On January 14th, the official Solana Twitter pinned a recommendation for a DEP project, Roam, stating that Roam is currently unifying over 1 million WiFi hotspots on the Solana network. However, there hasn't been much information about Roam in the encryption sector before.
According to the data from DePINscan, the total number of Roam devices currently is approximately 1.21 million, ranking first in the world. What kind of "magic" is behind this rapid growth? Can its core model - "low-threshold router mining + token incentives" truly support the global expansion of Roaming WiFi network?
Low-threshold router + token expectations attract millions of nodes
Roam was founded in 2021 and has completed two rounds of financing totaling $7 million to date (seed round of $2 million and strategic financing of $5 million). As a DEP project, compared to major investors, Roam can be considered as 'achieving big things with little money' in terms of financing. The reason for this effect may be related to Roam's business model.
Roam is a Decentralization WiFi network operator whose main goal is to create a global Decentralization WiFi roaming network. The narrative is relatively simple, users can contribute their own WiFi to join the Roam network, and if other users connect to the WiFi, the contributing network users can receive corresponding reward points. These reward points can be exchanged for ROAM tokens.
In the study, PANews found that in July 2024, the number of registered users and devices on Roam was only over 400,000. In just 7 months, the number of devices surged by 800,000 to 1.21 million, according to DePINscan data, ranking first in the world in terms of device quantity, with a total registered user base reaching 2.08 million.
In addition to integrating personal routers into the Roam network, Roam's economic mechanism also includes a self-operated device for WiFi miners. Users can purchase Roam's official routers to receive additional rewards besides basic rewards and obtaining an NFT, such as earning an extra 60 points per day, or a maximum of 150 points per user login. Currently, Roam has released two routers: MAX30 (priced at $199) and MAX60 (priced at $499). However, based on the information provided, only MAX60 users can enjoy additional point rewards. Apart from extra point rewards and NFTs, these two routers do not seem to have any particularly innovative features in terms of performance. A device with similar performance to MAX30 produced by a certain domestic tech brand has an average selling price of less than 300 RMB, which is more than 5 times lower in price.
In this narrative, the reason why Roam can quickly attract more than 1 million users may be because routers are currently the most common household devices, and there are no special performance requirements or need for excessive settings, making it relatively easy for people to participate.
PANews found that the device density of Roam is highest in South Korea, almost everywhere. It is followed by relatively dense areas in China, Southeast Asia, and Europe. The device density in the United States is not high. From this distribution, the main coverage areas are also concentrated in developed regions, while the device coverage in underdeveloped areas such as Africa is low. Currently, Roam's coverage has exceeded 140 countries.
Can routers with high premium mining get extra returns?
According to the official introduction, the total supply of ROAM tokens is 1 billion, with 400 million generated during the TGE event, and the remaining 600 million to be mined subsequently. Out of the 400 million generated during the TGE, 280 million are for sale, and 120 million are reserved for the team. In September 2024, the official announcement stated that 20 million tokens will be airdropped to holders of MAX60, MAX30, NFT, and previous Roam OG miners during the TGE.
As of January 15th, the number of points issued by Roam is approximately 2.139 billion, but the specific exchange ratio between points and ROAM tokens has not been accurately determined yet, and the specific TGE time has not been announced.
However, we can make some simple estimates. Another DePIN project that has already issued tokens and raised $85 million, IOTX, currently has a circulating market value of about $330 million. The token HNT of Helium has a market value of about $867 million. If the initial circulating market value of the ROAM token can reach the level of IOTX's market value, the average price of each ROAM token is about $0.825. Its airdrop scale is about $16.5 million. The currently announced registered users are 2.09 million, with an average of about 1023 points per user. The average amount each user can receive is about $7.8. Assuming half of the 1.21 million nodes are users who have purchased devices, then the average airdrop for each user who has purchased a device is about $27.
Assuming that the official will use all 280 million tokens for sale in the TGE for point redemption. Based on the current distribution of points, the exchange rate between points and tokens is approximately 7.6:1. If its market value reaches the level of IOTX, then the value of each point is about $0.1. Calculated based on the points rewarded to users for purchasing equipment, purchasing equipment can earn 3000 points as a reward, plus an additional 60 points per day for 100 days, the total points earned could reach 9000 points, and the total profit could reach $900. However, this scenario is the most ideal state because the above calculation method estimates two extreme scenarios, but it should also have some reference value. The average airdrop scale may range from $7.8 to $900. For users who purchase equipment, if they only get a return of $900 plus 100 days, the cost-benefit ratio seems not very high.
For the Roam team, if half of the devices are exclusive routers purchased by users, then the revenue from this part alone can reach at least 127 million dollars. Even if only one-tenth of the devices are exclusive routers, the revenue from this part alone can still reach at least 25.47 million dollars. From this perspective, Roam's device revenue may make it the biggest winner in this airdrop narrative.
In addition to the DecentralizationWiFi network and token linkage, Roam has also launched the eSIM international roaming network service. According to official information, Roam's eSIM service currently covers 160 countries and regions. This eSIM is similar to the international roaming network service offered by telecom operators that we are familiar with. In terms of pricing, the pricing for each 1GB ranges from $1.19 to $1.99. Compared with the roaming service prices of mainland Chinese telecom operators, this service is slightly higher in price.
Roam has become a new force that cannot be ignored in the DePIN track. Compared to many projects that easily raise billions of dollars, Roam has achieved the effect of "doing big things with little money" with only 7 million dollars. However, in terms of the current coverage areas, Roam's coverage areas are all well-developed regions, and the demand for WiFi in these areas does not seem to be essential. The current device access is mainly driven by the expectation of token incentives. For the Roam team, perhaps the biggest challenge lies in how to plan the token economy in the future. If the airdrop effect is less than expected, it may lead to a large number of shutdowns. In addition, can the current number of nodes be maintained after the airdrop, and is there still the motivation to attract more node access? These are also important issues that cannot be ignored by Roam.
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