Drive to earn？In-depth analysis of DePIN’s business model in Dimo’s race track project.

On The Road To Earn An In-Depth Look Into DePIN's Business Model Within Dimo's Race Track Project

Author: @ice, JDI Global

TL;DR

• Dimo’s approach to IoT is commendable. The ownership of driving data is a huge concern for users, and Dimo’s product design and business implementation are simple and feasible. The founding team has years of experience in IoT products, and their credentials are satisfactory. With a rich user experience and early incentives, Dimo can attract a loyal user base.

• DIMO and Hivemapper are both products under the concept of Drive to Earn. The difference lies in Dimo’s inclination towards rewarding device connections and vehicle owners based on their effective usage and device connectivity. On the other hand, Hivemapper focuses more on users’ extensive map data collection. Based on this foundation, the incentive mechanisms for both products also differ. In terms of token economy design, both consider various possibilities to adjust incentive measures to meet the long-term token economy reward.

• Additionally, the NFT collects all the vehicle information, allowing users to sell their vehicle data history through any normal vehicle transaction. This greatly simplifies and protects users’ privacy in terms of vehicle transfer, third-party information processing, and transaction processing. It makes the supply side of vehicle information extremely convenient.

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• In comparison, because of its different positioning in the market, I personally believe Dimo will have an easier time in market development compared to Hivemapper. The direct reason is that Dimo’s design is more tailored to user needs, making it convenient for data collection and usage on the consumer side, while Hivemapper leans towards B2B products.

• However, based on the information gathered so far, Dimo’s team does not seem to have as much experience as Hivemapper’s team. Perhaps they need to strengthen their network expansion.

Research Background: Dimo raised a total of $9 million in seed financing.

Basic Information

Dimo is building a user-owned Internet of Things (IoT) platform that allows drivers to collect and share their vehicle data. Drivers can understand their vehicles, contribute data to an open ecosystem where it can be used to develop new technologies and applications, and earn DIMO tokens through participation. Built on Polygon.

Project Summary: Drive-to-Earn, Dimo aims to break down the barriers of the shared vehicle information platform and integrate all platforms related to vehicle information. It utilizes Proof-of-Movement (PoM) to prove actions such as automatic parking and finding parking spaces in a certain location.

Official Website: https://dimo.zone/

Whitepaper: https://docs.dimo.zone/dimo/overview/intro-to-dimo

Frameworks and Products

The Dimo business model entails:

1. Users buy ($300 each) the devices, initiating data collection;

2. Developers can develop applications and services based on their advantages, no longer entering into closed distribution channels;

3. Under transparent rules, privacy and regulatory supervision can coexist, supporting appropriate funding for physical and digital public products of modern interconnected devices.

Framework:

By using open-source components to build, transparency, privacy, composability, and reliability of the IoT network can be improved, increasing trust from users and developers towards connected devices and services.

Based on this foundation:

• Users own and entrust access to connected devices, working for themselves rather than the companies that manufacture them;
• Meanwhile, developers can build applications and services to compete based on their strengths, rather than accessing closed distribution channels;
• Privacy and regulatory supervision can coexist under transparent rules;
• Appropriate funding can be provided for physical and digital public products of modern connected devices;

Participants:

• Original Equipment Manufacturers (OEMs). Control systems in cars need to respond to instructions and inputs from users, third-party operators, and external sensors. Errors need to be shared.
• Landowners. Prices and availability should be appropriately shared with current and potential users.
• Application developers. Interfaces can be established within existing mobile or travel applications.
• Regulatory agencies. Events and security issues need to be shared without compromising privacy.
• Parking operators. Real-time status of parking spaces needs to be communicated to users and owners. Backup control needs to be provided to local parking attendants.
• Insurance companies. Receive data on risks to appropriately distribute and price policies.
• Car owners.

Components of the DIMO Platform:

DIMO’s core ecosystem consists of MQTT, Streamr, Kafka, distributed hosting technologies such as Kubernetes and Docker, and data storage technologies like IPFS and S3.

It shares similar functionality with other connected device solutions (iRobot, Nest, OnStar):

• Connected devices
• Control devices
• Retrieve data from devices
• Manage access to devices

• In terms of hosting, it is hosted on Kubernetes using major cloud providers. Kubernetes enables DIMO’s Web Services team to run both web2 and web3 components, which are yet to be decentralized, and will gradually achieve decentralization as the platform develops.
• Regarding authentication, DIMO supports oAuth and Ethereum login for most user flows.
• Store critical data within the platform using Ethereum and Polygon.
• Utilize IPFS for storing device data.

To distribute $DIMO tokens to users who provide valuable services to the ecosystem

• Enable car owners to securely connect their cars to DIMO, allowing them to capture, store, and securely share their data
• Use our token for large-scale data collection, storage, and analysis, ensuring consistency for platform developers, data consumers, and app builders
• Build next-generation consumer products and enterprise services: JD Power, Kelley Blue Book, Consumer Reports, peer-to-peer car sharing and ride-hailing services, smart insurance, and automotive finance can all be rebuilt on our open technology stack.

Product Applications:

1. Open Vehicle ID (Beta Testing Phase)

• Link all vehicle information through Open Vehicle ID (in NFT form). When vehicle data is sent to the DIMO network, the owners of the vehicle assets can access the vehicle’s data, analyze it, delegate it, or authorize third-party users such as insurance, accident reconstruction, car sharing, pre-purchase inspections, etc., through this NFT.

Main elements of Open Vehicle ID:

• – Car photo or user skin: Users can create it using the composer in the DIMO application.
• – Partial VIN: Although DIMO NFT does not use UUID or VIN as the primary key, users can decide to add a portion of it to the NFT.
• – Manufacturing location: Reported by car manufacturers to NHTSA (or other government agencies).

1.1 DIMO Vehicle Composer

Allows users to customize and create their own open vehicle ID image. Currently, users can use over 10,000 combinations through Open Vehicle ID.

Composition elements: https://docs.dimo.zone/dimo/open-vehicle-id/dimo-vehicle-composer

• Partial VIN (Vehicle Identification Number): Although DIMO NFT does not use UUID or VIN as the primary key, users can decide to add a portion of it to the NFT.
• Manufacturing location: Reported by car manufacturers to NHTSA (or other government agencies).

Open Vehicle ID serves as an open and scalable building block, and over time, more data can be attached to increase the value of the vehicle ID as a digital asset.

The value of this digital asset can be updated with the update of vehicle data over time, and the value of the digital asset can increase with the addition of data.

Alpha Fleet ONYX NFT badges can also be claimed before obtaining DIMO devices.

1.2 Glovebox stores vehicle documents such as titles, registrations, insurances, and vehicle repair history.

2. Ethereum Login Support

In addition to traditional methods such as email and Apple, users can also login through an Ethereum wallet.

Project History

Development Progress and Plans:

• January 2021 – April 2022: DIMO early user testing network, while earning testnet reward points.
• April 2022 – October 2022: Mainnet launch.
• October 2022 – January 2023: Developers and Applications. Deploy applications and services utilizing vehicle data collected through DIMO.
• January 2023 – May 2023 – Hardware V2 and video support. Expand DIMO’s vision through new hardware and support for video applications on the DIMO network.
• June 2023 and beyond, take DIMO global.

In the coming months, the team plans to launch DIMO real-time tokens on Polygon, which will be used for governance, collateral, enhanced access to specialized features, and a vehicle NFT that will anchor all driving data, insurance information, and travel scenarios, followed by a travel NFT that will allow users to extract a subset of data streams from their vehicles and package it into a mobile credential. And package it into a mobile proof token.

Project Vision: Improve the real world by building the foundation of an open network physical system, achieving the following:

• Car owners stream data and earn $DIMO tokens.
• Data consumers access anonymized data related to battery performance, autonomous driving systems, traffic, weather, etc.
• Developers build applications for ride-sharing, smart insurance, vehicle financing, etc.

Audit report:

https://docs.dimo.zone/dimo/technical-documentation/security/audits

Team:

Alex Rawitz co-founder

https://www.linkedin.com/in/alexrawitz/

Andy C CEO

https://ajchatham.com/

DIMO founder, dedicated to providing applications for Internet of Things, electrification, and robotics technologies. Previously worked at Transdev as the Project Director for automated shuttle projects in North America, including Babcock Ranch in Florida, 61AV in Denver, and Montreal Olympic Park. Built software applications for 10k+ drivers and 10m+ users of SuperShuttle, ExecuCar, and taxi fleets.

Investment Institutions and Investors

The company Digital Infrastructure Inc. that focuses on building the DIMO network has raised a round of financing led by CoinFund, Variant Fund, Slow Ventures, Table Management (Bill Ackman), Wonder Ventures, and Streamr. Other participants include Stratos Technologies, Lattice, and angel investors such as Rick Wagoner (former CEO of General Motors), Mark Joseph (CEO of Mobitas Advisors), Trevor McFederies (CEO of Brud), Amir Haleem (CEO of Helium), Kiran Bhatraju (CEO of Arcadia), Ro Gupta (CEO of Carmera), Michael Cena (CEO of 3Box Labs), Jake Chervinsky (Blockchain Association Policy Director), LianGuaicky McCormack (Not Boring Capital), and Mason Borda (CEO of Tokensoft), who contributed a total of $9 million in financing.

Technological Applications

Economic Model

$DIMO

Total token supply: 1 billion

Allocation:

• 70% of $DIMO tokens will initially be allocated to a community-controlled DAO treasury. The release of $DIMO tokens will take over 8 years to fully unlock 80%. Approximately 45% of the tokens in the treasury will be allocated to a token pool for user rewards, with the specific amounts pending proposal. This token pool will incentivize users to participate based on baseline demand signals.
• The remaining 30% will be allocated to DIMO founders and contributors (estimated around 225,000,000) and capital partners supporting key DIMO development activities (estimated around 75,000,000). Founders and employees may receive a share of the allocation, which will be subject to a four-year vesting schedule and require continued contribution to the project. Capital partners will be locked for two years and their tokens will start unlocking on a monthly basis over a year, with 1/12 of the tokens unlocking each month, amounting to 33% of the tokens.

Unlock Schedule

Demand Signal

**Baseline Demand Signal:** Rewards users based on the duration of their connection, the type of vehicle driven, and the type of data provided. The goal is to incentivize drivers to connect various types of vehicles and stream data types that we anticipate will be valuable to data consumers and application developers in the future.

**Market Demand Signal:** Rewards users based on the fees paid by third parties for their data. For example, if Acme Corp subscribes to Alice’s data for $10/month, Alice will receive $10 minus the fee amount (to be determined) on a monthly basis.

**The bonus pool mentioned in the above allocation is used for rewards based on the Baseline Demand Signal**, with the amount and timing of the releases adjusted based on a set value. It will be issued over 40 years, with 1,300,000 USD worth of DIMO tokens distributed to users per week in the first year, gradually decreasing by 15% each year.

**The setting of the weekly issuance time is based on the commuting time of the vehicles,** and the driving behavior varies greatly throughout the day (i.e., it is concentrated during peak commuting hours). If the issuance agreement allocates $DIMO on an hourly basis, then drivers will receive insufficient compensation during peak hours (because rewards will be distributed among a high proportion of drivers), while drivers who drive at 3 am will receive excessive compensation. The weekly issuance allows for a predictable issuance schedule, optimized transaction fees, and relatively frequent reward distribution without incentivizing abnormal driving behavior.

When the token distribution goes live on the main network, the weekly issuance will be distributed from each pool according to the following method.

Tokens are allocated based on the user’s connection time and connection count. This design allows for rewarding and controlling those who have been long-term supporters of DIMO, as well as incentivizing continuous data connections to tell a more comprehensive story of driver behavior and vehicle performance over the long term. It also rewards users who provide more quantity and frequency of reliable data, most importantly,

it avoids distance or time-based rewards to avoid incentivizing unnecessary and wasteful driving.

Community Ecology

Popularity and Sentiment

Twitter: While the number of Twitter followers is low and the registration time is long, dimo has been doing some things at the application layer. For example, downloading the app and connecting to cars to earn rewards. In addition, social media popularity is relatively low. There are many Chinese channels on dc, which is strange.

Competition

Project	Hivemapper
Introduction	Hivemapper aims to create a decentralized global map that rewards contributors. Contributors can collect data by installing Hivemapper’s dashcam and earn local token HONEY as rewards.
Public Blockchain	SOL
Track	Drive to Earn
Vision	Walking Miner
Founder Background
Investment Institutions	Hivemapper announced that it has raised $18 million in Series A financing. The round was led by Multicoin Capital, with participation from Craft Ventures, Solana Capital, Shine Capital, Spencer Rascoff’s 75, and Sunny Ventures. Together with previous investments from SLianGuairk Capital, Founder Collective, and Homebrew, Hivemapper’s total funding amounts to $23 million.
Twitter Followers	13.6k
Twitter Commonly Followed	Helium

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