One of the most common assumptions in Web3 is that tokens must be used for payments — that this is their core utility. But in the world of DePIN (Decentralized Physical Infrastructure Networks), that idea is being challenged. In fact, requiring token payments may be holding many projects back.
In his DePIN Token Economics Report, Tom Trowbridge, co-founder of Fluence and host of the DePINed podcast, lays out a compelling case for why fiat-first models are becoming the smarter choice for real adoption.
The Problem With Token-Only Payments
Historically, crypto projects have used tokens as the primary means of transaction. The logic is simple:
“If people need to use your token to pay, demand will rise and so will the token price”
But in practice, this hasn’t held up.
In most networks, users buy tokens right before they pay and service providers sell them immediately afterward. There’s no long-term alignment or incentive to hold. What results is trading volume, not sustainable demand.
For many potential users — especially non-crypto-native businesses and institutions — token payments feel like a barrier:
- They add volatility to pricing
- They complicate onboarding
- They introduce friction in enterprise planning
As Tom puts it:
“If your customers aren’t deep into crypto, making tokens mandatory for payments might push them away”
The Solution: Fiat Front-End, Token Back-End
Instead of requiring tokens upfront, many successful DePIN projects are now using a fiat front-end — with tokens operating quietly in the background.
This means:
- Customers can pay with credit cards, bank accounts, or wire transfers
- Services are priced in USD or other stable fiat currencies
- Token usage remains invisible — but still essential for powering the system under the hood
This model is already live in projects like Helium, Demo, GeoNet, and Ionet. Users pay in fiat, while the protocol handles conversion and incentives via tokens behind the scenes.
Why Fiat Pricing Matters
When services are priced in tokens, forecasting becomes a nightmare. Gas fees fluctuate. Token values rise and crash. For large customers — especially in B2B and institutional settings — this is unacceptable.
By pricing in fiat:
- Businesses can budget with confidence
- Projects can offer predictable pricing
- Adoption becomes easier across industries
And crucially, the tokenomics still function — just without confusing or intimidating the end user.
The Future of DePIN Is Invisible Tokens
The best infrastructure fades into the background and DePIN is no different.
In the most successful DePIN projects, users may not even know a token exists.
What matters is functionality, ease of use, and scalable adoption. Tokens remain important — for securing networks, rewarding participation, and driving alignment. But the front-end experience needs to feel as simple as using Stripe or AWS.
That’s how DePIN will grow beyond crypto and reshape how we interact with infrastructure altogether.
Explore the full DePIN Token Economics Report by Tom Trowbridge for insights on staking, token utility, rewards, governance and more
