Ordz Games completed its Seed Round Fundraising on 2023-12-24.

The rise and fall of DePIN projects in Web3 reveals the contradiction between hype and reality. While the concept of decentralized infrastructure attracts investors, most projects profit only from high-priced hardware sales, failing to achieve sustainable development, resulting in losses for investors. Successful DePIN must have real scenarios and effective incentive mechanisms to realize its vision and contributions.

The repetitive script of the Web3 world: The incentive trap from GameFi to DePIN In recent years, the Web3 space has been continuously playing out the old routine of "economic incentives + scenario packaging." From the Filecoin mining boom a few years ago, to the frenzy of the last round of GameFi, and now to the currently popular concept of DePIN (Decentralized Physical Infrastructure Network), it seems that each round is repeating a similar pattern. GameFi once attracted numerous investors with the slogan "play games to earn tokens," but ultimately failed to achieve sustainable development. Token prices fluctuated wildly, users rapidly left, and the ecosystem struggled to survive. Now, DePIN has reignited market enthusiasm with broader application scenarios. From charging, making calls, to installing sockets, driving cars, and even the act of drinking water in daily life, all are packaged as opportunities to earn token rewards. On the surface, DePIN seems to be better than G

DePIN, as an emerging concept in Web3, claims to combine real life with Token economics, but in practice, it has exposed issues such as high costs and low returns, leading to significant losses for investors and making sustainable development difficult. This phenomenon raises questions about whether DePIN truly drives infrastructure innovation or if it is merely an eyewash. A genuinely successful DePIN requires an effective supply-demand model and a transparent incentive mechanism.

The "economic incentives" traps in the Web3 world: The reality and illusion of DePIN projects. In recent years, the Web3 field has been continuously showcasing the old routine of "economic incentives + scenario packaging." From Filecoin mining machines to the GameFi craze, and now to the concept of DePIN (Decentralized Physical Infrastructure Network), although these projects once had great momentum, they ultimately failed to find a sustainable commercialization path. The emergence of DePIN has once again ignited enthusiasm in the Web3 community. Compared to GameFi, DePIN seems to be closer to real life, covering multiple fields such as electricity, communication, and transportation. However, when we take a closer look at these projects, we find that they may just be another round of "zombie" hardware scams. More than 60% of DePIN device suppliers in the market come from Huaqiangbei, Shenzhen, and the selling price of these devices is often 30-50 times the wholesale price. Big

The DePIN project has sparked heated discussions in Web3. Although its application scenarios are broad, there are numerous issues with actual implementation and economic models. Currently, many projects rely on hardware sales, and investors face losses, questioning their authenticity and innovation, which may lead to speculation bubbles. A truly successful DePIN must possess sustainable incentive mechanisms and user network effects.