Introduction: The Problem PinLink Is Solving

Delivering The First RWA-Tokenized DePIN Protocol, Driving Down Cost For AI Developers & Creating New Revenue Streams For DePIN Asset Owners

DePINs (Decentralized Physical Infrastructure Networks) hold the promise of completely revolutionizing how AI developers source their physical infrastructure. DePINs work by using token rewards to incentivize owners of physical infrastructure assets to connect their devices to decentralized networks where they can be rented by end users in need of those services. Whether its GPUs, TPUs, CPUs or cloud storage capacity, AI developers have multiple needs that can be met by DePINs, which offer the promise of a more cost-effective and decentralized solution.

The problem faced by current DePINs however is that whilst they have delivered on the benefit of deeper decentralization, they have failed to deliver on the promise of significant cost savings. The lack of greater capital efficiency vs centralized models has led to limited adoption in the AI market.

PinLink solves this problem by creating the first RWA-Tokenized DePIN protocol, driving down cost for AI developers and creating new revenue streams for DePIN asset owners. Existing DePINs simply reward owners of DePIN assets via a share of the payments made by AI developers to rent the capacity of their asset. By contrast, PinLink’s RWA-tokenized model creates a new incentivization structure drawn from the world of on-chain Real World Asset (RWA) trading. As well as renting their DePIN capacity to AI developers, DePIN asset owners on PinLink can also mint an RWA ERC-1155 that represents the asset itself. Fractional shares of the ERC-1155 tokens can then be sold to 3rd-party passive-income seekers who want to earn a share of the asset’s revenue stream.

As the first RWA-tokenized DePIN protocol, PinLink delivers unique financial benefits to every stakeholder in the DePIN value chain, including: Benefits To DePIN Asset Owners: Owners of DePIN assets such as GPUs/CPUs/TPUs and cloud storage capacity now have greater flexibility in how they monetize their assets. Those seeking immediate up-front capital injections can focus on selling fractions of their RWA ERC-1155 tokens to passive income-seeking 3rd-parties. Those focused on more gradual long-term revenues can maintain ownership of the ERC-1155 tokens to maximize rental income. Those who want a mix of two can sell some fractions of the RWA ERC-1155 tokens and maintain ownership of others. This model allows DePIN asset owners to achieve a much more flexible range of financial goals and also leads to greater retention as the protocol can adapt to their dynamic financial needs as they evolve.

Benefits To AI Developers: Whereas capital only flows into regular AI DePINs via rental payments from the AI developers, PinLink has two-sources of capital inflow: DePIN rental payments by AI developers and RWA ERC-1155 token purchases by passive income seekers. This provides an opportunity for PinLink to reduce the capital burden on the AI developers. A commission on all RWA ERC-1155 token sales is taken by PinLink, which is put in a Service User Rebate Fund. The Service User Rebate Fund is deployed in low-risk yield-bearing activities and the yields from the fund are used to provide rebates to the AI developers who rent DePIN asset capacity on PinLink, thereby reducing their cost burden. Finally, PinLink’s asset-vetting process and initial focus on protocol-owned DePIN assets will allow it to deliver the enterprise-grade, scalable specifications required by AI developers that current DePIN marketplaces fail to offer.

Benefits To 3rd Party Passive Income-Seekers: People who don’t own DePIN assets can purchase fractionalized shares of PinLink users’ DePIN assets to earn a portion of the rental income generated by the asset. This can be particularly attractive to DeFi farmers/yield seekers seeking to diversify their strategy to include RWAs. By opening up the world of DePIN earning to those who don’t own DePIN assets, PinLink creates greater decentralization and introduces a new source of capital into the DePIN ecosystem.

Benefits To PinLink: Because PinLink earns protocol fees on both rental payments and RWA ERC-1155 purchases on the protocol, it has a wider range of income sources compared with current DePIN models. Additionally, PinLink will pursue a policy of operating protocol-owned DePIN assets. In cases where PinLink owns the DePIN asset being rented out, it will prioritize selling fractional shares of the associated RWA ERC-1155 over maintaining a share of the long-term rental income. This will generate the upfront capital required to purchase more DePIN assets, creating an asset expansion flywheel.

The benefits of PinLInk's innovative RWA-tokenized DePIN model are combined with our unique PinAI performance optimization suite, which deploys machine-learning tools to deliver enterprise-grade performance for all DePIN assets on PinLink.

The initial target market for PinLink will be GPU/CPU/TPU and cloud storage capacity for AI developers. However, once this use case has been proven out, it will be expanded to cater to blockchain miners and dApp developers as well. Ultimately, the aim of PinLink will be to roll out its RWA-tokenized DePIN model to all industry verticals in need of physical infrastructure services, ranging from decentralized sensors for IOT applications, to wireless network capacity for consumers, and beyond.

Welcome to the RWA-tokenized future of DePIN – welcome to PinLink.