30 days up 19 times, a brief analysis of the automotive DePIN model represented by Hivemapper
The real world will be integrated with Web3, and the mass adoption that Web3 has been pursuing will also arrive.Author: FutureMoney Group
TL; DR
The global automotive market has immense potential: the global vehicle ownership has exceeded 1.6 billion, while only 250 million are connected;
We can refer to this paradigm as "Drive To Earn," or "DeDrive";
DePIN completes the coupling of real-world entities and the on-chain world from the bottom up: DePIN projects related to automobiles almost all rely on real income from the real world, with token economics serving as a tool to drive the flywheel and organically combine with the inherent system of products.
DePIN & Drive To Earn
The term DePIN was proposed by Messari, referring to Decentralised Physical Infrastructure Networks. Messari divides the DePIN track into four major segments: service networks, wireless networks, sensor networks, and energy networks.
If categorized by hardware performance, it can be roughly divided into three categories: computing, storage, and general applications.
Among general applications, we find familiar hardware devices like unlimited routers and dashcams. For C-end users, there is a natural demand for better hardware experiences, while B-end clients are driven by the need to optimize products through more accurate data collection. Therefore, we can see that based on DePIN, projects like MOBILE around smartphones, and HONEY, DIMO around automobiles are experiencing promising trends. Among these, the ecosystem focusing on data collection and decentralized supporting services around automobiles is particularly prominent.
On one hand, automobiles are the most relevant assets for general users globally, with a wide audience. As of now, global vehicle ownership has exceeded 1.6 billion, which means that on average, one in four people owns a car, based on the global population of 7 billion. These vehicles travel on over 64 million kilometers of roads worldwide.
However, at the same time, statistics show that road traffic accidents cause 1.3 million deaths globally each year, with 90% occurring in low- and middle-income countries. The death rate in these countries is disproportionately high compared to the number of vehicles and roads they possess.
The demand from C-end and B-end users in the automotive field is particularly urgent.
Internet of Vehicles Concept and DeDrive
On the other hand, with the widespread development of the Internet of Things concept, the "Internet of Vehicles" concept, which builds smart facilities based on automobiles, has also gained global attention and capital investment.
The Internet of Vehicles concept partially addresses the issue of automotive data collection, but due to the excessive centralization of related enterprises, coupled with different manufacturers striving to create moats, the customized development of cases is also detrimental to diluting R&D costs. Ultimately, these costs are passed on to consumers, which also limits the development of "connected vehicles" to some extent.
With the rise of blockchain concepts and DePIN, the paradigm of "bringing blockchain technology and cryptocurrency elements into related device manufacturers to help them complete the funding flywheel faster, while providing tokens to attract a broader user base for co-construction and allowing users to profit from it" is gradually becoming a consensus, at least in the context of Web3.
We can refer to this paradigm as "Drive To Earn," or "DeDrive."
Currently, the main representatives of DeDrive projects are Hivemapper and Dimo. Future Money Group will organize information around these two projects and related projects that support Drive.
DeDrive Concept Projects
Hivemapper
HiveMapper is one of the top DePin concepts on Solana, creating a decentralized "Google Maps." Users can earn HONEY tokens by purchasing the dashcam launched by HiveMapper, using it, and sharing real-time footage with HiveMapper.
HiveMapper officially collects map and road condition information from a special user group of logistics and surveying companies to create an API interface to provide services for B-end or C-end users in need.
Compared to Google Maps, HiveMapper ensures the enthusiasm and accuracy of data providers through token incentives. Additionally, due to the existence of tokens, the official does not face significant operational expenditure pressure, but can instead provide cheaper and more cost-effective API services to B-end users, achieving a competitive advantage.
In fact, as an alternative to Google Maps API, millions of companies rely on Google Maps API to support their location data, and the price of this service has significantly increased in recent years.
As a challenger to Google Maps, Hivemapper theoretically has a potential market value that can at least match that of Google Maps.
The Hivemapper network has two main components:
- Dashcam: An internally open-source dashcam that collects 4K images and related GPS metadata, including a LoRa sensor, using Helium's IoT network to verify location.
Currently, there are two versions of the HiveMapper dashcam: Hivemapper Dashcam (priced at $300) and S version (priced at $649). The former is suitable for standard mapping, capable of capturing 4K at 10fps, while the latter is smaller and more discreet, capable of capturing 4K at 30fps.
- Hivemapper Contributor App, which pairs with the dashcam via Wi-Fi to transfer images and location data from the dashcam to the user, and the app transmits the data from the device to the map network for processing.
Token Economics: The HONEY token has a fixed maximum supply of 10 billion, distributed as follows:
• 40% to contributors as rewards for participating in map data contributions;
• 20% to investors as initial funding for launching the mainnet;
• 35% to Hivemapper employees for daily operations and iterations of the mainnet;
• 5% to the foundation to promote the management and success of Hivemapper.
HONEY tokens are used to create economic incentives within the Hivemapper network while balancing the needs of the two groups within the ecosystem:
Map data contributors: HONEY serves as a reward for submitting information, editing map data, and completing AI training tasks.
Businesses and developers using map data to support their products and services: HONEY serves as a burn cost when calling Hivemapper network data.
Overall, the on-chain market between contributors and clients in the Hivemapper network is created through a Burn & Mint mechanism, where HONEY burned by clients when using API services is re-Minted as rewards for contributors.
As the demand for map usage increases, the speed of HONEY being burned and re-Minted will also accelerate.
Currently, HiveMapper has drawn on over 30,000 contributors globally, mapping road condition information across 1,376 regions, totaling 96 million kilometers, and generating nearly 13 million transactions based on this information.
Dimo
Dimo is an automotive IoT platform built on Polygon that enables drivers to collect and share their vehicle data, including mileage, speed, location tracking, tire pressure, and battery/engine health.
If Hivemapper focuses on collecting external environmental data related to automobiles, Dimo organizes internal driving data of vehicles.
By analyzing vehicle data, the Dimo platform can predict when maintenance is needed and timely remind users, allowing drivers to gain insights into their vehicles while contributing data to Dimo's ecosystem to earn DIMO tokens as rewards. Data consumers can extract data from the protocol to understand the performance of components like batteries, autonomous driving systems, and controls. This will help develop disruptive new applications for fine-grained insurance, ride-hailing, traffic navigation, vehicle financing, and energy network optimization.
As mentioned above, there are approximately 1.6 billion vehicles globally, with around 250 million connected vehicles. On one hand, for connected vehicle manufacturers like Tesla, once they sell vehicles to users, they often integrate various road and vehicle condition information and package it into new services to charge users again. On the other hand, 84% of vehicles currently on the road may still be unconnected due to reasons like being older models.
This undoubtedly presents a huge development space for Dimo. Similar to Hivemapper, Dimo's products also include both hardware devices and an app.
The hardware device is called AutoPi (priced at $299), which can connect all vehicles produced from 2008 onwards to the internet.
Once AutoPi is linked to a vehicle, users can monitor the vehicle's performance and health data in real-time through the app, and during this process, users will receive DIMO token rewards.
Token Economics: DIMO is the native token of the Dimo protocol, used to reward users and contributors.
The total token supply is 1 billion. Among them,
• 38% for baseline issuance, with 380 million DIMO distributed over 40 years, starting with 1,105,000 $DIMO issued weekly in the first year, decreasing by 15% each year;
• 22% for the Dimo treasury, which may reward teams and individuals contributing to the network in the form of bounties or grants;
• 22% for the team, with token distribution subject to a two-year lock-up, then linear unlocking monthly until fully unlocked after three years;
• 8% for investors, with token distribution subject to a two-year lock-up, then linear unlocking monthly until fully unlocked after three years;
• 7% for airdrops;
Currently, DIMO has the following four main functions:
- Reward distribution: Users can earn DIMO tokens in two ways.
Baseline issuance rewards: As long as users are connected to the product, they can still earn DIMO tokens even if the end customer does not use the corresponding data.
The number of DIMO tokens distributed will gradually increase weekly, and the efficiency of user points acquisition depends on the user's account level, which in turn depends on the duration of the user's entry into the Dimo ecosystem. In other words, early entrants will receive more tokens weekly as the number of token distributions and levels increase.
Market issuance rewards: When users transact with authorized DIMO applications, they will receive additional DIMO tokens. As long as the rewards are issued in DIMO form, the quantity and terms of the rewards are specified by the application developers.
Transaction needs: Token holders can buy and sell vehicle data using $DIMO tokens, as well as purchase Dimo AutoPi connection devices.
Governance rights: $DIMO token holders can vote on how the protocol operates, including but not limited to software code upgrades, protocols and standards; how fees are generated, how rewards are distributed, etc.
Indicating community belonging: Token holders can gain access to special application features and events.
Currently, nearly 28,000 vehicles are connected to the Dimo network, with users accumulating over 153 million kilometers of mileage. A total of 71 brands of cars are connected to Dimo, with Tesla, Ford, and BMW ranking in the top three. In the past year, over 57 million $DIMO tokens have been distributed to users, valued at approximately $13 million. If the estimated valuation of each vehicle on the network is summed up, it will exceed $750 million.
Atlas Navi
Atlas Navi is the first Drive to Earn navigation application using artificial intelligence. The smartphone camera can detect road conditions (closures, construction, potholes), accidents, traffic conditions in each lane, available parking spots, police cars, and re-route drivers to avoid problematic roads, thus avoiding traffic congestion. It uses licensed 3D NFT vehicles as representatives of drivers and rewards those who provide camera data (optional) for every mile driven.
The token economics of Atlas Navi consists of three parts:
Vehicle NFT: Similar to Stepn's sneakers (which have consumption elements like fuel), only users holding the NFT can earn MILE through Atlas Navi products and convert it to NAVI.
MILE: A points-like token used to record the mileage of users while using the product, which can be exchanged for NAVI by holding the NFT.
Users can also hold different vehicle NFTs to engage in "Drive to Earn" activities.
- NAVI is the native token of the Atlas Navi ecosystem, used for user Drive to Earn rewards and payments for official NFTs and service subscriptions.
The total supply of NAVI tokens is 300 million, with the following distribution:
• 30% for user incentives
• 9% for the team;
• 10% for the development team;
• 10.67% for the marketing department;
• 13% for initial liquidity;
• 5% for the advisory team.
The above three are currently the most popular DeDrive projects with good token performance. In fact, there are many other DePIN products centered around automobiles.
For example, Moveo: Moveo focuses on the Internet of Vehicles and insurtech, providing in-depth insights into driving safety through specialized onboard hardware and patented software technology, combining vehicle data and driver data, and offering innovative services.
Or Soarchain: Soarchain is an application-based blockchain based on Cosmos, aimed at providing direct and fast data transmission services between vehicles, infrastructure, and networks. On Soarchain, vehicles share data with each other through cellular technology and record this data on the blockchain, while rewarding users who perform the above operations with Soarchain's native tokens. The platform allows vehicles to contribute to the vehicle network anonymously and privately while maximizing their benefits by utilizing applications running on the network and receiving rewards simultaneously.
In addition, there are DePIN projects focused on automotive charging services, such as PowerPod.
PowerPod
PowerPod is a global electric vehicle (EV) charging network designed to quickly form a decentralized organizational structure, GameFi mechanics, and a positive revenue model while maintaining low maintenance costs. The network is owned by individuals and communities, avoiding various issues associated with centralized management. Using blockchain technology ensures data security and transaction transparency within the network. The latest charging technology guarantees safe, efficient, and highly compatible charging while providing various personalized and intelligent services. In the future, the PowerPod network is expected to become an extension and supplement to the traditional power grid, forming a new power supply network alongside the grid.
PowerPod will produce a series of smart hardware to ensure that charging behavior is measurable, computable, and trustworthy.
The first phase will focus on charging gun adapters. By adding removable adapters to charging piles that cannot share data, key data during the charging process can be accurately captured and securely sent to the blockchain. Blockchain-based contracts will calculate this data to incentivize positive behavior.
The second phase of hardware will be high-performance home AC chargers.
The third phase of hardware is a "mobile charger," allowing owners to charge using regular outlets in emergencies (current 10-16A).
Token Economics: PowerPod adopts a token model similar to Hivemapper and Dimo: points + tokens.
Within PowerPod, PT is a points-like currency with no total supply cap, automatically generated based on various incentive-driven positive behavior algorithms (e.g., using PowerPod smart chargers to charge 1 kilowatt earns 1 PT reward).
Another token, PPD, is the native & governance token of the ecosystem.
The total supply of PPD is 100 million, with 12.5 million produced in the first year, halving every four years. Among them:
• 45% of PPD will be used to incentivize positive behavior;
• 15% allocated to developers;
• 18% allocated to investors;
• 2% allocated to advisors;
• 20% allocated to the ecosystem.
Additionally, the portion of PPD used for mining will be pooled into a dividend pool. The dividend pool distributes dividends every 12 hours. Distribution is based on the proportion of PT deposited into the fund pool relative to the total. Once PT is transferred to the dividend pool, it cannot be withdrawn, and after dividends are distributed, the PT in that batch will be burned.
For example, user John transfers 100 PT into the dividend pool, and at the end of the dividend period, there are 10,000 PT in the pool. He will receive 1% of the accumulated dividends in the dividend pool, which amounts to 77 PPD (assuming the first year’s dividend distribution is approximately 7,706 PPD). After distribution, all 10,000 PT in the pool will be burned.
Difference Between DeDrive and Move to Earn
At first glance, DeDrive concept projects may seem similar to Move To Earn projects represented by Stepn in terms of token output. However, there are essential differences between the two. Although both play a similar role in expanding the Web3 concept: penetrating the Web3 ideology outward through behavior incentives in a more understandable way, Stepn's X To Earn projects primarily drive expansion through token economics, with the essence of maintaining the Ponzi system's life by absorbing more potential users. In contrast, DeDrive projects rely on physical entities, fundamentally representing the recognition of blockchain technology and decentralized governance thinking by technology companies.
We see that the aforementioned cases almost all rely on real income from the real world, with token economics serving as a tool to drive the flywheel and organically combine with the inherent system of products.
We can understand it this way: if X to Earn projects represented by Stepn interpret and validate the paradigm of human behavior obtaining benefits on-chain, then the DeDrive concept represented by Hivemapper completes the coupling of real-world entities and the on-chain world from the user level. The former influences the economic foundation from the top down, while the latter builds the foundation needed for the upper structure from the bottom up.
Conclusion
Automotive DePIN or DeDrive projects are further deepening the connection between the traditional world and the Web3 world. For example, Dimo founder Andy C has interpreted the idea of creating a DMV based on its network and putting vehicle ownership on-chain. If this step is realized, the on-chain system will truly enter the real world on a large scale. Data is valuable, and the data contributed by each contributor in the DePIN ecosystem should receive more valuable analysis and application, thereby exerting greater value.
In the future, the DePIN paradigm represented by automobiles will further extend to related fields (which will have a greater impact than mobile-related DePIN), such as the vehicle insurance market, used car sales market, parts maintenance, road construction, and car rental. At that time, the real world will integrate with Web3, and the mass adoption that Web3 has always pursued will also arrive.
We have ample reason to hold an optimistic expectation for the prospects of DePIN, but before the true arrival of the DePIN era, DeDrive may take the lead and become one of the most popular targets in the market.
