In a rapidly expanding landscape of Decentralized Physical Infrastructure Networks (DePIN), one question dominates every founder’s mind: What are VCs really looking for? In this episode of the DePINed Podcast, host Tom Trowbridge, co-founder of Fluence, sits down with Mike Zajko, co-founder of Lattice, one of the most active venture firms focused on the DePIN space.
What follows is an unfiltered conversation about funding in early-stage crypto, the evolution of DePIN, and how founders can navigate the path from idea to investable protocol.
The Lattice Thesis
Mike Zajko didn’t come into DePIN by accident. With early investments in Helium, Filecoin, and Arweave, the Lattice team saw the potential of crypto-incentivized infrastructure long before it had a name. Today, Lattice is intentionally focused on DePIN, backing projects that aim to rebuild real-world infrastructure through decentralized coordination and token incentives.
“There’s real economic activity happening here,” Mike says. “And that changes how we evaluate these companies.”
So What Does Make a DePIN Project Fundable?
According to Mike, three factors matter more than anything:
- Proof of demand: Not just a whitepaper. VCs want to see evidence that someone wants what you’re building. That can be revenue, real-world traction, or strong waitlist signals.
- Operator mindset: Founders who treat their project like a business (not just a protocol) stand out. Infrastructure is messy, physical, and demanding. Investors want builders who are gritty and resourceful.
- Thoughtful token design: DePIN projects often rely on tokens to bootstrap supply and incentivize demand. But sloppy tokenomics, unclear utility, or unsustainable emissions are red flags.
“We don’t expect perfection from day one,” Mike says, “but we do expect a clear theory of how the token works.”
Common Mistakes Founders Make
Despite the energy in the space, Mike sees many DePIN projects stumble in familiar ways:
- Too much tech, not enough product: Building a beautiful backend doesn’t matter if there’s no frontend users want.
- Underestimating distribution: Just because a network is decentralized doesn’t mean adoption happens magically. Outreach, sales, and user education still matter.
- Neglecting unit economics: “Your early users can’t just be mercenaries,” Mike warns. Token rewards are important, but if the service isn’t compelling on its own, retention will suffer.
On Airdrops, Points, and the New Meta
Of course, no DePIN conversation is complete without diving into the latest in token launches. Mike shares candid thoughts on the “points meta,” why airdrops still matter, and how incentives are evolving.
“The way you launch matters,” he notes. “But more importantly, what comes after the launch is what defines the protocol.”
The future of token distribution, according to Mike, will combine:
- Early participation points
- Transparent contribution scoring
- Staggered unlocks based on long-term engagement
Institutional Adoption in DePIN? It’s Coming
“Real usage is what brings institutions,” Mike emphasizes.
And in DePIN, that means:
- Reliable infrastructure
- Monetizable data
- Clear end-user value
It may not happen overnight, but the infrastructure world is waking up to the potential of decentralized networks that are cheaper, faster, and community-owned.
About DePINed Podcast
DePINed is a podcast exploring the frontier of decentralized physical infrastructure, hosted by Tom Trowbridge, co-founder of Fluence. Each episode features in-depth conversations with founders, builders, and investors who are shaping the future of real-world Web3 networks.
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