Understand the automotive DePIN industry represented by Hivemapper

Repost the original title: FMG research report: Increased 19 times in 30 days, to understand the automotive DePIN industry represented by Hivemapper

TL; DR

The global automotive market has huge potential:There are more than 1.6 billion cars in the world, but only 250 million are connected;

We can call this paradigm “Drive To Earn”, or “DeDrive”;

DePIN completes the bonding of real-world entities and the world on the chain from bottom to top: almost all DePIN projects related to automobiles are supported by income from the real world. Token economics, as a tool and product to impel the flywheel, is organically combined with the inherent system.

DePIN & Drive To Earn

The term DePIN was proposed by Messari and refers to Decentralized Physical Infrastructure Networks, that is, decentralized physical infrastructure. Messari divides the concept of DePIN into four major plates: service network, wireless network, sensor network and energy network.

If it is to be divided according to hardware manifestations, it can be roughly put into three categories: computers, storage and general applications.

Among the three of them, general applications include hardware devices such as wireless routers and driving recorders are what we are currently familiar with. For C-end users, there is a natural need for a better hardware experience, while for B-end customers, there is also an inherent driving force to optimize products by collecting more accurate data. Therefore, we can see that based on DePIN, MOBILE that revolves around cell phones, HONEY around cars, and DIMO, are all becoming more prosperous. Among them, the ecology surrounding data collection and decentralized supporting services around automobiles stand out the most.

On the one hand, cars, as the most closely related asset to general users around the world, have a wide range of audience. So far, the number of cars in the world has exceeded 1.6 billion. Judging from the world’s population of 7 billion - that is: one in every four people owns a car. These vehicles cover more than 64 million kilometers of roads.

At the same time, however, according to statistics, road traffic accidents cause 1.3 million deaths every year, 90% of which occur in countries that have low and middle income. Compared with the number of vehicles and roads these countries have, the death rate is quite high and it is out of proportion.

Therefore, the needs of the above-mentioned C-end users and B-end users are even more urgent in the automotive field.

Internet of Vehicles Concept and DeDrive

On the other hand, with the widespread development of the concept of the Internet of Things, the “Internet of Vehicles” that uses cars as the carrier to build smart facilities ( Internet of Vehicles) “ is also highly valued by global conquest and capital.

The concept of Internet of Vehicles partially solves the problem of automobile data collection, however, due to the over-centralization of related companies and the fact that different manufacturers are committed to building moats, the customized development of cases is also not conducive to companies diluting R&D costs. The cost is ultimately transferred to consumers, which also limits the development of “car networking” to a certain extent.

With the rise of the blockchain concept and DePIN, “blockchain technology and cryptocurrency elements are introduced to relevant equipment manufacturers to help manufacturers complete the capital flywheel faster, and at the same time provide tokens to attract a wider user group to achieve co-construction,” letting users benefit from it.” This paradigm, at least in the context of Web3, has gradually become the current consensus.

We can call this paradigm “Drive To Earn”, or “DeDrive”.

At present, the DeDrive project representatives are mainly Hivemapper and Dimo. Future Money Group will be working on these two projects and related projects supporting Drive.

DeDrive concept project

Hivemapper

HiveMapper is one of the top DePin concepts on Solana. It aims to create a decentralized “Google Map”. Users can obtain HONEY tokens by purchasing the driving recorder launched by HiveMapper, using it and sharing real-time images with HiveMapper.

HiveMapper officially uses the maps and traffic information collected by special user groups such as logistics and surveying companies to create an API interface to provide services to B-side or C-side users in need.

Compared with Google Maps, through token incentives, HiveMapper can ensure the enthusiasm and accuracy of those who collect information to provide data. At the same time, because of the very existence of the token itself, the official’s cost and pressure on administration are taken off. On the reverse, it can provide B-side with cheaper and more cost-effective API services to surpass and be better.

In fact, as an alternative to the Google Maps API. Millions of companies rely on the Google Maps API to support their location data, and the price of the service has been increasing significantly in recent years.

As a challenger to Google Map, Hivemapper’s theoretical potential market value can be at least equal to that of Google Map.

The Hivemapper network has two main components:

1.Dash Cam: An in-house open-source dash cam that collects 4K images and associated GPS metadata, including a LoRa sensor that uses Helium’s IoT network to verify location.

Currently, there are two versions of HiveMapper dash cam: Hivemapper Dashcam (priced at $300) and S version (priced at $649). The former is suitable for standard surveying and mapping, and can shoot up to 4k 10fps, while the latter is smaller and more discreet, and can shoot up to 4k 30fps.

2.Hivemapper Contributor App. The app connects with the dash cam over Wi-Fi and it transmits image and location data from the dash cam to the user. The app transmits the data from the device to the mapping network for processing.

Token Economics:The fixed maximum supply of HONEY tokens is 10 billion, and the distribution method is as follows:

•40% is given to contributors as a reward for participating in map data contribution;

•20% is given to investors as the initial capital to launch the main network;

•35% is given to Hivemapper employees for daily operations and iterations of the main network;

•5% is donated to the foundation to promote the management and success of Hivemapper.

HONEY tokens are used to create economic incentives in the Hivemapper network while balancing the needs of two groups within the ecosystem:

1.Map data contributors: as a reward for submitting information, Honey edits map data, and completes artificial intelligence training tasks.

2.Enterprises and developers who use map data to support their products and services: HONEY is used as the destruction loss when calling Hivemapper network data.

In general, the on-chain market between contributors and customers of the Hivemapper network is created through Burn & Mint deconstruction. Whenever a customer uses the API service, the HONEY burn will be minted again as a reward and given to the contributor.

As the demand for map usage increases, HONEY will be burned and remembered faster.

Currently, HiveMapper has mapped 1,376 regions with a total of 96 million kilometers of road information through over 30 thousands contributors around the world, and generated 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 car mileage, speed, location tracking, tire pressure, battery/engine health, and more.

If Hivemapper is for the collection of external environmental data of cars, then Dimo is for the collection of internal driving data of cars.

By analyzing vehicle data, the Dimo platform can predict when maintenance is needed and remind users in time. In this way, drivers can not only gain in-depth understanding of their vehicles, but also contribute data to Dimo’s ecosystem and receive DIMO tokens as rewards. As a data consumer, data can be extracted from the protocol to understand the performance of components such as batteries, autonomous driving systems and controls. This will help develop disruptive new applications for fine-grained insurance, ride-hailing, transportation/navigation, vehicle financing, energy network optimization, and more.

From the above, the current number of cars in the world is about 1.6 billion, and the number of connected cars is about 250 million. Internet-connected car manufacturers such as Tesla often charge users’ fees by integrating various road and vehicle condition information and condensing them into new services after selling the vehicles to users. On the other hand, 84% of the vehicles currently driving on the road may not be connected to the network due to old models and other reasons.

This undoubtedly brings huge space for development to Dimo. Similar to Hivemapper, Dimo’s products also include hardware devices and APPs.

Among them, the hardware device is called AutoPi (priced at $299). By plugging the device into the car, it can help all cars produced in 2008 and later become connected to the Internet.

After AutoPi is linked to the car, users can monitor the car’s performance and health data on the APP. At the same time, in the process, users will be rewarded with DIMO tokens.

Token Economics: DIMO is the native token of the Dimo protocol and is used to provide rewards to users and contributors.

The token supply is 1 billion. in which,

•The baseline issuance ratio is 38%, and 380 million DIMO will be distributed over 40 years. In the first year, 1,105,000 $DIMO will be issued to users every week, and the issuance will decrease by 15% every year;

•Dimo accounts for 22% of the treasury, and teams and individuals who contribute to the network may receive $DIMO in the form of bounties or grants;

•The team accounts for 22%, and the token allocation will be locked for two years and then unlocked linearly every month until all are unlocked after three years;

•Investors account for 8%, and the token allocation will be locked for two years and then unlocked linearly every month until all are unlocked after three years;

•Airdrops account for 7%;

Currently DIMO has the following four main functions:

1.Reward distribution: Users can obtain DIMO tokens in two ways.

Baseline issuance reward: As long as the user is in the product link state, even if the end customer does not use the corresponding data, he can also receive DIMO token rewards.

The number of DIMO tokens distributed will gradually increase every week. The efficiency of user points acquisition depends on the user’s account level, and the latter depends on the time the user enters the Dimo ​​ecosystem. In other words, users who enter early will receive more tokens every week as the number and level of token distribution increases.

Market Issuance Rewards: When users transact with authorized DIMO applications, they receive additional DIMO tokens. As long as rewards are issued in the form of DIMO, the amount and terms of the rewards would be specified by the application developer.

2.Transaction needs: Token holders can buy and sell vehicle data through $DIMO coins, and can also purchase Dimo AutoPi to connected to devices.

3.Governance rights: $DIMO token holders can vote on how the protocol operates, including not just to software code upgrades, protocols and standards, but how fees are generated, how rewards are distributed, etc.

4.Demonstrate community affiliation: Token holders gain access to special application features and activities.

Currently, a total of nearly 28,000 vehicles are linked to the Dimo network, and users have driven more than 153 million kilometers. A total of 71 brands of cars are connected to Dimo, with Tesla, Ford and BMW making to the top three.

In total, more than 57 million $DIMO tokens have been distributed to users over last year, which worth approximately $13 million. If the estimated valuations of every vehicle on the network were added up, the total would be over $750 million.

Atlas Navi

Atlas Navi is the first Drive to Earn navigation app to use artificial intelligence. Smartphone cameras can avoid traffic jams by detecting road conditions (closures, roadworks, potholes), accidents, traffic in each lane, available parking spaces, police cars and drivers rerouting to avoid problematic roads. It obtains licensed 3D NFT vehicles as representations of drivers and rewards those who provide camera data (optional) for every mile driven.

Atlas Navi token economics consists of three parts:

1.Vehicle NFT: Similar to Stepn’s running shoes (which have water tanks, fuel and other consumption elements), only users who hold NFT can earn MILE through Atlas Navi products and convert them to NAVI.

2.MILE: Point-like token, used to record users’ driving mileage when using products, and MILE can be exchanged for NAVI by owning NFT.

Users can also hold different vehicle NFTs to perform “Drive to earn” behaviors.

3.NAVI is the native token of the Atlas Navi ecosystem, used for user Drive to Earn rewards and payment for official NFT and service subscriptions.

The total supply of NAVI tokens is 300 million, including:

•User incentive allocation 30%

•Team allocation 9%;

•The development team allocates 10%;

•The marketing department is allocated 10.67%;

•Initial liquidity allocation 13%

•The advisory team is allocated 5%.

The above three are the three DeDrive projects that are popular in the market and have good token trends at the moment. In fact, there are many DePIN products focusing on automobiles now.

For example, Moveo: Moveo focuses on Internet of Vehicles and insurance technology. Through specially designed in-vehicle hardware and patented software technology, Moveo combines vehicle data and driver data to form in-depth insights into driving safety and provide innovative services.

Or Soarchain: Soarchain is an application-based blockchain based on Cosmos, designed to provide direct and fast data transmission services between vehicles, infrastructure and networks. On Soarchain, vehicles share vehicle data with each other through cellular technology and record these data into the blockchain. At the same time, users who perform the above operations will be rewarded with Soarchain native tokens. The platform enables vehicles to anonymously and privately contribute to a network of vehicles while maximizing their benefits by using applications running on the network and receiving rewards at the same time.

In addition, there are DePIN projects focusing on car charging business, too, such as PowerPod.

PowerPod

PowerPod is a global electric vehicle (EV) charging network that aims to quickly form a network and maintain low maintenance costs through a decentralized organizational structure, GameFi, and a positive revenue model. The network is owned by individuals and communities, avoiding various problems caused by centralized management. Using blockchain technology to ensure data security and transaction transparency in the network. The latest charging technology ensures safe, efficient and high compatibility of charging and will provide a variety of personalized and intelligent services. In the future, the PowerPod network is expected to become an extension and supplement of the traditional power grid, forming a new power supply network together with the power grid.

PowerPod will produce a series of smart hardware to ensure that charging behavior is measurable, calculable, and trustworthy.

The first phase will focus on the charging gun adapter. By adding a detachable adapter to the head of a charging pile 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 stage of hardware is a “mobile charger” that allows owners to charge using a regular socket (10-16A current) in an emergency.

Token Economics:PowerPod adopts a token model similar to Hivemapper and Dimo: points + Token.

In PowerPod, PT is a point-like currency that is automatically generated based on various incentive positive behavior algorithms without a total amount online. (For example, you can get 1PT reward by charging 1 kilowatt with PowerPod smart charger.)

PPD, another token of PowerPod, is the native & governance token of the ecosystem.

The total supply of PPD is 100 million pieces, in which 12.5 million pieces will be produced in the first year. The output will be halved every four years, and:

•45% of PPD will be used to motivate positive behaviors;

•15% is allocated to developers;

•18% is allocated to investors;

•2% allocated to consultants;

•20% is allocated to the ecosystem.

In addition, the portion of PPD used for mining will be gathered into the dividend pool. The dividend pool distributes dividends every 12 hours. Distribution is based on the proportion of the number of PTs invested in the fund pool to the total number. Once PT is transferred to the dividend pool, it cannot be withdrawn, and after the dividend is distributed, the batch of PT in the pool will be destroyed.

For example, user John transfers 100 PT to the dividend pool. After the dividend period ends, there will be a total of 10,000 PT in the dividend pool. He will receive 1% of the 77 PPD accumulated in the dividend pool during that period (assuming that each dividend distribution in the first year is approximately 7706 PPD). After the allocation is completed, all 10,000 PT in the pool will be destroyed.

The difference between DeDrive and Move to Earn

Perhaps looking at it, the DeDrive concept project is similar to the Move To Earn project represented by STEPN in terms of token output. But in fact there are essential differences between the two. Although the two have similar functions in expanding the concept of Web3: in a more understandable way, through behavioral incentives, the trend of Web3 can be penetrated outwards. However, the X To Earn project dominated by Stepn is driven more by token economics. The essence of outward expansion is to maintain the life of the Ponzi system by absorbing more potential users. The DeDrive project relies on entities, which are essentially technology companies’ recognition of blockchain technology and decentralized governance ideas.

We have seen that almost all of the above cases are based on real income. As a tool to drive the flywheel, token economics is organically integrated with the inherent system of the product.

We can understand it this way. If the X to Earn project represented by STEPN interprets and verifies the paradigm of human behavior obtaining benefits on the chain and verifying it, then the DeDrive concept represented by Hivemaper completes the bonding between reality and the on-chain world from the user level. The coupling between world entities and the world on the chain. The former affects the economic base from top to bottom, while the latter builds the foundation for the superstructure from bottom to top.

in conclusion

The automotive DePIN or DeDrive project is further deepening the connection between the traditional world and the Web3 world. For example, Dimo founder Andy C explained the idea of creating a DMV based on its own network and putting vehicle ownership on the 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 every contributor to the DePIN ecosystem should be more valuable analyzed and used, and exert greater value.

In the future, the DePIN paradigm represented by automobiles will be further extended to related fields (this is more influential than mobile phone DePIN), such as the vehicle insurance market, second-hand car market, parts repairing, road construction, and car rental, etc. By then, the real world will be integrated with Web3, and the Mass adoption that Web3 has been pursuing will also come into shape.

We have every reason to be optimistic about DePIN’s prospects, but before the DePIN era truly arrives, DeDrive may be the first to launch and become one of the most popular targets in the market.

references

1.https://www.who.int/zh/news/item/13-12-2023-despite-notable-progress-road-safety-remains-urgent-global-issue

2.https://xyz-research.com/uploads/20230112/7993cd36ef18688bd0b613b494e91526.pdf

3.https://solana.com/news/case-study-hivemapper

4.https://globalcoinresearch.com/2022/10/17/hivemapper-the-google-maps-killer/

5.https://docs.dimo.zone/overview/dimotoken/token-details-and-distribution

6.https://www.theblockbeats.info/news/48908?search=1

7.https://powerpod.gitbook.io/en/introduction/smart-hardware

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