How The Posemesh's Token Economy Enables Spatial Computing DePIN

Spatial computing and decentralized physical infrastructure networks (DePINs) are among the most talked-about trends in tech today. While the spatial computing market was valued at just under $100 billion last year, it's expected to hit $280 billion by 2028. Meanwhile, the market cap of DePIN has more than doubled over the last six months, rocketing from $10 billion to $25 billion.  The potential of DePINs to redefine industries such as energy and telecoms means it could be worth over $3 trillion by 2028 according to some forecasts. 

All of which makes the posemesh a particularly intriguing proposition. Conceived by Hong Kong-based tech firm Auki Labs, the decentralized protocol for AR, the metaverse, and smart cities is on a mission to bring the benefits of both spatial computing and DePIN to the masses.

Spatial Computing and DePIN Definitions

Spatial computing is an umbrella term to describe various interactive human-computer technologies, from virtual reality (VR) and augmented reality (AR) to mixed reality (MR) and Internet of Things (IoT). 

Concerned with the convergence of physical and digital worlds, spatial computing helps machines like autonomous vehicles, drones and robots ‘learn' spatial awareness, the better to help them navigate their environment.

Increasingly powered by AI, spatial computing seeks to take the screen out of the equation, turning the world itself into a vast canvas upon which digital tools and services can be overlaid. Apple's recently released Vision Pro headset is the first example of a mass-market apparatus described as a spatial computer. Given time, devices utilizing this tech may eventually replace smartphones.

Decentralized physical infrastructure networks are blockchain-powered networks that operate physical hardware infrastructure. This is in contrast to decentralized blockchain networks for crypto-assets like Bitcoin. Although Bitcoin is widely used in the real world, it's a currency that basically exists on a digital ledger. The assets DePINs manage, on the other hand, are tangible, relating to things like data storage, wireless connectivity, and compute capacity.

DePINs use tokens to incentivize users to build and maintain real-world infrastructure networks, such as those that provide goods and services to consumers. By leveraging on-chain AI. It intends to achieve this by using the Hagall network to route posemesh traffic over a decentralized network of hyperlocal servers and microcomputers, tapping into the idle compute power of users all over the world.

Of course, as with other DePINs, users must be incentivized to participate. This is where tokens come into the picture – the $AUKI token specifically. While the consumption of services and resources incurs a fee, the provision of services and resources triggers token rewards, with the amount determined by metrics like data served, sessions hosted and response time.

All participants looking to consume services in the posemesh must first burn a dollar-denominated amount of $AUKI to obtain a balance of posemesh credits, with each burn resulting in an immediate deflationary mint that enters a reward pool.

When consumers spend their credits on services, the pools then issue tokens to participants who provide hardware to the DePIN (known as operators). In order for operators to become eligible to join clusters and earn rewards, they must also stake a token-denominated reputation in $AUKI tokens.

This burn-credit-mint economy enables the posemesh to provide services at a predictable and stable price while balancing rewards to ensure participants continue contributing to the network.

Blockchain tokenomics being what they are, the price of $AUKI affects how the posemesh operates. When the token price is low, consumers end up burning a greater amount of tokens, which accelerates the deflation of the circulating supply. When the token price is high, consumers burn fewer tokens for the same amount of credits.

Effectively, this system motivates rational operators to purchase tokens when the price is low to make sure they can afford to act as operators when rewards are high. It is this rewards-and-reputation layer that facilitates the posemesh's decentralized infrastructure and allows it to run as a public utility rather than a corporate entity.

Interestingly, despite growing momentum, Auki Labs delayed its token listing in January after emphasizing the importance of it being accessible to a broad number of users. A trial token has since been deployed to the Avalanche C-Chain, enabling operators to stress-test the network and increase rewards. A Bug Bounty Program is also offering participants rewards of up to $2,500 for identifying vulnerabilities.

With technologists hailing spatial computing and DePINs for their transformative potential, and in light of its strong tokenomics, the posemesh is well-placed to capture the interest of crypto speculators, budding DePIN operators, and Unity developers keen to build services and apps on its protocol when it eventually launches. Expect to hear lots more about spatial computing, DePINs and the posemesh in the years to come.

This post was authored by an external contributor and does not represent Benzinga’s opinions and has not been edited for content. This contains sponsored content and is for informational purposes only and not intended to be investing advice. Cryptocurrency is a volatile market; do your independent research and only invest what you can afford to lose. New token launches and small market capitalization coins are inherently more risky than large cap cryptocurrencies. These tokens are subject to larger liquidity and market risks.

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