SOS Submission: Strategic Objectives – Establishing a Cohesive DePIN Strategy
Summary:
This submission aims to identify and foster select Decentralized Physical Infrastructure Networks (DePIN) projects within the Arbitrum ecosystem, in order to take advantage of the network’s current market position among all L2 chains. By giving DePIN projects a home in Arbitrum and, furthermore, providing opportunities to see their tools implemented in day-to-day operations Arbitrum can gain traction in one of the key talking points in crypto over the past 2 years.
Similarly to the RWA Innnovation Grants Program from last year, consolidating DePIN as a true area of interest for Arbitrum can drive builders to create new tools or adapt existing ones for Arbitrum users.
Motivation:
- Arbitrum One continues to be seen by both veteran and novice users as a DeFi-first network.
- Throughout recent months, there has been a growing push to adopt AI and RWA initiatives, DePIN projects should not fall far from that scope.
- The ongoing Let’s get our huddles (aka. video calls) in order proposal highlights a specific use case of DePIN infrastructure that can be utilized by the Arbitrum Foundation on a regular basis.
- There are more DePIN offerings that already exist within Arbitrum’s Orbit Chain that could stand to benefit from increased interest and backing of their projects.
- DePIN apps are bound to keep growing presenting tangible integration opportunities for Arbitrum.
Current Status:
- There are already some existing DePIN applications in Arbitrum.
- There is a certain reticence among some DAO participants to embrace AI, DePIN or RWA initiatives to avoid trend chasing.
- Supporting DePIN applications falls in line with many others’ proposed SOS for Arbitrum.
However, there is no coherent approach as to how the Arbitrum Foundation can leverage any of its existing DePIN projects.
Objectives
In order to actually position Arbitrum as a verifiable L2 home for DePIN, we need to be able to point to specific success stories within its networks, especially if these can lead to real-world usage. Hence I propose these initial time frames and key objectives to start this journey:
6 months Objectives
1: Onboard existing Orbit Chain DePIN Projects
Key tasks:
- Identify all potential existing opportunities, similar to the Huddle01 Meet case, in projects or tools that are already powered by Arbitrum.
- Outline any areas of improvement on how these projects can be supported to help them grow within their current or future scope in Arbitrum.
2: Onboard initial batch of DePIN Projects
Key tasks:
- Attract and plan for deployment of at least an extra 5 DePIN projects that are not already on Arbitrum. This involves identifying promising DePIN initiatives and providing them with technical and -possibly- financial support to integrate them in the Arbitrum networks.
- Establish a dedicated support channel for DePIN developers. Starting a specialized communication channel will facilitate direct assistance, and collaboration for builders working on DePIN projects. Naturally having DePIN initiatives framed as a Strategic Objective should go a long way in boosting confidence
Year 1 Objectives:
Main Objective: Build DePIN-Focused Infrastructure that caters to the Arbitrum Foundation or Arbitrum users’ needs
Key tasks:
- Implement solutions that directly benefit Arbitrum users. Developing and deploying DePIN functionalities based on the initial onboarding process, both from existing DePIN projects or any new implementations brought from other chains.
Year 2 Objectives:
1: Evaluate market Impact of Arbitrum’s DePIN Initiatives
Key Tasks:
-
Host DePIN-specific events or grant programs to attract more builders: Organizing these type events will stimulate innovation, attract talent, and position Arbitrum as a hub for DePIN development.
-
Secure partnerships IoT hardware manufacturers for more native Arbitrum integrations. The Physical part in DePIN is key to guarantee that Arbiturm can secure a chunk of the DePIN sector. Establishing relationships and potential partnerships based on the past 2 years of testing and building is just as important as the project themselves.
2: If applicable, identify potential opportunities to enhance network capabilities for DePIN
These objectives and set of tasks are an overview that may provide path to further enable DePIN builder to flock over to Arbitrum. Outlining a more precise approach that gets u closer to these goals, within the Arbitrum community, can ensure Arbitrum gains a foothold among the wider DePIN ecosystem across all chains.
Potential pitfalls:
- Again, the physical part in DePIN poses unique regulatory challenges, especially when it comes to data privacy and infrastructure, as well as the usual concerns that affect token issuance.
- High development costs for builders.
- Potential technical challenges in integrating Arbitrum chains with IoT infrastructure, especially as use cases grow in scope and complexity.
Resources Required:
- Dedicated DePIN integration team formed by members of current teams of builders who already have experience building on top of Arbitrum.
- Marketing resources needed to promote Arbitrum’s capabilities and stronger push for DePIN among any enthusiasts and communities already building on top of these technologies.
DePIN’s alignment with the Arbitrum mission:
There is a ever-growing number of proposals and efforts to have Arbitrum expand its current scope way beyond only DeFi, mainly via gaming or more recently AI and RWA initiatives. DePIN falls perfectly in that lot, while providing Arbitrum networks more concrete use cases we can start to benefit from quite soon.
NOTES: This SOS outline is a work in progress, still subject to changes and improvements from any comments or suggestions from the forum.