Earn Money by Lending Unused Graphics Cards? Structural Transition Drives Revenue Growth, Even Participant Rewards | Seo Dong-ju, Kim Dong-hwan, Cho Dong-hyun, Undefined Labs CEO [Crypto PLUS]

Summary

Cho Dong-hyun, CEO of Undefined Labs, explains the resurgence of DePIN (Decentralized Physical Infrastructure Networks) in crypto. He argues that a new AI‑driven generation—projects that lend idle GPU/CPU compute or collect and resell data for AI training—has structurally separated from earlier failed waves by generating real revenue, paying participants in stablecoins, and using profits for token buybacks and burns. The total DePIN market cap has quadrupled, and on‑chain verified revenues are accelerating. He advises investors to focus only on these AI‑related DePIN projects and avoid old storage/IoT DePIN tokens.

• DePIN stands for Decentralized Physical Infrastructure Networks, using crowd‑sourced resources instead of centralized providers.
• First‑gen DePIN (storage like Filecoin) and second‑gen (IoT/hardware) failed due to lack of real revenue and over‑reliance on token emissions.
• A third wave of DePIN has emerged in 2025, centered on lending idle GPUs/CPUs and collecting/selling data for AI training.
• These new projects generate actual revenue: the DePIN market cap grew from under $5B to $20B, with on‑chain revenue hitting $75M in 2025 and projected $250M in 2026.
• Business model has evolved: participants are rewarded in stablecoins instead of tokens, and remaining revenue is used to buy back and burn project tokens, creating a sustainable flywheel.
• AI labs are signing long‑term contracts (e.g., Grass with a $10M deal, Kled with $12M) for compute and labeled data, providing durable demand.
• Investors should focus on AI‑related DePIN and avoid legacy first/second‑generation DePIN tokens.
• Cautionary note: some revenue numbers are self‑reported and may require third‑party verification.