.
Emphasis on Security and Infrastructure Efficiency: Bitcoin’s focus on maximizing security and optimizing the efficiency of its infrastructure should be a model for DePin projects. Ensuring robust security and continuously improving infrastructure efficiency are crucial for the long-term sustainability and success of DePin initiatives.
By integrating these aspects, DePin projects can replicate Bitcoin's success in incentivizing and managing decentralized networks, thereby fostering growth and innovation within the sector.
▶️ Watch the video in full on YouTube.
The Bionic newsletter is meant for informational purposes only. It is not meant to serve as investment advice. Please consult with your investment, tax, or legal advisor before making any investment decisions.
Disclosure: Authors may own cryptoassets named in this newsletter.
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