RT Journal Article
T1 The road to decentralization: optimal coverage on Decentralized Physical Infrastructure Networks (DePIN)
A1 Soria Ruiz-Ogarrio, Jorge
A1 Moya Velasco, Jorge
A1 Estévez Mendoza, Carlos Isidoro
AB Decentralized Physical Infrastructure Networks (DePIN) represent an emerging organizational form for operating physical infrastructure through blockchain-based coordination. DePIN through decentralized protocols and token-based payment mechanisms incentivize independent agents to deploy, maintain, and monetize real-world infrastructure, such as wireless networks, storage units, or sensors. This article presents a first formal economic analysis of DePIN architectures, modelling investment decisions under network effects in a blockchain-native Decentralized Autonomous Organization (DAO), with protocol-defined reward schemes. It establishes the equilibrium conditions that support decentralized provision, where token prices internalize participation, service reliability, and network coverage. Furthermore, it identifies a minimum viable coverage threshold determined by costs and network effects. Through a multi-agent machine learning simulation, we confirm that decentralized provision improves efficiency compared to centralized models. The results support the economic viability of DePIN and provide design guidelines for future decentralized infrastructure protocols. Finally, we propose a DAO incentive mechanism to implement First Best provision in Decentralized Physical Infrastructure Networks.
PB Elsevier
SN 1544-6123
YR 2025
FD 2025
LK https://hdl.handle.net/20.500.14352/130060
UL https://hdl.handle.net/20.500.14352/130060
LA eng
NO Soria Ruiz-Ogarrio, J., Moya Velasco, J., & Estévez-Mendoza, C. (2026). The road to decentralization: Optimal coverage on decentralized physical infrastructure networks(Depin). Finance Research Letters, 90, 109115. https://doi.org/10.1016/j.frl.2025.109115
NO Ministerio de Ciencia e Innovación (España)
DS Docta Complutense
RD 20 ene 2026