Investment manager Borderless Capital has introduced a game-changing $100 million fund aimed at accelerating the growth of Decentralized Physical Infrastructure Networks (DePIN). This new initiative marks the firm’s third DePIN-focused fund and brings together prominent investors, including blockchain platform Peaq, the Solana Foundation, Jump Crypto, and IoTeX.
The announcement, shared by Borderless via email on Wednesday, highlights the growing momentum behind DePIN projects. These networks, built using blockchain technology and token-based incentives, offer a decentralized alternative to traditional infrastructure. Rather than relying on centralized systems, DePIN allows projects to utilize shared infrastructure without needing to invest in their own costly equipment.
The Rise Of DePIN
DePIN, which stands for Decentralized Physical Infrastructure Networks, is transforming how businesses deploy physical infrastructure. From decentralized wireless networks to sensor-sharing platforms, DePIN leverages blockchain technology to create collaborative systems where users can earn passive income by contributing resources, such as connectivity or computing power. This model empowers individuals and businesses alike to participate in building the next-generation internet of things (IoT) without requiring extensive capital outlay.
According to Álvaro Gracia, a partner at Borderless Capital, DePIN has the potential to become the global standard for deploying physical infrastructure, coordinating human resources, and creating billions in passive income. “DePIN will provide easy access and lower costs for users while opening up significant revenue opportunities for participants,” Gracia emphasized.
One of the most well-known DePIN projects is Helium, a decentralized wireless network that incentivizes users to provide connectivity through personal hotspots. Helium’s native token, HNT, serves as a reward for users who contribute to the network. The success of Helium has paved the way for other DePIN projects to gain traction, attracting major players like the Solana Foundation and Jump Crypto.
Funding to Power DePIN Growth
Borderless Capital’s $100 million fund aims to capitalize on the surging interest in DePIN technology. By attracting key investors and backing promising projects, the fund seeks to drive innovation in areas such as decentralized wireless, sensor networks, and other IoT applications. Peaq, a blockchain platform focused on machine-to-machine (M2M) economy, is among the investors in the fund, underscoring the strategic alignment between DePIN and emerging blockchain ecosystems.
As the adoption of DePIN accelerates, the funding will provide critical support to startups and projects looking to break into the space. With more than $1 billion raised by the top 10 DePIN projects as of April 2023, according to a report by Crypto.com, the industry is poised for exponential growth. Borderless Capital’s fund is set to further fuel this expansion, helping to build the infrastructure needed for the decentralized future.
DePIN’s Potential Impact
Decentralized infrastructure offers several advantages over traditional centralized systems. By distributing the responsibility for running and maintaining equipment across a decentralized network, DePIN reduces operational costs, increases efficiency, and enhances network security. Moreover, it opens the door for new revenue streams, allowing individuals and companies to earn passive income through participation.
For consumers, DePIN networks provide cheaper and more accessible services. With projects like Helium offering low-cost connectivity and other networks exploring decentralized energy and logistics solutions, the DePIN ecosystem has the potential to disrupt industries that rely heavily on physical infrastructure.
As the sector matures, Borderless Capital’s $100 million fund will be instrumental in shaping the future of decentralized infrastructure. With backing from industry giants like the Solana Foundation and IoTeX, the DePIN model is set to become a cornerstone of the global digital economy.
The launch of Borderless Capital’s third DePIN fund marks a significant milestone for the decentralized infrastructure space. With $100 million in backing and key partnerships with blockchain leaders, the fund is positioned to drive the growth of DePIN and revolutionize how physical infrastructure is built and maintained. As more projects enter the DePIN ecosystem, the potential for innovation, lower costs, and new income opportunities will only continue to grow, solidifying DePIN’s role in shaping the future of infrastructure.
Disclaimer: The information in this article is for general purposes only and does not constitute financial advice. The author’s views are personal and may not reflect the views of Chain Affairs. Before making any investment decisions, you should always conduct your own research. Chain Affairs is not responsible for any financial losses.
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