• The ROI on this Algorand project using “Proof of Air” mining is insanely high, but is it sustainable?

  • Planetwatch is an air quality project founded by Claudio Parrinello, an ex-CERN manager, and is hosted on the Algorand blockchain. Planets, the project’s utility token, facilitates all of the project’s blockchain transactions and can be earned in a similar way to HNT with Helium miners. Through the HNT token, Helium provides connectivity to the internet of things network via a “proof of coverage” methodology.

    The miners are immensely popular, and most have been sold out since early 2021. Helium has a market capitalization of $2.7 billion and is one of the world’s top 50 crypto ventures. The Planetwatch initiative, on the other hand, has a market worth of only $21 million.

    It works by putting sensors in your environment that capture air quality data and transfer it to the blockchain. The tokens are designed to be redeemed for air purifiers and other environmentally friendly products, but they may also be traded on exchanges like Bitfinex. “Consumers, specialized dashboards for business and governmental users, as well as data streams for internet media sources,” the data is then shared.

    What’s even more intriguing is that the latest Planetwatch Type 2 sensors upload data to the blockchain via the Helium network. It’s an incredible example of cross-chain blockchain projects cooperating for real-world benefit. There are also reports that future technologies will be able to mine both Helium and Planets simultaneously.

    The cheapest sensors cost €549,00 + VAT and come with an annual license that starts at €50.00 + VAT. The prizes for these kind 3 sensors are said to be 46 Planets each day, which equals to about $2,350 per year based on current values. That’s a fantastic return, especially since the token isn’t even close to its all-time highs. At $0.40, the ATH was reached in November. Given the token’s modest market cap, it’s difficult to say where the price will go from here.

    However, as the network becomes more active, we should expect the rewards to diminish. The price of the type 3 sensor might yet drop by 50%, giving investors a year-over-year return of almost 100%. Daily volume is currently about $300,000, resulting in a low mcap/volume ratio, which should alert potential investors to proceed with care.

    This excites me as someone who has mined a variety of crypto coins and appreciates experimenting with new technology. I’m intrigued in the same manner that I was with Helium and Chia before abandoning them due to the prohibitive prices of more investment and time. Maybe it’s time to mine the air now that I’ve mined space and time, coverage, and cryptographic hashes. The prospector in me wants to acquire one of these devices since the return on investment appears to be excellent.

    However, the pragmatist in me believes that the ROI will drop to the point where it will be unprofitable within a year. Things that seem too good to be true are never long-lasting. The difference is that mining Planets appears to have a positive environmental impact. Would we start to change our habits if we were all more aware of the local air quality? I was really focused on minimizing my use when I installed a smart energy meter. So maybe mining Planets can help me make a modest contribution to environmental improvement?

    I’m now half anticipating gadgets to appear in the next few years that will mine several cryptocurrencies using a variety of different validation methods. It will be a quality measurement router with an ASIC chip, GPU, SSD, and various more sensors for unproven evidence. We might finally have an infinite money glitch if it comes with a built-in solar panel.

    Until then, as part of my crypto mining hobby, I’ll continue to dabble in new initiatives with the money I can afford to lose. I don’t think this is a foundations play, but Claudio Parrinello is a lot smarter than I am, so I’ll be keeping an eye on Planetwatch. I might just have to experiment with the less expensive sensor options.

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