Framework Ventures Eyes Energy DePINs: A Strategic Bet on Disruption

Energy is no longer just a supporting act in the tech world — it’s becoming the stage itself. As tech giants ramp up their AI ambitions, the demand for electricity has skyrocketed, straining local grids and leaving smaller players scrambling for access. Amid this backdrop, Framework Ventures has set its sights on a relatively untapped frontier in crypto: Energy DePINs (Decentralized Physical Infrastructure Networks).

The New Battleground: Power and Tech

The global AI arms race has placed unprecedented pressure on energy grids. Companies are reportedly facing years-long waits to access local power grids, a reality that highlights the growing chasm between supply and demand. While the biggest tech players monopolize energy access, the broader industry is ripe for innovation.

This is where DePINs come into play. Unlike traditional centralized systems, DePINs rely on decentralized networks to bridge supply and demand, making them a potentially transformative force in the energy sector.

Framework Ventures co-founder Michael Anderson recently shared with Empire’s Katherine Ross that the firm has been zeroing in on energy opportunities over the last six months. According to Anderson, energy aligns well with DePINs, offering a fresh perspective in an industry often mired in hype around memecoins and ETFs.

Bridging the Supply-Demand Gap

One of the key challenges facing DePIN projects lies in balancing supply and demand. Anderson explained that while DePINs have successfully built supply networks, demand has historically lagged.

Peer-to-peer energy startups like Powerledger experienced a boom-bust cycle in earlier crypto waves. Powerledger, for example, allowed solar panel owners to sell excess energy to the grid. Despite its initial success, reaching a market cap of $680 million in 2018, it remains 80% below that peak.

The energy market, however, has evolved dramatically since those early days. Rising energy costs, the push for renewable energy, and advances in blockchain technology have created new opportunities for projects like Glow and Daylight — two startups backed by Framework Ventures.

The Projects Leading the Charge

Framework Ventures’ recent investments reflect its confidence in energy-focused DePINs:

• Glow: This startup rewards solar farm builders with USDC and GLW tokens, incentivizing the growth of green energy infrastructure. Glow’s model integrates blockchain with energy markets, creating a feedback loop that directly benefits renewable energy providers.
• Daylight: Backed by IoTeX, Daylight focuses on decentralizing green energy through crypto rewards. By connecting energy producers and consumers through blockchain, Daylight seeks to create a seamless, decentralized energy ecosystem.

Both projects aim to address the historical limitations of DePINs by ensuring that demand matches supply.

A Perfect Fit for Blockchain

Anderson is bullish on the potential of energy markets to integrate seamlessly with blockchain. He described energy as a “liquid, fragmented, and highly demanded ecosystem” — characteristics that align perfectly with blockchain’s strengths.

This isn’t just about fixing inefficiencies. Anderson envisions energy becoming to DePINs what financial services are to DeFi, with the transition becoming even more evident in the coming year.

The Road Ahead for Energy DePINs

While DePINs have proven their technical feasibility, mainstream adoption will hinge on their ability to demonstrate clear advantages over traditional systems. For energy-focused DePINs, the stakes are particularly high, given the critical role of energy in modern life.

If Framework Ventures’ bet pays off, the energy sector could become one of the most significant use cases for blockchain technology yet. With projects like Glow and Daylight leading the way, the transition Anderson predicts may not be far off.

The next few years will reveal whether DePINs can truly reshape the energy market or if they, like their predecessors, will struggle to scale. But one thing is clear: Framework Ventures is staking its claim on what it believes is the future of decentralized infrastructure.