In a significant achievement for decentralized infrastructure, XYO Network has successfully onboarded over 10 million nodes to its Decentralized Physical Infrastructure Network (DePIN). In a recent interview with Cointelegraph, co-founder Markus Levin revealed that the majority of these nodes are human users providing data in exchange for rewards through the network’s mobile application, COIN.
Levin elaborated that while the predominant share of these 10 million nodes are mobile users, a portion also includes Internet of Things (IoT) devices such as smart speakers. Impressively, approximately 80% of XYO’s users are non-crypto natives, engaging with Web3 for the first time. This diverse user base comprises truckers, rideshare drivers, delivery personnel, and healthcare professionals, highlighting the range of everyday individuals making valuable contributions to the network. Levin reported a remarkable conversion rate, with 95% of users continuing to engage with the platform after onboarding through the COIN app.
Understanding DePIN Tokenomics
As part of its incentive structure, XYO rewards its users with points for data contributions, which can be redeemed for its native XYO token, as well as Bitcoin, Ethereum, or even gift cards. This strategic approach not only enhances user engagement but also broadens the appeal of the platform beyond typical crypto users.
In October 2024, XYO made a strategic move by bridging its native token to the Solana blockchain in an effort to reach a wider audience. Currently, the XYO token boasts a market capitalization of approximately $180 million, indicating a strong market presence.
The revenue generated by XYO stems from the collection and validation of data across various sectors, including real-world assets and gaming. A portion of this income is allocated towards buying back the XYO token, thereby supporting its value in the market.
Earlier this year, XYO also launched a layer-1 blockchain designed to aggregate real-world data from its nodes onto a public ledger. The validators on the network participate by staking XYO and are rewarded in XL1, the newly introduced gas token of the network.
The emergence of DePINs reflects a significant trend within the blockchain sector, aiming to decentralize essential infrastructure and systems such as communications networks, data warehouses, and energy markets. As labeled in a September 2024 report by MV Global, these systems present a promising opportunity to onboard new users to the crypto space, potentially attracting a vast audience.
MV Global estimates that the DePIN ecosystem encompasses over 1,000 projects with a combined market capitalization nearing $50 billion, indicating a burgeoning field ripe for innovation and growth.
Magazine: 10 Crypto Theories That Missed as Badly as ‘Peter Todd is Satoshi’
