Exploring Automotive DePINs: The Case of Hivemapper and the Rise of DeDrive
The global automotive market holds immense potential: There are over 1.6 billion vehicles worldwide, yet only 250 million are connected. This emerging paradigm, known as ‘Drive to Earn’ or ‘DeDrive’, is revolutionizing the sector.
DePIN, or Decentralised Physical Infrastructure Networks, a term coined by Messari, refers to decentralized physical infrastructure networks. Messari categorizes DePIN into four segments: service networks, wireless networks, sensor networks, and energy networks. These can be hardware-based, such as computers, storage devices, or general applications like infinite routers and dashcams.
For consumers (C-side), there’s a natural demand for superior hardware experiences, while businesses (B-side) seek precise data collection to optimize products. Notable DePIN projects, like MOBILE (focused on mobile phones) and HONEY and DIMO (centered on automobiles), demonstrate this trend. With over 1.6 billion vehicles globally, every fourth person on average owns a car, making the automotive sector a prime focus for DePIN applications.
However, road traffic accidents cause 1.3 million deaths annually, with 90% occurring in low and middle-income countries, disproportionately high compared to the number of vehicles and roads in these regions. This underscores the urgent need for innovative solutions in the automotive domain.
Vehicle Network Connectivity and DeDrive
As the Internet of Things (IoT) evolves, the concept of the Internet of Vehicles (IoV) has gained traction. It partially addresses data collection issues in vehicles, but its growth is hampered by the centralization of involved enterprises and the siloed nature of manufacturer ecosystems.
Blockchain and DePIN are changing this dynamic. Integrating blockchain and cryptocurrencies with device manufacturers accelerates funding and attracts a broader user base, benefiting both. The ‘Drive to Earn’ model, or ‘DeDrive’, is emerging as a consensus in the Web3 context.
Hivemapper and Dimo are prominent in the DeDrive landscape. Hivemapper, a leading DePIN concept on the Solana blockchain, aims to create a decentralized ‘Google Maps’. Users earn HONEY tokens by sharing real-time images via a Hivemapper dashcam. The official Hivemapper API, sourced from logistics and surveying companies, offers competitive services to both B-side and C-side users.
Hivemapper’s potential market value could rival Google Maps, given its innovative approach. The network comprises two main components:
• Dashcams: Collect 4K images and GPS metadata, including LoRa sensors using Helium’s IoT network. There are two versions, priced at $300 and $649, catering to different mapping needs.
• Contributor App: Pairs with dashcams over Wi-Fi, transmitting data for processing in the map network.
Tokenomics of HONEY: With a maximum supply of 10 billion, the tokens are distributed among contributors (40%), investors (20%), Hivemapper employees (35%), and a foundation (5%).
Dimo, built on the Polygon platform, allows drivers to collect and share vehicle data. Unlike Hivemapper, which focuses on external data, Dimo organizes internal vehicular data. This data aids in predicting maintenance needs and allows drivers to earn DIMO tokens. As of now, 280,000 vehicles are linked to the Dimo network, covering over 153 million kilometers.
Tokenomics of DIMO: With a total supply of 1 billion tokens, they are distributed among baseline issuance (38%), Dimo treasury (22%), team (22%), investors (8%), and airdrops (7%).
The future of DePIN in automobiles extends to insurance, used car sales, maintenance, road construction, and rentals. As these sectors integrate with Web3, the pursuit of mass adoption in Web3 becomes more tangible.
The prospects for DePIN are optimistic, but DeDrive might take the lead in popularity in the market before the full arrival of the DePIN era.
