DePIN News Overview

On August 7, 2024, Andrena, a decentralized physical infrastructure network (DePIN) project built on Solana, secured $18 million in an extended Series A funding round led by Dragonfly. The capital will support the development of DAWN, a decentralized autonomous wireless network.

Dragonfly Capital, a top-tier investment firm focused on DeFi, CeFi, NFTs, Layer 1, Layer 2, and infrastructure, dedicates over 31% of its investments to developer tools.

Originally, Andrena aimed to raise $5 million, but due to high demand, the round was oversubscribed, resulting in $38 million in funding.

Source: icoanalytics.org

Introduction to Andrena

Founded in 2016, Andrena is a decentralized wireless network provider that seeks to transform broadband access using blockchain technology. Since 2019, it has deployed hundreds of rooftop wireless devices across 10 states in the U.S., providing network services. Leveraging Solana blockchain, Andrena offers high-speed internet solutions that are both efficient and cost-effective, targeting remote and underserved areas.

The decentralized model allows users to share their bandwidth and earn rewards, which helps to expand network coverage and improve reliability. This innovative approach not only increases internet accessibility but also provides financial incentives for participants.

By merging blockchain with decentralized networking, Andrena is reshaping how people connect to the internet, offering a practical alternative to traditional broadband services in underserved regions. This method boosts the resilience of network infrastructure and fosters greater community participation.

What is DAWN?

DAWN (Decentralized Autonomous Wireless Network) is an innovative protocol powered by token incentives designed to revolutionize last-mile internet infrastructure. Using cutting-edge wireless technology and decentralized systems, DAWN aims to create a more open, affordable, and equitable internet. It connects users directly to internet exchange hubs, lowering costs and enhancing the resilience of home networks. The protocol achieves this through a combination of incentives, decentralized consensus, and a marketplace for bandwidth.

DAWN envisions achieving “wireless independence,” much like how solar energy promotes energy independence, dramatically changing how we access the internet. This sets the stage for a more democratic and transparent internet infrastructure. Since 2019, Andrena has been offering internet services across 10 U.S. states, with plans to move its users and revenue onto the blockchain after the DAWN token launch.

How Does DAWN Work?

DAWN is a protocol designed to build a decentralized, autonomous wireless network, using innovative technologies and consensus models to deliver cost-effective, open, and fair internet services. Its functioning can be broken down into the following main components:

Node Types

In the DAWN network, participants can take on one or more of the following roles:

• Bandwidth Nodes (BN): These nodes provide wholesale internet capacity for resale, utilizing DAWN-approved wireless equipment that offers downstream speeds over 1 Gbps and covers areas up to 5 miles. These devices use point-to-multipoint transmission, serving between 15 and 100 end-user nodes simultaneously.
• Distribution Nodes (DN): Typically installed on the rooftops of homes or businesses, these nodes connect to bandwidth nodes via a robotic antenna system (RAS) and distribute the signal to end users. Distribution nodes can also connect to each other, forming a self-healing and programmable core network.
• End-User Nodes (EN): These are the final users consuming bandwidth provided by the distribution nodes.
• Foundation: The foundation oversees the management of smart contract functions, ensuring proper node interaction, authentication, blockchain communication, payment processing, and other critical network services.

Wireless Equipment and Technology

The DAWN network leverages cutting-edge wireless technology, mainly using the 60GHz frequency band and other millimeter-wave spectrums. It isn’t tied to any specific hardware provider. Instead, it relies on a network of bandwidth and distribution nodes that utilize point-to-point and point-to-multipoint radio and antenna setups.

The Robotic Antenna System (RAS) is at the heart of the system, which ensures efficient last-mile internet delivery using electromechanical beam steering. This design takes advantage of recent breakthroughs in multi-gigabit wireless technology, particularly in the 60GHz and other millimeter-wave ranges, to provide effective and reliable last-mile internet coverage.

Consensus Mechanism and Proof Systems

DAWN uses a range of decentralized consensus mechanisms to ensure the stability and trustworthiness of the network. Key mechanisms include:

• Proofs of Network Resources: DAWN verifies bandwidth, data services, and location accuracy through a decentralized network of “watchtower” nodes managed by the Witness Chain. These proofs are secured by Ethereum validators and staked ETH and are processed through smart contracts.
• Proof of Backhaul: This decentralized speed test system sends small data packets from challenger nodes to bandwidth or distribution nodes to measure their response times and latency. This data helps determine the backhaul bandwidth capacity and optimize bandwidth allocation and over-subscription rates in smart contracts.
• Proof of Service: A decentralized data metering system that replaces traditional billing models. This mechanism ensures that both parties agree on usage metrics, leading to accurate billing and settlement for network services.
• Proof of Location: This system verifies the location of DAWN nodes. In the first layer, the Witness Chain uses internet latency-distance data to confirm the location. In contrast, the second layer uses decentralized radio triangulation and GNSS technology to pinpoint the exact positions of bandwidth and distribution nodes.
• Proof of Frequency: Frequency management is key in wireless networks. Nodes must stake tokens to access specific frequency bands, and nearby nodes scan the spectrum to verify its usage. Nodes are rewarded with tokens based on expected wireless signal strength.

Smart Contracts and Blockchain Ecosystems

In the DAWN protocol, all interactions and transactions are governed by smart contracts. These include:

• Federal Contracts: These contracts incentivize network nodes managed by the foundation, ensuring smooth network operation.
• Backbone Contracts: These contracts define the terms for bandwidth allocation and data transmission between bandwidth and distribution nodes.
• Access Contracts: These contracts handle network access and bandwidth usage between distribution nodes and end-users.

All smart contract operations are settled using DAWN tokens, with resource pricing and allocation based on factors like bandwidth reservations, data services, location, and over-subscription ratios.

How Smart Contracts Work

DAWN’s smart contracts run on the Solana blockchain and are protected by a multi-layer oracle system. Key functionalities include:

• Proof of Backhaul Contracts: These contracts assess the backhaul capacity of bandwidth nodes to ensure they deliver enough bandwidth to downstream nodes. Validators challenge the bandwidth by running speed tests, ensuring reliable data transmission.
• Proof of Service Contracts: These contracts create a decentralized data metering system, replacing traditional centralized billing methods. Settlements are made based on the actual data usage between users and providers.
• Proof of Location Contracts: These contracts verify that nodes operate at their claimed physical locations, which is critical for maintaining the network’s structure.

All activities within the DAWN protocol are managed via smart contracts on the Solana blockchain. These contracts, including those for Proof of Backhaul, Proof of Location, and Proof of Service, ensure secure and accurate network performance, data measurement, and location verification. The smart contracts also handle payments and settlements between nodes, ensuring the network remains transparent and decentralized.

Highlights

The standout feature of DAWN is its innovative decentralized protocol, which merges cutting-edge wireless technology with crypto economics, resulting in a low-cost, high-performance, and self-healing wireless network. This approach significantly reduces reliance on traditional internet monopolies while ensuring fairness and security through trustless mechanisms. Andrena’s use of wireless technology, rather than conventional cable connections, is the key factor behind DAWN’s affordability.

Related News: Princeton dropout connects housing tenants to internet for $20 a month

Andrena Team and Investors

Team Background

Andrena, headquartered in New York, was co-founded by Neil Chatterjee, James Smits, and Nick De Veaux. The CEO, Neil Chatterjee, studied electrical engineering at Princeton University, NJIT, and Montclair State University. Before Andrena, he was VP of Engineering at DentBoard, the first cloud-based practice management platform focused on the dental industry.

Chatterjee, who grew up in West Orange, started taking courses at NJIT during high school. A typical tech entrepreneur, he dropped out of Princeton University after his junior year when he realized his mission was to provide affordable internet access. Today, Andrena serves approximately 3,500 households in Newark, with about 10,000 users across several states, and new customers from housing authorities.

James Smits, Andrena’s co-founder, chief Operating Officer (COO), and Chief Product Officer (CPO), was previously a venture partner at KohFounders and Beta Bridge Capital, a business development associate at Banyan Water, and a mentor at the Melbourne Accelerator Program. He holds a bachelor’s degree in economics and environmental studies from Princeton University and is also a member of the Melbourne Cricket Club. Additionally, he holds OSHA 30 certification from the Occupational Safety and Health Administration (OSHA).

Nick De Veaux, Andrena’s co-founder and Chief Technology Officer (CTO), is a scientist, technologist, and futurist. A graduate of Princeton University with a degree in science and engineering (BSE), Nick previously worked as a mentor at Andela, a global talent network that identifies the top 1% of tech talent from Africa, helping them become world-class software engineers. He also worked as a data scientist at the Simons Foundation. According to his LinkedIn profile, Nick is a machine learning research scientist at Schrödinger, an international software company focused on computational tools for drug discovery and materials science.

Source: theorg.com

Investment Institutions

Andrena has raised $33 million across two Series A funding rounds, in February 2023 and August 2024, both led by Dragonfly.

Source: cryptorank.io

Andrena (DAWN) Core & Token Economy

DAWN is a decentralized wireless network protocol with a token economic model developed from Andrena’s extensive experience delivering wireless services to over 3 million households. The token economy is designed to foster ongoing innovation in wireless technology and ensure the network’s steady growth.

Andrena plans to launch its token in the near future. At that point, it will gradually move its existing customers and revenue onto the blockchain, taking a phased approach rather than making the shift all at once.

Token Economics

Token Function and Utility

The DAWN token is central to the network, serving several key functions:

• Incentives: DAWN tokens incentivize all participants in the network, including bandwidth providers, distribution nodes, and end-users, encouraging them to contribute to and support the network’s growth.
• Transactions and Coordination: Users can buy, sell, and trade internet connections using DAWN tokens via the network’s protocol, which are easily managed through a user-friendly mobile app.
• Resource Access: Tokens can be staked to access critical network resources like bandwidth, frequency, air time, and data packet prioritization, ensuring efficient use of wireless network resources.

Flexible Token Supply Model

Recognizing the cyclical nature of telecom investment, DAWN uses a flexible token supply model. The total token supply is fixed at the project’s launch, but it can expand based on locked tokens to support ongoing innovation and network growth.

This approach allows the protocol to mint new tokens when investments in new technologies are needed, ensuring the network can keep pace with industry changes. This flexibility fosters technological progress and helps maintain economic stability, especially in volatile market conditions.

• Inflation and Burn Mechanism: The DAWN protocol strategically uses controlled inflation to reduce risks for staked token holders, while an automated burn mechanism gradually destroys excess tokens to prevent excessive inflation, ensuring long-term economic stability.

Token Distribution and Reward System

The token distribution and reward system is designed to promote the long-term growth and stability of the network. Key activities such as bandwidth seeding, initial activation, strategic geographic placement, performance verification, service delivery, redundancy, troubleshooting, and maintenance are all incentivized with token rewards.

• Bandwidth Seeding: Bandwidth nodes receive monthly token rewards for delivering verifiable bandwidth to end-users.
• Initial Activation: Nodes that activate antennas in regions deemed strategically important are rewarded with tokens to offset their initial setup costs.
• Geographic Focus: Nodes in high-priority areas are given extra token rewards based on the strategic importance of their location.

Medallion System

The Medallion System is a key innovation in DAWN’s token economy. It aims to boost wireless technology deployment in targeted geographic regions by staking DAWN tokens. Based on Uber’s H3 spatial indexing model, participants can secure future rewards from specific hexagonal areas by staking DAWN tokens.

• Staking and Rewards: Participants receive one medallion for every 100,000 DAWN tokens staked. This medallion can be allocated to a specific region, increasing that area’s reward multiplier, which incentivizes more node deployment in those locations.
• Inflation Control: The system includes a gradual token burn mechanism to manage inflation. When staking yields exceed 50%, the burn rate starts to increase. Ten percent of excess returns between 50% and 100% are burned, and thirty percent of excess returns above 100% are burned. This mechanism allows medallion holders to earn rewards while keeping inflation under control.

Staking Incentives and Mechanisms

In DAWN, staking goes beyond the Medallion System and extends to key network resources like frequency, IP space, air time, and data packet prioritization.

• Frequency: Nodes must stake DAWN tokens to gain access to wireless channels. Neighboring nodes verify proper spectrum usage through a frequency-proof system.
• IP Space: Given the scarcity of IPv4 addresses, nodes need to stake tokens to access IP space, ensuring efficient use of network resources.
• Air Time and Data Packet Prioritization: Downstream nodes can stake tokens to secure higher priority for air time in multipoint communications and gain priority for data packet transmission on congested links.

DAWN Expected Initial Token Distribution

DAWN plans to have a total token supply of 1 billion $DAWN tokens, with the following allocation breakdown: 20% to the treasury; 20% to the founding team; 20% to investors; 25% to distribution nodes (DN), amounting to 250 million $DAWN; 7% to third-party verification providers; 3% to ecosystem partners; 5% to other stakeholders.

Andrena has not yet launched the DAWN token, so these are anticipated distributions that may change after the token is issued. The expected distribution details can be seen in the table from the whitepaper.

Source: DAWN Whitepaper v1.0

Conclusion: Is Andrena a Good Investment?

Andrena is a decentralized wireless network provider that aims to transform broadband access with blockchain technology. Its DAWN protocol, built on Solana, offers efficient and affordable internet services for remote and underserved communities. By leveraging decentralized infrastructure, users can contribute bandwidth and earn rewards, enhancing network coverage and reliability.

The company has raised $33 million across two Series A funding rounds and plans to move its existing customers and revenue onto the blockchain gradually. Andrena’s key strength lies in its innovative decentralized protocol design, combining cutting-edge wireless technology and crypto economics to deliver a low-cost, high-performance, self-healing wireless network.

As a DePIN (Decentralized Physical Infrastructure Network) project, Andrena reflects the future of decentralized network infrastructure. It solves key problems in traditional network services, particularly in underserved regions. However, with the token yet to be issued, investors should carefully consider the risks and potential rewards before making a decision.