On January 14, Solana’s official Twitter pinned a post about the DePIN project Roam, announcing that Roam has integrated over one million WiFi hotspots into the Solana network. However, there has been little prior coverage of Roam in the crypto space.

According to DePINscan data, Roam now has approximately 1.21 million devices, making it the world’s number one DePIN project. What’s driving this explosive growth? Can its core model—“low-barrier router mining + token incentives”—truly support the global expansion of roaming WiFi networks?

Low-Threshold Routers + Token Rewards Attract Millions of Nodes

Roam, established in 2021, has raised a total of $7 million across two funding rounds (seed round $2 million, strategic funding $5 million). Compared to major players like IoTeX, io.net, and Helium, Roam’s funding is modest. However, the success of Roam despite this smaller budget could be attributed to its unique business model.

Roam operates as a decentralized WiFi network with the goal of creating a global decentralized WiFi roaming network. The concept is straightforward: users can contribute their home WiFi to the Roam network. When other users connect to their WiFi, the contributor earns reward points, which can then be exchanged for ROAM tokens.

According to PANews, as of July 2024, Roam had just over 400,000 registered users and devices. In just seven months, this number surged by 800,000 to 1.21 million devices. DePINscan data now ranks Roam’s device count as the highest globally, with over 2.08 million registered users.

Beyond contributing personal routers to the Roam network, Roam’s economic model includes self-operated WiFi miners. Users can purchase Roam’s official routers, which provide basic rewards and an NFT, as well as additional benefits such as 60 extra points per day or up to 150 points when a user logs in. Currently, Roam offers two models: the MAX30 ($199) and the MAX60 ($499). However, only the MAX60 model offers the additional point rewards. Aside from the extra points and NFTs, these routers don’t seem to have any particularly innovative features. For example, similar devices manufactured by a local tech brand cost less than 300 RMB, making them more than five times cheaper.

Roam’s rapid growth and the quick adoption of over a million devices might be due to the fact that routers are already common household devices with low performance requirements, requiring minimal setup and offering a low entry barrier for users.

PANews’ observations of Roam’s network distribution reveal that South Korea has the highest device density, with almost nationwide coverage. Other densely covered regions include China, Southeast Asia, and Europe. Interestingly, the United States has relatively low device density. This distribution suggests that Roam is most widely adopted in more developed regions, with much less coverage in underdeveloped areas like Africa. Roam’s network currently spans over 140 countries.

Can High-Premium Router Mining Lead to Excessive Profits?

According to the official information, the total supply of ROAM tokens is 1 billion. During the TGE event, 400 million tokens will be released, with the remaining 600 million to be mined over time. Out of the 400 million tokens issued at the TGE, 280 million will be available for sale, and 120 million will be reserved for the team. In September 2024, the official announcement revealed that 20 million tokens would be airdropped to MAX60, MAX30, NFT holders, and previous Roam OG miners.

As of January 15, Roam has issued around 2.139 billion points, though the exact exchange rate between points and ROAM tokens has not been announced, nor has the TGE date.

However, let’s make some simple estimates. IOTX, another DePIN project that has already issued tokens, raised $85 million and currently has a market cap of approximately $330 million. Helium’s HNT token is valued at about $867 million. If ROAM tokens reach a similar market cap to IOTX after their issuance, the average price per ROAM token would be around $0.825. This means the airdrop would be worth about $16.5 million. With 2.09 million registered users, this means each user could receive an average of $7.8 worth of tokens. Assuming half of the 1.21 million nodes are from users who purchased devices, the 600,000 device buyers would each receive an average airdrop of around $27.

If the official sale of 280 million tokens from the TGE is used entirely to redeem points, the exchange rate between points and tokens would be roughly 7.6:1. If ROAM’s market cap matches IOTX’s, each point could be worth about $0.1. With device purchase rewards offering 3,000 points plus 60 points per day for 100 days, a total of 9,000 points could potentially yield around $900. However, this is the most optimistic scenario, based on extreme assumptions. In reality, the airdrop value is likely to range from $7.8 to $900. For users who buy devices, a return of $900 over 100 days may not be a high return on investment.

From Roam’s perspective, if half of the devices sold are exclusive routers, the revenue from this segment could be as high as $127 million. Even if only 10% of the devices are exclusive routers, the revenue would still reach at least $25.47 million. This suggests that Roam’s device sales could make it one of the biggest winners in this airdrop scenario.

In addition to the decentralized WiFi network and token rewards, Roam has also launched an international roaming network service, eSIM. According to the official description, Roam’s eSIM service currently covers 160 countries and regions. This eSIM is similar to the international roaming services provided by telecom operators. The pricing ranges from $1.19 to $1.99 per GB. This service is slightly more expensive than the roaming services provided by telecom operators in mainland China.

Roam has become an emerging force in the DePIN sector. Compared to projects that have raised hundreds of millions of dollars, Roam has achieved significant results with just $7 million. However, its current coverage mainly includes more developed regions where WiFi demand may not be urgent. The primary reason for device adoption appears to be expectations for token rewards. For Roam, the biggest challenge ahead is likely to be how it plans its token economics. If the airdrop results fall short of expectations, a large number of devices may shut down. Moreover, after the airdrop, will Roam be able to maintain its current node count and continue to attract more nodes? These are key issues that Roam will need to address.

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