DePIN Economic Loop

Definition ∞ The DePIN Economic Loop describes the self-sustaining financial model within Decentralized Physical Infrastructure Networks. This loop involves users contributing real-world resources, such as computing power or data storage, to a decentralized network. In exchange, they receive token rewards, which can then be used to access network services or traded, thereby creating a continuous incentive for participation and network expansion.
Context ∞ DePINs are a prominent area of innovation in the digital asset space, with news often reporting on new projects establishing these loops. Understanding this economic structure is crucial for evaluating the long-term viability and growth potential of decentralized infrastructure projects and their associated tokens. This model supports the expansion of real-world decentralized services.