WiFi Dabba has been making waves by delivering high-speed internet across India. Using the Dabba token (DBT), they’ve incentivized their community and stakeholders to help build the network.
Backed by big names like YCombinator, Borderless Capital, and angel investors, this team has been pioneering low-cost public WiFi since its founding in 2017.
In this article, we'll discuss the profitability of investing in their network, explore the cost of the device, and discuss what to expect in the future.
How Wifi Dabba Works
WiFi Dabba is building a decentralized marketplace that connects people who need internet with those who can provide it. At its core, the Dabba network brings together over 150,000 Local Cable Operators (LCOs) in India.
These LCOs, who provide internet to local communities, are given access to new hardware, software, marketing tools, customer support, and affordable capital to expand their networks.
Typically, an LCO serves around 300 homes or businesses, but with so many areas still unconnected, each LCO has the potential to grow tenfold. WiFi Dabba’s goal is to empower them to make that leap. Here's how it works:
- Connectivity Enablers: These are the people or businesses responsible for setting up, maintaining, and growing the network. They include LCOs, hardware manufacturers, hotspot owners, and backhaul providers (the infrastructure behind the network).
- Connectivity Users: These are the people using the internet provided by the network.
WiFi Dabba uses the $DBT token to power this system. It operates on a “mint and burn” model, meaning tokens are created (minted) when network providers help grow the network and are removed from circulation (burned) when users consume data. This ensures that the supply of $DBT tokens decreases as more people use the network, which could increase their value over time.
Set to launch on the Solana blockchain by the end of 2024, the token has a fixed supply of 10 billion, making it scarce as demand grows.
How to Earn the Dabba Tokens (DBT)
Contributors to the Dabba network can earn DBT tokens by taking on various roles. Each role helps expand and maintain the network, and participants are rewarded with DBT for their contributions. Here’s a quick look at the roles:
- Hotspot Owner: Buy a Dabba network-compatible hotspot and lease it to the network.
- Hardware Manufacturer: Create hardware that works with the Dabba network.
- Local Cable Operator (LCO): Handle installation, maintenance, and marketing for hotspot deployment.
- Backhaul Provider: Supply the upstream internet connection for the hotspot.
- Location Owner: Provide the physical space where the hotspot is installed.
Participants can wear multiple hats, meaning a single entity can perform more than one role and receive rewards from multiple sources. For instance, an LCO could also act as the backhaul provider.
Minting vs. Staking DBT
You can earn DBT in two ways: minting or staking.
- Minting: DBT tokens are "minted" (created) as rewards for contributors when they help build or maintain the network, such as through hotspot ownership or providing backhaul services.
- Staking: Staking DBT means locking your tokens in a smart contract to support the network's operations and security. In return for staking, you receive more DBT tokens as a reward.
Reward Pools
There are two types of reward pools for hotspot owners:
- Universal Basic Income (UBI): This is distributed equally among all hotspot owners.
- Performance Pool (PP): This depends on how much data (bandwidth) each hotspot handles. To calculate the reward, the total DBT available in the pool is divided by the total bandwidth traffic for a day (called an epoch). Each hotspot owner then earns DBT based on the amount of traffic their hotspot handled.
The distribution of rewards shifts over time:
|
Year |
UBI % |
PP % |
|
1 |
90% |
10% |
|
2 |
80% |
20% |
|
3 |
70% |
30% |
|
4 |
60% |
40% |
|
5 |
50% |
50% |
|
6 |
40% |
60% |
|
7+ |
30% |
70% |
The rewards are calculated daily (once per epoch). Once the DBT token is live on the mainnet, rewards will be distributed.
Hardware Costs and Ownership
To participate, you’ll need to buy Dabba Lite hardware priced at $199 (before tax). Currently, WiFi Dabba is the only approved manufacturer, but more will be added in the future. Once you own a hotspot, you’ll lease it to an LCO who will manage it.
The total cost of ownership for one hotspot is $299. You’ll pay $199 to the hardware seller in fiat currency, while the remaining $100 will be rewarded to the connectivity enablers in DBT. This $100 covers the services provided by various stakeholders who help keep the network running.
Stakeholder Rewards
Each stakeholder gets a portion of the hotspot owner’s rewards. These include:
- LCO: 7.5% - 30% for network uptime and customer care.
- Backhaul Provider: 5% for delivering bandwidth.
- Hardware Manufacturer: 1% for warranty and service.
- Location Owner: 4% for providing the physical space for the hotspot.
Hotspot owners manage these payments through the Dabba Explorer, which includes a wallet to store and distribute DBT. If a hotspot owner fails to top up rewards, their payments may be paused, and the hotspot could be removed from the network.
WiFi Dabba Profitability
Profitability depends on several factors, such as the role you play in the network, the demand for internet services in your area, and the overall growth of the Dabba ecosystem.
The more active your hotspot is, the higher your potential earnings. Over time, the reward distribution shifts, favoring performance-based rewards, so maximizing your hotspot’s usage can lead to better profitability in the long run.
The burning process plays a key role in profitability. Whenever someone buys data credits (DC), a portion of the DBT tokens used is burned, reducing the total supply. With a fixed supply of DBT, fewer tokens in circulation may lead to increased value for the remaining tokens.
While Dabba focuses on real-world use and long-term sustainability, there is no guarantee of profit. Earnings will vary based on real-world conditions.
Conclusion
WiFi Dabba seems to have a bright future because of its real-world use and focus on bringing low-cost internet to more people. With backing from major investors and a plan that helps local communities grow, the network is in a strong position to expand.
Ready to be a part of this change? Buy your Dabba device now and help build the future of decentralized internet while earning rewards along the way.