Decentralized Physical Infrastructure Networks—commonly known as DePIN—are redefining how real-world infrastructure is built, maintained, and monetized using blockchain technology. By incentivizing individuals to contribute physical resources like data, storage, or network coverage, DePIN projects bridge Web3 innovation with tangible, everyday services.
This article explores the core concept of DePIN, examines leading projects such as Hivemapper, Filecoin, Helium, and PicTrée, and discusses key considerations for participants—especially under Japanese regulatory frameworks.
What Is DePIN?
DePIN, short for Decentralized Physical Infrastructure Network, refers to blockchain-based ecosystems that bootstrap physical-world networks through token incentives. These networks rely on contributions from decentralized users—such as driving a car, sharing unused storage space, or setting up wireless hotspots—and reward them with crypto tokens.
Think of traditional platforms like Uber or Airbnb: they function on physical assets (cars and homes) contributed by users. DePIN applies a similar model but replaces centralized intermediaries with decentralized protocols and crypto rewards.
DePIN enables anyone to become an infrastructure provider—turning everyday actions into economic opportunities through Web3.
These projects aim to create more efficient, transparent, and community-driven alternatives to traditional infrastructure models, often leveraging blockchain’s transparency and smart contract automation.
Core DePIN Categories
DePIN projects can be broadly grouped into three models:
- Data Contribution Networks
Users collect and share real-world data (e.g., images, GPS, sensor readings) in exchange for tokens.
Examples: Hivemapper, PicTrée - Resource Sharing Networks
Users share existing hardware resources like storage or computing power.
Examples: Filecoin, Arweave, Render Network - Device-Based Networks
Users purchase and deploy specialized hardware to expand network coverage or precision.
Examples: Helium Hotspot, GEODNET
Each model leverages token economics to bootstrap participation, scale rapidly, and align incentives across users, developers, and operators.
👉 Discover how blockchain is transforming real-world infrastructure—explore the future of DePIN today.
Leading DePIN Projects in Action
Hivemapper: Crowdsourced Street-Level Mapping
Hivemapper is building a decentralized alternative to Google Street View by incentivizing drivers to capture street imagery.
- Users install a dashcam device in their vehicles.
- While driving during daylight hours, the camera captures geotagged video.
- This data is uploaded to the network and used to generate up-to-date maps.
- Contributors earn HONEY tokens (built on Solana) based on data quality and coverage.
Additionally, users can participate as AI Trainers, validating map data through quizzes and earning extra HONEY tokens. Businesses can then license the map data by paying in HONEY tokens.
This model allows rapid global map updates without relying on a single corporate entity—making it faster, cheaper, and more resilient than traditional mapping solutions.
Filecoin: Decentralized Cloud Storage
Filecoin is one of the most established DePIN projects, offering a decentralized alternative to services like Dropbox or Google Drive.
- Storage providers ("miners") offer unused hard drive space to the network.
- In return, they earn FIL tokens based on the amount and reliability of storage provided.
- Users pay in FIL to store encrypted data across a distributed network.
Key advantages:
- Data is split into fragments, encrypted, and stored across multiple nodes.
- No single point of failure or control—enhancing security and censorship resistance.
- Competitive pricing through open market dynamics among storage providers.
Since its 2020 mainnet launch, Filecoin has become a foundational layer for Web3 data storage—supporting NFTs, decentralized apps (dApps), and archival systems.
Helium: Decentralized Wireless Networks
Helium operates two major DePIN networks: Helium Hotspot for IoT devices and Helium 5G for mobile connectivity.
Helium Hotspot (LoRaWAN)
- Users buy and set up a Hotspot device at home.
- The device extends low-power, long-range wireless coverage for IoT sensors (e.g., smart meters, asset trackers).
- Operators earn HNT tokens based on network contribution (coverage and data transfer).
Helium 5G
- Uses 5G-compatible hardware to provide mobile broadband.
- Users earn MOBILE tokens for sharing cellular coverage.
- Aims to disrupt traditional telecom providers by enabling community-built networks.
While innovative, Helium faces regulatory challenges in countries like Japan due to telecom licensing requirements—highlighting the importance of legal compliance in global expansion.
PicTrée: Gamified Infrastructure Monitoring
PicTrée stands out as a Japan-focused DePIN project developed by Singapore-based Digital Entertainment Asset (DEA) in partnership with Tokyo Electric Power Company (TEPCO).
- Players use their smartphones to photograph utility poles and manholes in real life.
- The game, “PicTrée: My Pole Battle,” turns infrastructure monitoring into a team-based competition.
- Players join one of three teams (“Ampere,” “Volt,” or “Watt”) and earn points by checking in and connecting assets.
- Rewards include Amazon gift cards and DEP tokens.
This pilot program ran in Maebashi City from April to June 2025 and aimed to reduce inspection costs while improving grid safety through crowdsourced image data.
Unlike many DePIN models requiring hardware purchases, PicTrée lowers entry barriers by using existing smartphones—making it one of the most accessible DePIN experiences today.
👉 See how everyday smartphone use can power real-world infrastructure innovation.
Regulatory Considerations for DePIN in Japan
As DePIN gains traction globally, understanding local legal frameworks becomes critical—especially in regulated markets like Japan.
Here are the key laws that may apply to DePIN projects operating in or targeting Japanese users:
1. Cryptocurrency Regulations (Payment Services Act)
Under Japan’s Payment Services Act, crypto assets are defined as:
- Transferable digital value,
- Usable for payments to unspecified parties,
- Excluding fiat currencies.
Token distribution to contributors (e.g., HONEY or FIL rewards) is generally not considered a sale, so it falls outside exchange regulations. However:
- If tokens are held centrally before distribution, the operator might be deemed a crypto exchange, requiring registration.
- Listing tokens on exchanges accessible to Japanese residents triggers crypto exchange licensing requirements for the platform—not the user.
Using low-gas blockchains for frequent micro-payments helps avoid operational bottlenecks and regulatory scrutiny.
2. Unfair Competition Prevention Act (Act Against Unjustifiable Premiums and Misleading Representations)
This law limits excessive promotional gifts ("premiums") tied to product sales.
However:
- Token rewards are considered performance-based compensation, not promotional gifts.
- Since rewards depend on user contribution (e.g., driving routes or uploading data), they do not violate premium limits.
Thus, DePIN token incentives typically avoid this regulation—as long as marketing avoids framing tokens as guaranteed returns on device purchases.
3. Specified Commercial Transactions Law
This law targets exploitative sales practices where:
- Goods/services are sold,
- With promises of future income ("business opportunity" lure),
- And involve significant upfront cost.
Projects like Hivemapper, Helium, or GEODNET, which require users to buy hardware with the promise of token earnings, may fall under this category—classified as Business Opportunity Sales.
In such cases:
- Operators must provide written disclosures.
- Advertising must avoid exaggerated income claims.
- Cooling-off periods apply.
Conversely, projects using existing devices (e.g., Filecoin or PicTrée) avoid these rules entirely.
4. Radio Law (Telecommunications Regulation)
Most DePIN devices emit radio waves (Wi-Fi, LoRaWAN, 5G). In Japan:
- Use of radio-emitting devices requires technical conformity certification ("Tech-Compliance" or "技適").
- Even personal use requires compliant equipment unless exempted.
Operators should ensure devices meet standards before deployment—otherwise users risk violating national regulations unknowingly.
5. Telecommunications Business Act
Providing internet connectivity as a service—even via decentralized hotspots—may constitute a telecom business under Japanese law.
Key implications:
- Operators must register or file notifications depending on service scale.
- Rewarding users for providing public wireless access could trigger compliance obligations.
This presents a major hurdle for projects like Helium in Japan unless structured carefully through licensed partners.
6. Product Safety and Liability Laws
For projects selling hardware in Japan:
- Compliance with the Electrical Appliances and Materials Safety Law is essential.
- Consumer product safety and labeling laws also apply.
- General product liability (under the Product Liability Act) remains enforceable regardless of decentralization.
Frequently Asked Questions (FAQ)
Q1: Is participating in DePIN legal in Japan?
Yes—participation is generally legal if users comply with relevant laws (e.g., using certified devices). However, operators may face regulatory scrutiny depending on token structure and hardware sales practices.
Q2: Do I need a license to run a Helium hotspot in Japan?
Technically yes—if you're providing public wireless access for reward, it may qualify as a telecom service requiring notification or registration under the Telecommunications Business Act.
Q3: Are DePIN token rewards taxable?
Likely yes. Crypto rewards are generally treated as miscellaneous income under Japanese tax law and must be reported annually.
Q4: Can I use my phone for DePIN without buying hardware?
Yes—projects like PicTrée and some Filecoin data collection tools allow smartphone participation without new equipment purchases.
Q5: How do DePIN projects prevent fraud?
Most use cryptographic proofs (e.g., location validation, data integrity checks) and reputation systems to verify genuine contributions before rewarding users.
Q6: Are DePIN tokens good investments?
They carry high risk. Value depends on network adoption and utility—not just speculation. Always research before acquiring any token.
Final Thoughts
DePIN represents a powerful shift toward democratized infrastructure—where individuals contribute resources and are fairly rewarded via blockchain incentives. From mapping streets to securing data and expanding internet access, these networks show how Web3 can solve real-world problems.
While regulatory landscapes like Japan’s present challenges—especially around telecom rules and consumer protection—the future remains bright for compliant, user-first designs like PicTrée and Filecoin.
As innovation continues, staying informed about both technology and legal boundaries will be key for builders and participants alike.
This article does not constitute legal advice. For specific guidance, consult a qualified professional.