Western Protocols, Eastern Manufacturing: Exploring DePIN and Its Underlying Industrial Chain
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Western Protocols, Eastern Manufacturing: Exploring DePIN and Its Underlying Industrial Chain
Western protocols, perhaps, cannot do without Eastern manufacturing behind the scenes.
Navigating Web3 tides with focused insightsWhile the Meme craze has temporarily subsided, DePIN projects within the Solana ecosystem continue to grow quietly.
However, upon closer inspection of these projects, we uncover a phenomenon you may not have noticed:
Although core protocols and initiatives are largely led by teams from Europe and America, their development—especially in hardware production and node distribution—is deeply intertwined with Asia.
Western protocols may rely more on Eastern manufacturing than you realize.
To what extent does the entire DePIN sector depend on Asia’s industrial supply chain? And how indispensable is the Asian market?
To explore these questions, TechFlow conducted an in-depth dialogue with three DePIN project founders:
Laser, Co-founder of StarPower;
James, Co-founder of Jambo;
Edison, Co-founder of CUDIS.
In our conversation, we discussed supply chains, Asian markets and demand dynamics, as well as the relationship between DePIN, Memes, and Trump's policy agenda. Below is the edited transcript of our discussion; the podcast audio version is also available:
Xiaoyuzhou Link:
https://www.xiaoyuzhoufm.com/episodes/67c31eccb0167b8db9d306b6
Spotify Link:
https://open.spotify.com/episode/3wRdDh1k2GcxHJnYPJq9gG?si=3WcJz90GRJq5LsP3AsJ07g
Background and Project Introductions
TechFlow: Let’s begin with brief self-introductions and updates about your current projects.
Laser:
Hello everyone, I’m one of the co-founders of StarPower. I entered the blockchain space in 2015, working at Wanxiang and HashKey as assistant to Mr. Feng Xiao. In 2021, I decided to start my own venture because I wanted to build something meaningful for the real world, which led me firmly toward the DePIN direction.
StarPower has secured two rounds of funding from institutions including Alliance DAO, Framework Ventures, and Solana Ventures. We were part of the same cohort at Alliance DAO as Pump.Fun and MoonShot. We might also be the only Energy-focused DePIN project that Solana Ventures has invested in.
James:
Hi everyone, I’m James, co-founder of Jambo. I’m Chinese but grew up in Africa.
Jambo was founded in 2021 to address financial pain points in regions like Latin America, Africa, and Southeast Asia. Since users in these areas skipped the PC era and went straight into mobile internet, we built our products and services around mobile devices. Our first product is a Web3 smartphone priced at $99. Last year, we sold over 800,000 units across more than 100 countries.
Edison:
Hi all, I’m Edison, co-founder of CUDIS.
CUDIS was founded in 2023, stemming from reflections during my earlier days in investment: if blockchain allows us true ownership of assets, could it also enable individuals to own and control their health data?
We believe health data should belong to users—and anyone wanting access must pay them for it. Guided by this principle, we launched the first and second generations of the CUDIS smart ring, securing a $5 million seed round led by Draper Associates.
Supply Side: Western Protocols, Eastern Manufacturing
TechFlow: DePIN protocols are predominantly led by Western teams, yet little attention is paid to the hardware manufacturing and supply chains behind them.
Given China and Asia’s leadership in smart device manufacturing, do you—being Asia-based teams—largely rely on Asian supply chains? What do your production processes and sales models look like?
Laser:
StarPower’s core goal is to create a globally interconnected platform for energy equipment. So rather than focusing on who manufactures a specific product, we focus on integrating with various energy hardware manufacturers as a protocol layer. Currently, China accounts for about 80% of global capacity and market share in new energy—this gives us a significant advantage. We don’t directly produce devices; instead, we concentrate on integration and collaboration at the protocol level.
Over the past three months, we’ve focused on promoting compatible energy storage batteries for both residential and commercial-industrial use cases. Through partnerships, our solutions have successfully entered markets in Australia and Europe. We offer additional token incentives to buyers of these batteries, aiming to attract users who genuinely need battery or solar power solutions, enabling them to earn extra rewards while meeting their primary needs. Additionally, we’re developing tailored solutions for commercial and industrial energy storage—for example, we’re currently collaborating with Deepseek Campus in Hangzhou to provide integrated energy storage infrastructure.
Notably, both Trump and Vice President Vance recently emphasized that AI development depends heavily on energy infrastructure. We believe energy is a foundational element—whether in China or the West. Only after strengthening energy systems can we support further growth in AI.
James:
If you check CoinMarketCap’s list of top DePIN projects, you’ll notice an interesting trend: among the top ten—or even top twenty—projects, over 90% of teams and founders come from Western countries. Yet nearly all of them depend almost entirely on Asian supply chains.
Jambo operates differently from many other DePIN projects. Most hardware-linked DePIN ventures require six to twelve months of pre-sales fundraising before sourcing manufacturers and shipping products. In contrast, we’ve achieved mass production runs of hundreds of thousands—even approaching millions—of phones, thanks to leveraging our Chinese team’s strengths. We’ve established partnerships with three outstanding suppliers in Shenzhen and Dongguan, ensuring efficient hardware production and stable component supply. Teams without access to Chinese supply chains likely face greater challenges, relying on intermediaries to bridge gaps.
That said, the essence of DePIN lies in decentralizing physical infrastructure networks. Without actual physical infrastructure, there’s no real DePIN project. While most such projects today are concentrated in the U.S. (e.g., Hive Mapper, Helium, Akash Network), few comparable efforts exist elsewhere. However, we’re now seeing Asian teams rise as the second wave of global players in the DePIN space. Moreover, Asia’s supply chain dominance ensures reliable hardware production and delivery—an absolutely critical advantage.
TechFlow: Regarding Jambo’s phone, how do you view components like SIM cards and Wi-Fi modules in relation to your product?
James:
That’s a great question. Truthfully, whether it’s phones, rings, or other devices, using hardware as a go-to-market strategy is quite unconventional. Typically, VCs prefer software investments because software scales better—a much more rational choice across standard investment metrics.
But I see hardware offering a strong “moat” (Margin of Safety) when scaling, and it’s also a key success factor: hardware value amplifies through network effects. The real question is what value hardware delivers to users—how much money they can earn, or how many community connections they can make. That’s what matters most. Take Jambo, for instance—I think this also answers the follow-up point—our biggest goal this year, announced at TGE, is launching our own satellite into space. Why? To enable seamless connectivity for users worldwide. One of crypto’s biggest bottlenecks is accessibility and user onboarding experience, and hardware can directly solve that.
When you own the hardware, all user data resides within your system, allowing you to deliver enhanced value-added services. Just like WeChat evolved from an instant messaging tool into a full-fledged ecosystem. In China, you can get credit loans via WeChat; in the U.S., banks or fintech startups offer financing. But in regions lacking robust KYC frameworks—like Africa, Latin America, and parts of Southeast Asia—a phone number effectively serves as identity verification and credit history. For many users, the Jambo phone may be their first-ever credit base. By collecting relevant data through hardware, we help onboard them into broader financial ecosystems—a massive strategic advantage.
So the form factor doesn’t have to be a phone—it could be any device. We chose the phone because it aligns best with our market strategy. As for SIM cards, our goal is to eliminate reliance on traditional SIMs by end of year. Then, every device will connect directly to the network via our satellite.
TechFlow: Thank you. Now let’s shift to wearable devices. What perspectives or experiences can you share regarding wearables?
Edison:
I fully agree with James—hardware creates a powerful "moat." Software can easily replicate single-point features, but sustaining long-term competitiveness is difficult.
For example, mainstream companies may stop providing access to health data once users gain ownership rights—this is where hardware becomes essential. While hardware adoption may grow gradually, we expect exponential growth once market inflection hits. This also tests our ability to manage complex supply chains.
Though the concept of DePIN originated in the West, projects like Helium and HiveMapper actively seek partnerships with Eastern hardware manufacturers and supply chains.
Take CUDIS: we didn’t target the Asia-Pacific region initially, yet soon attracted large numbers of buyers from Japan, South Korea, and beyond. Over time, we realized that Asia holds the strongest purchasing power in the crypto industry. As our project grows, attention and traffic flow in from around the world. The DePIN space offers a unique bridge connecting East and West. Previously, there wasn’t a smooth channel to capture cross-cultural interest—but this emerging sector fills that gap.
TechFlow: Your comments highlight a crucial point—Asia, especially China, plays a pivotal role in DePIN hardware production and supply. StarPower’s Starplug sells for ~$109, CUDIS’ smart ring at $349, and Jambo’s phone at $99. Has the Asian supply chain significantly reduced your hardware costs? I'm curious about your cost structures and profit margins.
Laser:
Clearly, manufacturing in Asia offers the lowest global cost base.
Currently, StarPower’s hardware costs are below 50%. When I heard last year that Jambo priced its phone at just $99, I was shocked—that reflects incredible strength in supply chain and cost management.
Our situation differs slightly. Before TGE, we primarily targeted Web3 users, so early hardware designs and pricing included stronger financial return attributes. Beyond functionality, we offered high mining incentives.
As the project evolves, our positioning shifts. As a protocol layer, we’ll gradually reduce direct involvement in hardware production, focusing instead on protocol development and ecosystem expansion—not launching more StarPower-branded hardware.
Future hardware may come from OEMs like BYD or沃泰 (Note: retain original name if brand-specific), but they’ll support the StarPower protocol—similar to Helium’s model.
We aim to lower hardware costs and expand protocol reach through third-party manufacturer collaborations.
James:
Cost is always central. Jambo doesn’t profit from hardware sales—we operate at break-even because our priority now is user distribution. That’s why our first-gen phone was priced at $99, and despite tripling performance, the second-gen remains at $99.
Compare this with others: Solana’s Saga phone first gen cost ~$1,000, then dropped to $500 when shifting production to China. This shows Western companies increasingly recognize Asia’s importance in cost reduction.
But Asia’s supply chain isn’t simply plug-and-play. Supplier relationships aren’t built through Zoom calls alone.
To truly establish trust, you must visit factories in person and engage directly with key supply chain leaders. Many Asian factory heads aren’t familiar with Web2 or Web3 concepts—they operate in what I’d call “Web0” mindset.
Negotiations demand immense time and effort. For Jambo, convincing three suppliers to invest in us while we made counter-investments and built solid partnerships was a complex, non-standard process. It’s not off-the-shelf—it had to be built from scratch.
This cultural gap may explain why Western companies progress slowly when tapping into Asian supply chains. Still, Asia’s advantages in cost and efficiency are undeniable.
Edison:
The initial $349 price point for CUDIS was carefully considered.
Early on, we bootstrapped the company ourselves—I personally invested heavily. We needed to ensure the business could survive without external funding. In short, our model must generate profits so users can trust future product and service offerings.
China’s supply chain offers more than low cost—it enables higher quality at equivalent price points.
Hardware development isn’t instant. Today’s landscape is vastly different from five to ten years ago. Back then, white-labeling allowed quick launches. Now, patents, design, molds, and IP matter. Each brand and manufacturer has proprietary tech stacks. Over the past two years, we’ve invested heavily in building our own integrated supply chain system, creating competitive barriers hard to replicate.
Another advantage of China’s supply chain is diversity—brands can choose to develop premium, mid-tier, or mass-market products based on positioning, with corresponding support. Elsewhere, options are severely limited. In fact, nearly all global wearable tech supply chains are now based in China. India has some manufacturers, but output is small and cannot meet large-scale demands. If you want to produce a million units, you still need China’s supply chain for scale.
Long term, China’s cluster effect gives it clear advantages in hardware R&D and production. Whether chip design or process innovation, the ecosystem continuously drives iteration. Other regions lack this density—supply chains struggle to sustain without enough clients, limiting new product and technology support. Therefore, I believe consumer electronics hardware production and R&D will remain centered in China for the next 5–10 years.
TechFlow: There’s a competitor to CUDIS—Pulse—whose team is mainly Indian, but the Indian founder lives permanently in Shenzhen to stay close to local factories.
Edison:
Exactly. Many brands must locate near supply chains to succeed in product development. We have team members based in Shenzhen, visiting factories daily to track new product timelines.
This proximity is essential—only by being close can you understand which products are competitive and which ones win market approval.
Especially for us, if the product lacks competitiveness, users won’t buy it. Even with heavy marketing spend, poor products fail to deliver lasting value. Product competitiveness remains the core metric.
Demand Side: Asia as a Natural Testing Ground
TechFlow: Asian users exhibit unique behaviors—such as enjoying “airdrop farming” and launchpad participation. In the DePIN space, what user traits have you observed? Which Asian countries show stronger product traction?
Laser:
This largely depends on the target audience.
Prior to TGE, StarPower’s users were mostly Web3 natives. Their needs are straightforward—they want early participation and proportional returns via mechanisms like mining.
Post-TGE, especially after linking with Web2 renewable energy manufacturers, our user base will gradually extend to Web2 audiences.
Demographically, users from the U.S. and Europe each account for roughly one-third, with Asian users concentrated in East Asia making up another third. Korean users are particularly numerous, representing about a quarter. The remainder comes from Southeast Asia, India, and Australia. Currently, most users are from Web3, though a small number of Web2 users purchase our products—their volume remains limited.
James:
For Jambo, our market splits into three main regions: Americas (~40%), Southeast Asia and broader Asia (~35%), and Africa (~25%). Within Asia, key markets include Thailand, Philippines, and Indonesia. Tier-1 markets are Korea, Japan, and China, in that order.
On user behavior, one major critique of DePIN is actual usage rates. For instance, I know a few people running Helium nodes, but I don’t know anyone actually using the network. This isn’t a dig at Helium—it’s an industry-wide issue.
One strength of Asian markets is their high population density and activity levels. GameFi’s explosive growth in 2021 demonstrated this clearly. Asian users often adopt new concepts and technologies faster than their U.S. counterparts—an inherent competitive edge.
Still, for genuine node operation and real network usage, emerging markets may become key growth drivers. Here, $1 carries far more weight than in developed nations. With sound tokenomics that incentivize both node operators and end-users, decentralized networks become far more attractive.
Edison:
We didn’t initially grasp the importance of the Asian market due to the stereotype that Western users care more about health and fitness.
Yet market performance shows Asian users are equally passionate. We’ve benefited indirectly from projects like StepN, which educated many users in Asia. Similarly, Western projects like Sweatcoin helped build awareness around movement and health in previous cycles.
Our key target markets include the U.S., South Korea, Japan, Singapore, and the UK. Three of these five are in Asia. That’s why since late last year, we’ve intensified marketing and community activities across Asia.
After the WebX event in Japan, we hosted a dedicated meetup with over 100 local users. Since most spoke only Japanese, we provided translators. The event revealed the high engagement level of Asian users. Earlier Twitter “Social Challenge” campaigns also showcased strong enthusiasm.
Importantly, these users aren’t just “farmers.” That’s a fascinating observation.
Overall, Asian users fall into two categories: low-frequency participants who engage in farming, and those with strong willingness and ability to pay.
If a product delivers tangible value, they’re willing to pay. This insight guides our strategy in Asia moving forward.
TechFlow: You mentioned a marketing event in Japan attracting many non-Web3-native users. Given Japan’s relatively closed market, is Web3 awareness costly? How do you explain crypto and token incentives to someone unfamiliar with Web3 so they’ll buy your product?
Edison:
Actually, we didn’t actively promote in Japan initially—it emerged organically through influential KOLs who discovered our product and shared it on social media.
We also had a referral program: users who bought a ring could invite others and earn rewards. This drew in non-crypto users.
Their understanding is simple: wear the ring, earn rewards, improve health. So communication focuses on practical benefits, minimizing Web3 jargon. For example, explaining how data is recorded, why it belongs to the user, and its potential future value. Hardware makes this intuitive—users feel the benefit firsthand.
Later, users may ask deeper questions—how the ring integrates with the app, or where rewards come from. Then we explain the reward mechanism and logic. Compared to the high friction of explaining Bitcoin, Ethereum, or Solana years ago, having a physical product drastically lowers the learning curve.
TechFlow: You noted hardware appeals intuitively to outsiders, yet insiders seem obsessed with Memes. DePIN hasn’t generated similar excitement. Amid today’s Meme-driven frenzy, how do you see DePIN’s future? Is there pressure from Memes capturing traffic and capital?
Laser:
This current Meme wave reminds me of the NFT boom, or even earlier ICO mania.
Each cycle differs in form, but similar patterns recur. Personally, while DePIN hasn’t gone “viral” globally, it’s become a mainstream topic in Western discourse.
DePIN stands out by delivering real-world utility and long-term potential. Memes may attract tens of thousands daily, but that热度 is fleeting.
In fact, this Meme surge echoes our experience at Alliance incubation last year. At the time, Alliance invested in Pump.Fun before Meme projects gained traction—a contrarian bet. Both investors and builders seeking real opportunity must dare to take non-consensus paths.
So I believe DePIN projects—ours and others—are building real societal value. Though progress takes time, I expect 2025 to be a pivotal year for DePIN. It’s only a matter of time.
James:
I fully agree with Laser. Every trend has its narrative, but differences exist.
About Memes: what exactly is a Meme coin? Even Donald Trump—“the most powerful man in the free world”—launched his own Meme coin. This shows anyone can issue a token as a market entry strategy. Whether it’s the U.S. president or an unfunded startup, fair launches allow anyone to kickstart a token.
What about DePIN? It uses token fractionalization to reward diverse ecosystem participants—nodes, users, developers. This contrasts sharply with the simplicity of Meme coins.
The rise of Meme coins has drawn liquidity and attention—no other trend (AI Agents, DeFAI, etc.) matches it now. But from another angle, it inspires new entrepreneurs: they realize tokens themselves can serve as go-to-market strategies, beyond traditional hardware or software approaches.
So I anticipate exciting new DePIN startups emerging, borrowing this token-first launch method. I’m optimistic about DePIN’s future evolution.
Edison:
The current Meme wave poses no threat to us.
Every industry has cycles, and Memes are just one big wave within it—how long it lasts, we don’t know. OpenSea, once extremely profitable, no longer shines as before. We’re somewhat lucky to have chosen Solana as a core ecosystem—it aligned us with momentum.
In terms of virality, tokens spread faster than software, and software spreads faster than hardware.
As a hardware company, our growth is naturally slower. But once we launch our own token, everything围绕that token will scale more easily to wider audiences.
We don’t deny Meme trends. From late last year to now, we’ve seen reduced communication costs. More people understand crypto, find it intriguing, and are open to trying new things—this isn’t a threat, it’s an opportunity. Not that we’ll chase trends, but by staying focused and doing our work well, we position ourselves advantageously for the next wave.
TechFlow: While you’re not focused on Meme Coins, could you use them as a marketing tactic? For example, combining DePIN with Meme Coins—launching a Meme Coin tied to your DePIN device—to promote your product and ecosystem?
Laser:
Yes, admittedly, our project is somewhat complex. Let me clarify our logic: renewable sources like wind and solar introduce grid instability. Solar generation peaks during the day, possibly exceeding local demand, then drops to zero at night—creating major fluctuations, a top challenge for global grids today.
Meanwhile, recent advances in AI and computing ultimately boil down to rising electricity demand. Both supply and demand sides stress the grid. This creates a market need: how can virtual power plants perform load balancing? Essentially, act like a reservoir—store excess power during low-demand periods and discharge it during peak hours. Sounds simple, but execution is tough—that’s where Web3 comes in.
But if we explain all this complexity upfront, users will walk away.
So we simplify from a product standpoint: this outlet saves you electricity, this battery stores surplus power—simple and direct. Ultimately, success requires reaching Web2 and mainstream audiences. Like Jambo targeting mostly Web2 users in Latin America and Africa.
James:
As Laser mentioned, it’s true. Explaining technical details like “we optimize workflows” causes immediate disengagement.
Psychologically, learning requires admitting ignorance—but most people avoid acknowledging knowledge gaps in conversation. This mental barrier makes promoting complex tech extremely difficult.
Additionally, CUDIS’s approach in Japan—leveraging KOLs—is highly effective. Distribution effects can be amplified through token airdrops, trading competitions, or raffles. Fun activities draw users into the system, with rewards boosting retention.
Successful Web3 marketing requires three elements:
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Deliver a clear, compelling core message—what your product is and what problem it solves;
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Use incentive mechanisms (rewards, airdrops) to attract users;
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Build trust and anticipation. This not only attracts users but keeps them engaged as active ecosystem participants.
Edison:
CUDIS maintains an open stance here: we won’t specifically build a “Meme Coin,” but we’ve collaborated with several Meme Coin projects. Partnering with Meme communities generates engaging events and content. Whether organizing joint campaigns or offering support, we’re happy to participate. Our ultimate goal is user-centric—helping solve real-life problems.
In positioning, Meme Coins focus on culture, attention, and engagement, while we prioritize solving practical user needs. These goals aren’t conflicting—in fact, synergy here is highly efficient.
TechFlow: Earlier you mentioned Trump’s policies—could they bring more opportunities for DePIN? Will future supportive policies further accelerate the sector?
Edison:
Overall, this is definitely a positive signal. A U.S. president issuing a cryptocurrency is powerful global publicity. Looking closely at Trump and VP Vance’s policy directions over the past year, several areas align closely with ours: cryptocurrency, artificial intelligence, and energy. These are logically connected—especially AI and energy, frequently discussed together.
A key issue in the U.S. is aging grid infrastructure, while rapid AI growth drives soaring electricity demand. This creates tension: maintaining AI leadership requires fixing energy infrastructure. For example, Trump’s recent “Stargate” initiative includes plans to build new power stations and storage facilities in Texas to support AI and other energy-intensive technologies.
Thus, I see Trump’s policies as a significant boost for DePIN. The spotlight on AI and energy reduces our “education cost” with VCs—we no longer need to spend time explaining relevance. They now proactively reach out to us.
James:
I believe Trump’s policy impact is enormous—not just for DePIN, but across crypto and even tech stocks. For instance, when Trump launched “Trump Coin” on January 15th, liquidity shocks affected every project regardless of niche.
Hence, we must closely monitor future policy moves—will they attract major corporations deeper into crypto? Regardless of bull or bear markets, founders should keep building. If macro conditions align, even more opportunities will emerge.
Edison:
A sitting president issuing a coin sets a powerful precedent: as long as it’s compliant and lawful, anyone can launch their own cryptocurrency. Symbolically, this draws more people unfamiliar with crypto into the space.
Under this influence, we’ll benefit from increased traffic, attention, and potential purchasing power brought by newcomers. Some will stay, others leave—but overall, the crypto community grows larger and the ecosystem richer.
As for long-term policy—say four or five years out, with geopolitical shifts or leadership changes—we can’t predict precisely. But currently, though regulations for crypto consumers and decentralized products (like DePIN) aren’t fully formed, the general trend is becoming more favorable.
TechFlow: As Meme hype cools, more users are turning to fundamentally strong projects—AI and DePIN being prime examples. We believe DePIN remains highly值得关注 in 2025, with more quality projects gaining visibility.
Due to time constraints, we’ll conclude today’s discussion. We sincerely thank the three founders for sharing your insights on the赛道, supply chains, and market trends. See you on the next episode of our podcast.
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