The AI DePIN app that pays you to drive
The AI DePIN app that pays you to drive
Natix is the world's largest AI camera network
Welcome to the alpha please newsletter.
gm friends, today I’m bringing you a really exciting DePIN project that allows anyone in the world to earn whilst they drive around.
Natix Network is the world’s largest AI camera network. In one year, they have over 130,000 registered devices or drivers and have mapped 50 million kilometers of road across 171 countries.
NATIX incentivizes users to map their surroundings with their smart phone. This collected data powers their dynamic map which is used for smart-city and mobility applications.
They have an awesome consumer facing app live right now that is aiming to disrupt mainstream apps like Google Maps and Waze.
I am an angel investor in Natix and their token generation event is actually tomorrow on Solana, which is exciting for them as they have been building this for 4+ years.
Here’s my AMA with the founder Alireza Ghods.
There is also a special unique welcome code at the end of the newsletter which will give you 700 bonus points once you have downloaded the app and completed a drive.
Alpha below:
What problem is Natix trying to solve?
We started as an AI project focused on our tech stack to address a real pain point. Sharing our story will clarify the problem we’re solving.
I have a PhD in wireless communication, specializing in localization algorithms and location-enabled services. My career began in the autonomous driving industry, developing “local dynamic maps” similar to what Natix is today. We used vehicle optical sensors and AI to detect real-time road information and communicate it to nearby vehicles for better decision-making.
Later, I did business and strategy consulting at PwC, working on IoT and blockchain prototypes for corporate clients. In 2020, we founded Natix as a computer vision AI company, focusing on analyzing images and videos to detect events and understand context, similar to Tesla’s AI.
By 2021, we had a tech stack compliant with GDPR and packaged it into products like parking monitoring and crowd surveillance, generating over $300,000 in revenue. However, we realized our AI infrastructure was costly, with CCTV cameras costing around $6,000 each, posing a significant investment for scaling.
To address this, we decided to leverage existing infrastructure and tokenize it. Inspired by Helium, we aimed to create a “Helium for smart cameras” to reduce the cost of building physical infrastructure. Our cameras are used for dynamic mapping and geospatial data, essential for autonomous navigation.
As part of our go-to-market strategy, we launched the “Drive& app” smartphone app. Users place their phone on the car dashboard, and the AI detects traffic, potholes, and parking spots in real-time. This data is collected, and users earn rewards for contributing.
Where are you today? Have you seen much traction since the app went live?
We're a little over a year into the app being live; it launched in April 2023, and now it's May 2024. In this one year, we have over 130,000 registered devices or drivers, which essentially act as cameras. They have mapped almost 38 million kilometers of road across 171 countries, and these numbers are growing at quite a fast pace. I would argue that, based on the size of the nodes we have, we are one of the largest camera networks out there. Our main competitor is probably the Chinese government, which uses its network for entirely different purposes. Other than that, we are one of the largest camera infrastructures that exist. So that's the current status of our network.
When somebody downloads and runs the Natix app, what is happening in the background?
We actually detect two to three categories of events right now, with the third one coming very soon. The first category is traffic participants, which includes cars, bicycles, pedestrians, scooters, trucks, and so on. Essentially, different kinds of mobility objects—what kind they are, where they are, and how they’re moving. This is what the AI is detecting and recognizing.
The second category is traffic infrastructure, such as traffic signs, traffic lights, fire hydrants, stop signs, and other traffic-related infrastructure.
The third category will be road damages and infrastructure issues, like potholes, faded road markings, and cracks on the road surface. This information is very valuable for both automotive manufacturers and road operators, helping them identify where repairs are needed, especially in many first-world countries.
Why would someone want to use Natix over, say, Google Maps or Waze?
From a user perspective, there are several issues with Google Maps and Waze. For instance, Waze provides navigation services in exchange for user data, creating a network effect where more users improve the service quality. This model is effective but relies on selling user data to third parties. In an era where data is invaluable, it’s crucial for users to own their data and the AI models derived from it.
DePIN addresses this by analyzing the ecosystem and offering token rewards, giving users ownership in the economy. If the economy grows, users benefit financially, unlike early users of Waze who did not benefit from its acquisition by Google. This token-based value capture is more appealing than fiat currency, which depreciates over time. Imagine if early Uber drivers received shares in Uber; they would have profited as the company grew. DePIN networks offer this potential.
DePIN allows for crowdsourcing and tokenizing physical or digital infrastructure, enabling rapid and cost-effective network development. People prefer a share of the economy over mere utility or fiat money.
At Natix, we emphasize providing utility to retain users. Our app functions as a dashcam for traffic incidents, offers navigation similar to Waze, and provides real-time parking availability, like the probability of finding a spot in downtown London.
Earning tokens is great, but what will Natix do to keep users around even in a bear market?
If you want to build a product that reaches beyond a few hundred thousand people, a few million people, or even a hundred million people, you need to consider these kinds of utilities for your users. Users need to come to the app because they're gaining something proper, not just the earning aspect. Earning is a great bonus and gives us an edge compared to Waze and Google Maps, but it's not enough.
Additionally, we've implemented two other strategies to attract users. First, we were the first project to heavily gamify the user experience. We have very fun gamified mechanics tied to how users earn tokens. This was one of our biggest product bets, and it worked like a charm, increasing retention, stickiness, and the overall fun of the app.
Second, we offer non-crypto rewards to appeal to the masses. There are many power user personas, like taxi drivers and delivery guys, who are not crypto-native. We need to onboard and educate them about crypto gradually. To do this, we have a marketplace where users can redeem rewards like AirPods, Oculus devices, gift cards, insurance products, and more.
We also offer discounts for other DePIN projects through our platform, allowing users to become stakeholders in other projects. We aim to have something for everyone—that's the motto of our product and our project.
And how do you treat data privacy and tracking?
Since 2020, we’ve been building our camera infrastructure with a strong focus on privacy. As a German company, we adhere to strict EU data privacy regulations under GDPR, ensuring our technology is not misused.
Our AI tech stack ensures privacy compliance in two key ways. First, we have patent-pending technology that distorts personally identifying information, making the cameras privacy-compliant. Second, we use edge computing, allowing AI models to run directly on smartphones with AI-accelerated chips, like Apple’s Bionic or Qualcomm’s Snapdragon. This means images are processed on-device and immediately deleted, with no personal data broadcasted or stored.
For example, when our AI detects a pothole, it sends a text message with metadata—no images or personal information. Dashcam videos are saved locally on your phone, not accessible to us. This method uses 99% less data compared to competitors, with our app using around one gigabyte of data per month for extensive driving.
Building and optimizing AI models to run on smartphones is challenging, but it ensures better privacy and efficiency.
How does Natix differ from other DePIN mapping apps such as HiveMapper?
Yes, there are a couple of differences when comparing us to Hivemapper. The first one is that in our project, there is no need to buy hardware. Users can just use their smartphones, which makes it much more scalable. If you buy a Hivemapper dashcam, you need to wait a long time due to supply chain issues. For instance, if you bought it in January or February, you might have had to wait until August. I'm not sure about the current wait times, but there's this whole supply chain issue to solve. It's also not green, as you need to update your hardware over time, and that hardware becomes obsolete. With our app, when you change your phone, you take the app with you. We upgrade our hardware automatically when you get a new phone. So, using smartphones is definitely much more scalable.
The other point is that we provide real utility for drivers, as I mentioned. Earning is not the only reason users come to our product. We try to provide drivers with useful applications like parking navigation and dashcam features. Besides the utility these offer to drivers, they also create a flywheel effect.
We have a very interesting blog called "The Natix Smartphone Strategy" which explains this flywheel effect very well. Essentially, many of these driver system applications are network effect applications. The more users we have in the network, the more data they generate, which improves navigation and parking services, attracting more users to join the network naturally. This is the strong flywheel effect we experience.
Drivers are not just the supply side of the network; they also become the demand side by using services like parking and navigation enabled by the network's data.
Another important difference is that we offer both crypto and non-crypto rewards. This is crucial because we need to appeal to the masses and onboard the next millions of users. To achieve this, our product strategy should go beyond just thinking about crypto and web3. We need to think on a broader scale.
What led you to release on the Peaq Network blockchain?
So, for people who don't know, Peaq is a modular blockchain designed for real-world assets and DePIN projects. They have certain out-of-the-box components that make our lives as DePIN projects much easier. For example, they have machine ID, data verification, and access management.
For us as founders, instead of building those components ourselves, we can rely on an existing infrastructure and the SDK. It makes our life easier as they maintain it and ensure the highest level of security. For instance, Helium had its own chain when they started, but they decided to migrate to Solana because maintaining a chain is very difficult. This isn't the core of our business. We want to focus on mapping smartphone cameras or cameras in general, and building what we are good at.
We are good with leaving the core layer one story to somebody else and tapping into their security and network. Peaq is one of those projects with a DePIN-friendly stack, which is why we've been working with them since February of last year. We've been building with them since they were much younger in the DePIN space. One thing I love about Peaq is that they built this together with us. It wasn't perfect from day one, but things improved as they listened to projects like ours and adapted to our needs. This progressive path is why we want to use them.
You have also released your token on Solana. Why did you choose to use both chains?
Timing was one of the main factors because we are launching our token pretty much back to back with Peaq.
I would say Solana's ecosystem and infrastructure are still extremely powerful. It's the only other chain I would consider within the world of L1s. Solana is personally my favorite because it’s very specific to our needs. Solana is generic, and that's why we were looking for a home for our token. It was a no-brainer to go with Solana.
What kind of utility will the token have and where do you see the demand side of the tokenomics coming from?
To answer the question about the utilities of our Natix token, there are three main uses:
1. Validator Nodes (x-nodes): These nodes validate the authenticity of generated data. To become a validator, you need to stake tokens. The top stakers secure paid seats, perform validation, and earn rewards. Staked tokens are also used for bonding, with potential slashing in case of malicious activities.
2. Network Governance: Token holders can participate in decision-making by staking their tokens. Governance will be rolled out in three phases: limited governance, increased governance, and full decentralization. As decentralization progresses, token holders will have more voting power.
3. In-App Features: Natix tokens grant access to premium app features. Basic features like navigation are free, while advanced features, such as enhanced parking finders, require tokens. Users can also access exclusive marketplace offers. The “hodl function” provides additional benefits based on the number of tokens held over time.
To control token emissions and avoid over-issuing, we use a gamification system designed with input from a tokenomics expert and a game designer. Monthly competitions reward users based on leaderboard positions within regional leaderboards, ensuring a dynamic and fair system.
For long-term token value, we focus on protocol revenue from data sales, conducted in fiat. The revenue is allocated as follows: 20-25% for R&D, 40% for buyback and burn, and the remainder for stakers based on their tiers.
Have you seen positive demand for the data yet?
Yeah, 100%. So, we are actually scoping a few pilots with a couple of big map and geospatial data players. These pilots cover various use cases, from dynamic traffic sign detection to road condition indexing, which includes identifying potholes, cracks, faded road markings, and so on. We're in the final steps of finalizing these pilots, which will then move into rollouts and service level agreements. We've received very positive feedback on B2B data monetization.
Start earning NATIX
You can simply download the app and start driving to earn the NATIX token. Use the code aylo to get up to 700 bonus points when you onboard. The app is also available on the Solana saga phone.
And that’s your alpha.
Not financial or tax advice. This newsletter is strictly educational and is not investment advice or a solicitation to buy or sell any assets or to make any financial decisions. Crypto currencies are very risky assets and you can lose all of your money. Do your own research.