What is Daylight? A comprehensive analysis of the $88 million financing DePIN project and its energy revolution.

In the trend of the integration of blockchain technology and the real economy, a DePIN (Decentralized Physical Infrastructure Network) project focused on the energy sector, Daylight, is attracting significant market attention. What is Daylight? Essentially, it is a blockchain project aimed at establishing a decentralized energy sharing network (DeGEN), allowing households and individuals to participate in the production, storage, and trading of energy through a token incentive mechanism. The project completed a new round of financing of 75 million dollars in October 2025, with a total financing amount reaching 88 million dollars, receiving strong endorsements from top venture capital firms like a16z Crypto, showcasing the immense potential of applying blockchain technology to the traditional energy industry.

01 In-depth analysis of the project: Innovative applications of DePIN technology in the energy sector

What is the core technology architecture of Daylight? The project has built a multi-layered technological ecosystem that organically combines energy devices from the physical world with the token economy of blockchain. Its technological foundation is established on a decentralized energy network, connecting devices such as solar panels, battery storage systems, electric vehicle chargers, and smart thermostats in homes through the Daylight application. This interconnection of devices provides a physical basis for the coordinated scheduling and optimized utilization of energy.

At the application layer, Daylight has developed a complete solution matrix. The Daylight market lowers the procurement threshold for distributed energy devices through standardized processes, making it easier for homeowners and small businesses to obtain equipment such as solar panels. The DayFi protocol introduces DeFi elements, allowing investors to allocate funds into a portfolio of solar and energy storage assets to earn returns related to electricity revenues. This design not only provides funding channels for projects but also creates opportunities for ordinary investors to participate in energy infrastructure development.

The application scenarios of the project mainly revolve around three dimensions: at the household level, users can earn additional income by sharing surplus electricity; at the community level, aggregated distributed energy can form virtual power plants to participate in grid peak-shaving services; at the investor level, the DayFi protocol offers investment targets with low correlation to traditional financial markets. This multi-layered application scenario design greatly enhances the project's commercial viability and expansion potential.

02 Team and Financing: The Development Trajectory Backed by Top Venture Capital

The financing journey of Daylight fully reflects the high recognition of capital markets for energy-related DePIN projects. The project completed a $4 million seed round financing in 2022, followed by a $9 million Series A financing led by a16z Crypto in 2024. The latest round of financing in October 2025, totaling $75 million, includes $15 million in equity financing and $60 million in project development funds. This combination financing not only meets the company's operational needs but also provides sufficient funds for the project's infrastructure construction.

The lineup of investors is impressive, including well-known institutions such as a16z Crypto, Framework Ventures, Lerer Hippeau, etc. These investment institutions not only provide financial support but also offer comprehensive empowerment to the project in areas such as technological research and development, business expansion, and regulatory compliance. In particular, a16z Crypto's deep accumulation in the blockchain and energy technology fields has provided important guidance for Daylight's technical roadmap and business strategy.

From the perspective of the team's execution capability, the project has successfully launched operations in states such as New York, New Jersey, and Pennsylvania, and plans to expand into key markets like California and Texas. This solid regional advancement strategy reflects the team's deep understanding of the regional characteristics of the energy industry and has accumulated valuable experience for subsequent scaling expansion.

03 Token Economics: The Fusion Mechanism of Energy Value and On-Chain Incentives

The design of the total supply needs to balance short-term incentives with long-term sustainability. Although specific data has not been fully disclosed, based on the common characteristics of energy-related DePIN projects, the total amount of tokens needs to fully consider the growth curve of network devices and the scale effects of energy contributions. A reasonable total amount setting should cover the device incentive needs of the current pilot area while leaving ample room for future cross-regional expansion. The inflation mechanism of the supply also needs to be linked to the actual energy contribution of the network to avoid excessive issuance leading to incentive dilution.

Initial circulation strategy is crucial for the early price discovery of the project. Considering the energy equipment and active user base that Daylight has already deployed, the initial circulation ratio may need to support sufficient market trading depth and price stability. Unlike other purely digital projects, the value of Daylight's Token is backed by tangible energy assets and income, providing a relatively reliable fundamental reference for initial circulation valuation. The distribution of circulating tokens should prioritize energy contributors and network maintainers to ensure consistency between token flow and value creation.

On the core functional level, the Daylight Token constructs multi-dimensional application scenarios:

Energy Contribution Incentive is the most fundamental and core function of the Token. Users can receive Token rewards by connecting their energy devices to the network and sharing excess electricity. This mechanism transforms the energy contributions from the physical world into economic incentives on the Blockchain, creating a unique value cycle system. Specifically, Daylight aggregates these distributed energy sources, sells them back to the grid during peak electricity demand, and then distributes the earnings to participants in the form of Tokens. This model not only enhances the stability and efficiency of the grid but also provides ordinary households with a low-threshold way to participate in the energy market. As network effects strengthen, the demand for Tokens will be directly related to the scale and frequency of energy transactions, forming a positive value growth closed loop.

Governance and Proof of Stake functionality grants token holders the right to participate in network decision-making. In the Daylight ecosystem, token holders can vote on key parameter adjustments, fund allocations, technical upgrades, and other matters. Considering the specialization of the energy sector and regulatory requirements, the governance mechanism may need to be designed as a dual-layer structure, ensuring both community participation and the professionalism and compliance of decision-making. Additionally, tokens may also serve as qualification certificates or credibility collateral for devices accessing the network, and users holding sufficient tokens may receive higher energy trading quotas or better profit-sharing ratios. This design organically combines governance rights with network usage rights, enhancing the practical value of token ownership.

Medium of Exchange and Asset Securitization is the circulation function of tokens in the ecological economy. In the Daylight market, tokens can be used as a means of payment for purchasing solar panels, energy storage devices, and other products, promoting the formation of a circular economy within the ecosystem. More importantly, through the DayFi protocol, tokens become a bridge connecting physical energy assets with the financial market. Investors can indirectly invest in the continuously growing portfolio of solar and energy storage assets of Daylight by holding tokens or related financial products and receive returns associated with electricity income. This model innovatively achieves the fragmentation and securitization of energy assets, providing exit channels and price discovery mechanisms for distributed energy investments that traditionally lack liquidity.

04 Market Performance: Leader in the Energy DePIN Track

Daylight has shown strong development momentum in the energy DePIN track. Although the project token has not yet been publicly issued, its physical business has already covered multiple states in the United States, including key markets such as New York, New Jersey, and Pennsylvania. This “physical first, token later” development path stands in sharp contrast to many purely digital projects and provides a solid support for the future value of the token based on the real economy.

In terms of community building, Daylight has established a highly engaged user base by combining offline energy devices with online Token incentives. Unlike traditional cryptocurrency projects that mainly rely on online communities, Daylight's users are both owners and users of energy devices, which greatly enhances the stability and participation of the community. As the project expands into major energy states like California and Texas, the user scale and network effects are expected to further improve.

From the market heat perspective, the concept of energy + Blockchain is gaining increasing attention. Especially in the context of frequent extreme weather events and the reliability of traditional power grids being questioned, the decentralized energy solutions provided by Daylight align with the market's demand for resilient grids and energy autonomy. This social trend provides a favorable macro environment for the long-term development of the project.

05 Competitive Advantage: Building Barriers through Technology Integration and Business Models

Daylight has built multiple competitive advantages in the energy DePIN track. Its core advantage lies in its complete technical integration capability, successfully combining physical devices, blockchain technology, and token economics to form a system solution that is difficult to replicate. Compared to traditional energy projects, Daylight achieves precise measurement and instant settlement of energy value through blockchain; compared to pure blockchain projects, it has physical energy assets and income as value support.

Strong capital and strategic resources are another key advantage. The cumulative financing of $88 million provides ample funding support for the project, especially in capital-intensive areas such as equipment procurement, user expansion, and technology research and development. The backing of top investment institutions like a16z Crypto not only provides funding but also brings valuable resources in technology, talent, and business development.

First-mover advantage and regional density also constitute important barriers. Daylight has established business bases in several states in the United States, and these early deployments have accumulated valuable operational data, regulatory experience, and user feedback for the project. As the network expands, its data advantages and network effects will be further strengthened, setting higher competitive barriers for new entrants.

06 Risks and Challenges: The Inevitable Path of Energy and Blockchain Integration

Despite the promising outlook for Daylight, investors must remain aware of the challenges it faces. Regulatory compliance risk is the primary consideration. The energy sector is one of the most heavily regulated areas in the United States, involving regulatory requirements across multiple levels, such as grid access, electricity sales, and equipment certification. Daylight needs to maintain close communication with state public utility commissions, the Federal Energy Regulatory Commission, and other agencies to ensure full compliance with regulations. The regulatory differences between states also add to the complexity of the business.

Technical Integration Complexity poses another challenge. The seamless integration of traditional energy devices with Blockchain systems faces numerous technical difficulties, including the standardization of device communication protocols, the accuracy of data collection, and the security of smart contracts. Any failure in a technical link can affect user experience and network reliability, especially in critical applications involving grid interactions.

Market competition pressure cannot be ignored. Traditional energy companies, tech giants, and emerging startups are all exploring the combination of distributed energy and Blockchain. Daylight needs to continuously innovate and execute its business strategy in this multidimensional competition. The inherent inertia of the energy industry and the cost of user switching may also affect the speed of market adoption.

Economic feasibility is key to long-term development. The project needs to demonstrate that its Token economic model can continuously incentivize participants under different market conditions while maintaining financial sustainability. Fluctuations in energy prices, changes in equipment costs, and adjustments in regulatory policies may all affect the project's economic model assumptions.

Future Outlook: Leader of the Energy Democratization Wave

Looking to the future, Daylight is expected to be an important driver in the wave of energy democratization. In the short term, the project will continue to focus on deepening its existing market and cautiously expanding into new regions, with an emphasis on verifying the replicability and economic feasibility of its business model. The launch of the Token economy will be a key milestone, requiring a balance between incentive effects, regulatory requirements, and market acceptance.

In the medium term, Daylight may explore more energy-related application scenarios, such as bidirectional interaction between electric vehicles and the grid, deep participation in demand response markets, and tracking trades of carbon credits. These expansions will further enhance the practical value and demand base of the Token. As the scale of the network grows, the energy data accumulated by Daylight may also give rise to new business models and value creation opportunities.

In the long-term vision, Daylight is committed to building a community-driven, cleaner, and smarter decentralized grid system. What is Daylight's ultimate goal? It aims to turn every household into a “micro power plant” through blockchain technology, fundamentally changing the way energy is produced, distributed, and consumed. If successful, this model can not only reduce the costs and instability of traditional energy infrastructure but also accelerate the adoption of renewable energy, providing new solutions for the global energy transition.

For investors, Daylight represents an innovative attempt to deeply integrate blockchain technology with the real economy. Its value creation comes not only from the design of the Token economy but is also rooted in the revenue and growth of the physical energy business. This dual value foundation provides an additional margin of safety while also increasing the complexity of analysis, requiring investors to conduct a comprehensive assessment from both the energy and blockchain dimensions.