Dawn Raises $13M to Accelerate Decentralized Internet Infrastructure Expansion

Source: DefiPlanet Original Title: Dawn Raises $13M to Accelerate Decentralized Internet Infrastructure Expansion Original Link: https://defi-planet.com/2025/12/dawn-raises-13m-to-accelerate-decentralized-internet-infrastructure-expansion/

Quick Breakdown

• Dawn closes $13 million Series A led by Dragonfly Capital, with participation from CoinFund, Robot Ventures, and Dispersion Capital.
• Funds target scaling DePIN broadband networks to deliver high-speed internet via blockchain incentives in underserved areas.
• Project now serves over 10,000 users across five countries, with plans to reach 100,000 hotspots by the end of 2026.

Dawn, a pioneer in decentralized broadband networks, announced a $13 million Series A funding round on December 18, 2025. Dragonfly Capital led the investment, joined by CoinFund, Robot Ventures, Dispersion Capital, and angels including Solana co-founder Anatoly Yakovenko.

This capital infusion boosts Dawn’s total funding to $18 million since its 2023 launch. The company uses blockchain to incentivize users to deploy and operate Wi-Fi hotspots, creating a shared physical infrastructure network (DePIN) that rivals traditional ISPs in cost and speed.

The funding arrives as DePIN projects gain traction in Web3, addressing global broadband gaps that leave 2.6 billion people without reliable internet. Dawn’s model rewards hotspot operators with $DAWN tokens for providing coverage, enabling speeds of up to 1 Gbps in tested markets such as Nigeria and Indonesia.

CEO Lucas McDonald stated the raise positions Dawn to deploy 10,000 new hotspots in 2026, focusing on emerging markets. This expansion aligns with broader industry shifts, as seen in similar DePIN efforts by Helium and World Mobile.

Funding fuels aggressive network rollout

Dawn plans to allocate 60% of proceeds to hardware procurement and miner incentives, 25% to engineering hires, and 15% to regulatory compliance. The platform already operates in five countries, serving 10,000+ active users with 99.9% uptime. Token utility drives participation: users earn $DAWN for bandwidth shared, while enterprises access enterprise-grade connectivity via smart contracts.

Backers highlighted Dawn’s edge in combining Solana’s high-throughput blockchain with low-cost hardware. “Decentralized networks fix what centralized telcos cannot, affordable access everywhere,” said Haseeb Qureshi of Dragonfly. Competitors like Helium have scaled to millions of devices, but Dawn differentiates by focusing on broadband rather than IoT. Risks remain, including regulatory hurdles in telecom-heavy regions and token volatility.

Meanwhile, the U.S. SEC issued a rare no-action letter to DoubleZero, assuring they won’t pursue legal action over the 2Z token, effectively ruling it is not a security. Commissioner Hester Peirce’s comments frame these DePIN tokens as incentives for building physical infrastructure rather than traditional investment contracts. This decision establishes a clear legal framework for decentralized networks to operate in global digital economies without stringent equity regulations.