In this fireside chat, Tom Trowbridge (Fluence) sits down with Guy Wuollet, partner at a16z crypto, to unpack the investment logic, technical underpinnings, and transformative potential of Decentralized Physical Infrastructure Networks (DePIN). Guy shares a16z’s approach to sectors like decentralized energy, compute infrastructure, and AI, highlighting the critical role of verification, crypto-native founders, and long-term real-world impact.
What Is DePIN, Really?
The conversation is opening by reframing DePIN with precision: the ‘P’ stands for physical, and that’s where his conviction lies. While crypto-native definitions tend to cast too wide a net (“a token that changes behavior = DePIN”), Guy emphasizes a more selective lens:
“What’s compelling to me is the idea of applying crypto incentives and decentralized coordination to atoms, not just bits.”
For him, true DePIN involves:
- Physical infrastructure (telecom, energy, transportation)
- Useful services (compute, storage, mobility, etc.)
- Crypto-economic incentives for decentralized coordination
- Verifiable service delivery without relying on classical consensus or ZK proofs
If a system needs an oracle to verify a physical event, it’s probably DePIN.
The Solution: A Mobile-Based DePIN Energy Network (Daylight)
Guy shares why a16z backed Daylight, a startup aggregating energy grid data from distributed edge devices. Instead of outdated infrastructure (like meter readings by trucks), Daylight provides real-time, decentralized insights to utilities. Over time, it could unlock:
- Real-time monitoring of home batteries and solar panels
- Grid balancing through edge capacity during peak demand
- Monetization of underutilized household energy assets
Guy calls this emerging sector dGen (Decentralized Generative Energy Networks), where decentralization improves access, economics, and resilience.
“There are 30–35 serious teams in decentralized energy. Daylight stood out not just for the tech, but the founder’s clarity and long-term vision.”
What a16z Looks for in DePIN Founders
The bar is high. The ideal founder is bilingual in:
- Deep domain expertise (e.g. built in energy, telecom, or transportation)
- Crypto-native thinking (protocol design, incentives, decentralization)
“You need someone who can teach me about their industry and run circles around me in crypto.”
Protocol design isn’t teachable overnight. But crypto’s relevance across markets makes this intersection critical for enduring projects.
Token Design: Purpose Over Hype
Guy cautions against gratuitous tokenization:
- If you can remove the token and the system still works, maybe you should
- Tokens are justified when solving incentive problems in decentralized networks
- Mechanism design and tokenomics are not separate: they’re one discipline
“We’ve moved from whitepaper theater to product-led crypto. Tokens must serve function, not just narrative.”
Data: The Missing DePIN Layer?
Guy points to a rising frontier: decentralized data marketplaces. Once AI scrapes the internet dry, the next goldmine is siloed or private data.
- New frameworks must compensate contributors
- Market coordination here is still nascent, offering massive upside
Why DePIN Will Eat the World
Guy’s closing argument expands DePIN’s scope beyond compute and energy:
- Health, education, supply chains, civic systems
- Anywhere crypto-coordinated infrastructure can replace slow incumbents
- A world where people use DePIN-powered tools without knowing it’s crypto
“One day, we won’t need ‘DePIN Day’ just ‘Day’. Because it’ll be everywhere”
