In this episode of the DePINed podcast, Tom Trowbridge speaks with Markus Levin, co-founder of XYO — a pioneering project in the decentralized physical infrastructure (DePIN) space that predates even the term "DePIN" itself. This conversation explores the early days of XYO, how it evolved, and what it means to build and scale a crowdsourced network focused on location and data verification.

The Origins of XYO

Markus begins by explaining how XYO started as a proof-of-location network, designed to solve a real problem: the ease of GPS spoofing. People could fake their location through simple apps, creating issues for everything from mobile apps to supply chains and autonomous vehicles. XYO set out to create a more trustworthy system for validating physical presence.

Using IoT devices and cryptographic handshakes, XYO's system proves that devices are in proximity to each other. As these interactions increase, so does certainty. Over time, the project began layering in other types of data like temperature and offline data while preserving the same cryptographic assurances around data origin and location.

Defining DePIN

XYO was operating in the DePIN space before the term was popularized. When the term began circulating in 2022, the team realized that their mission fit perfectly within its framework. While they weren’t originally included in early DePIN conversations (perhaps due to their focus on data), they’ve always been building decentralized infrastructure with real-world use cases.

Markus notes that DePIN projects are often more grounded than typical crypto ventures, they have real business models, external revenue sources and tangible user contributions. For XYO, this has always been the case.

The Network: Four Core Components

XYO’s architecture is made up of four components:

• Sentinels: Devices that observe data (e.g. phones or sensors)

• Bridges: Relay the observed data

• Archivists: Store the data

• Diviners: Analyze and provide the best answers from the data

Whether a user is capturing Bluetooth interactions, taking photos of real-world assets, or uploading offline information, this flow ensures the integrity of data across the network.

Going Mainstream: 8 Million Nodes

A major inflection point came with the launch of the COIN app, a mobile app that simplified participation. Markus explains that while earlier efforts focused on IoT partnerships (e.g. T-Mobile, SK Telecom), adoption was slow. The COIN app allowed anyone with a smartphone to participate, significantly expanding the network.

Today, XYO boasts over 8 million nodes, with 80% of participants being non-crypto users. Most are onboarded via COIN, earning points that can be exchanged for XYO tokens or even physical items like PlayStations and AirPods.

Data Customers and Use Cases

XYO sells verified data to a variety of industries: geolocation firms, advertisers, AI trainers, and real estate intelligence platforms. Sometimes clients request broad data sets (like every restaurant in a zip code), while others want dynamic, location-based insights. The community fulfills these tasks via quests delivered in the app.

Examples include:

• Verifying opening hours of restaurants

• Collecting point-of-interest photos in specific neighborhoods

• Providing real-time geolocation verification for logistics

Revenue, Tokenomics & Sustainability

In 2025, XYO generated $10.5 million in revenue. Markus highlights that this income is used to support the ecosystem — including buying and burning tokens (over 86% of supply has been burned so far).

XYO is one of the few projects in the space that provides audited financials. The team decided early on to accept fiat payments (instead of requiring partners to use XYO directly) and then use those proceeds to buy tokens on the market.

The goal is to align project success with token holders — without compromising the business. Markus pushes back slightly on the idea of 100% buy-and-burn: while it creates strong alignment, it may also make the project overly dependent on token market conditions.

Long-Term Vision & DePIN Trends

Looking ahead, Markus shares his ambitions: $500M in annual revenue, global data collection at scale, and a system that competes not just with Web3 peers, but with Web2 giants like Google. He’s particularly excited about underserved regions like parts of Africa or Southeast Asia where DePIN can empower communities through meaningful, income-generating participation.

Markus also highlights other DePIN sectors he’s bullish on:

• Weather data collection (especially in low-coverage regions)

• Mobile infrastructure

• AI training datasets sourced from diverse populations

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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