Helium IOT

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13 Feb 2024

Multi-Use Case Support: The Helium Network supports various use cases, including IoT devices through the LoRaWAN network and high-speed mobile connectivity via the 5G network. Hotspots earn IOT by providing wireless coverage and transferring data from nearby devices. The more data transferred the larger the reward. You earn by: Validating the network & Move data for Device users
Token: IOT
Current Price: $0.0020
Estimated Monthly Earnings: $28.38
Cost to Invest: $100 (Online marketplaces)
Link: https://docs.helium.com/home/about-helium

Introduction

The Helium Network is a decentralized, blockchain-based wireless infrastructure project that allows individuals and organizations to deploy and operate wireless networks through token incentivization. It leverages the Solana Blockchain for its foundation. The primary token powering the network is HNT, while IOT and MOBILE tokens are used to facilitate the LoRaWAN and 5G networks, respectively. Proof-of-Coverage (PoC) is a unique consensus algorithm employed by the subnetworks.

Helium Network Components

Solana Blockchain: The underlying blockchain infrastructure that provides security, scalability, and decentralization for the Helium Network.
HNT Token: The native token of the Helium Network, which is used to incentivize network participants and facilitate transactions.
IOT Token: A token specific to the LoRaWAN network, enabling low-power, wide-area network connectivity for Internet of Things (IoT) devices. PoC is employed for the LoRaWAN subnetwork.
MOBILE Token: A token specific to the 5G network, facilitating high-speed mobile connectivity and data transmission. PoC is employed for the 5G subnetwork.

Network Participants

Hotspot Owners: Individuals or organizations that deploy and maintain Helium-compatible wireless devices (Hotspots) to provide network coverage.
IoT Device Owners: Users of IoT devices that leverage the Helium Network for connectivity.
Mobile Device Users: Users of mobile devices that access the 5G network through the Helium Network infrastructure.
Developers: Individuals or organizations that build applications and services using the Helium Network infrastructure.

Key Features

Decentralized Infrastructure: The Helium Network allows for the creation and maintenance of a distributed wireless network by incentivizing participants to contribute resources and share the benefits.
Scalable and Secure: The Helium Network leverages the Solana Blockchain, which is known for its high scalability, low latency, and robust security.
Multi-Use Case Support: The Helium Network supports various use cases, including IoT devices through the LoRaWAN network and high-speed mobile connectivity via the 5G network.
Incentivized Participation: The Helium Network employs a token-based system to reward participants and encourage network growth.
Proof-of-Coverage (PoC): A unique consensus algorithm employed by the LoRaWAN and 5G subnetworks, which rewards participants for verifying wireless network coverage.

Founding and Early Vision

The Helium Network was founded in 2013 by Amir Haleem, Shawn Fanning, and Sean Carey. The founders envisioned creating a decentralized wireless infrastructure that could support the rapidly growing IoT industry. They aimed to lower the barriers to entry for IoT connectivity by creating a people-powered network, driven by economic incentives.

Launch of the Helium Hotspot

In 2019, Helium launched its flagship product, the Helium Hotspot. This device allowed users to provide wireless coverage for IoT devices over a new protocol called LongFi, which combined the long-range capabilities of LoRaWAN with the Helium blockchain. Early adopters started deploying Hotspots to earn HNT tokens as a reward for providing network coverage.

Expansion and Adoption

As more Hotspots were deployed across the globe, the Helium Network continued to grow, attracting interest from developers, companies, and individual users. The Helium Network expanded its coverage to various countries, enabling new use cases and further solidifying its position as a decentralized wireless infrastructure provider.

Transition to Solana Blockchain

To improve scalability, security, and decentralization, the Helium Network migrated to the Solana blockchain. This transition allowed Helium to leverage the high-performance capabilities of Solana, which was crucial for supporting the increasing number of network participants and transactions.

Introduction of Subnetworks and New Tokens

As the Helium Network matured, it diversified its offerings by introducing subnetworks for different wireless technologies, such as LoRaWAN and 5G. These subnetworks employed their own tokens, IOT and MOBILE, and used the unique Proof-of-Coverage consensus algorithm to reward participants for network coverage.

Present and Future

Today, the Helium Network is a rapidly growing decentralized wireless infrastructure with a global footprint. It continues to attract new users, developers, and organizations, paving the way for innovative applications and services. As the Network expands, it aims to revolutionize the wireless communication landscape and further democratize access to connectivity.

The Helium Network Token

The Helium Network Token (HNT) is the native cryptocurrency and protocol token of the Helium Network.
The original Helium blockchain produced the first HNT on July 29th, 2019, on block 93. There was no pre-mine of HNT before the launch of the Network. The Helium network migrated to the Solana Blockchain on April 18, 2023.
The mint address for HNT is hntyVP6YFm1Hg25TN9WGLqM12b8TQmcknKrdu1oxWux on the Solana blockchain.
Navigate to https://explorer.helium.com/stats for up-to-date information on Network tokens.

HNT Usage

HNT serves the needs of the two primary parties in the Helium Ecosystem:

Hotspot Hosts and Operators. Hosts are rewarded in network tokens like IOT or MOBILE while deploying and maintaining network coverage. These network tokens are redeemable for HNT.
Enterprises and Developers use the Helium Network to connect devices and build IoT applications. Data Credits, which are a $USD-pegged utility token derived from HNT, are used to pay transaction fees for wireless data transmissions on the Network.

HNT Token Economic Concepts

The Network uses three token economic concepts to ensure HNT supply is both plentiful for usage needs and relatively scarce, with a known maximum.

Max Supply

The Network targeted the distribution of 5,000,000 HNT per month at launch. Following the community approval of HIP-20, the Network uses a two-year halving schedule, resulting in a maximum HNT supply of 223,000,000 HNT.
YearYear StartHNT at Year StartTarget HNT Emission1August 1st, 2019060,000,0002August 1st, 202060,000,00060,000,0003August 1st, 2021120,000,00030,000,0004August 1st, 2022150,000,00030,000,0005August 1st, 2023180,000,00015,000,0006August 1st, 2024195,000,00015,000,0007August 1st, 2025210,000,0007,500,0008August 1st, 2026217,500,0007,500,000

The full token emission schedule can be viewed in the HNT section of this document: Token Emissions as of Solana Migration.

Burn and Mint Economics

Data Credits (DC) are a $USD-pegged utility token derived from HNT and is used to pay fees on the Helium Network. DC is only produced by burning HNT. This HNT to DC relationship is based on a design commonly called a burn and mint equilibrium and intends to allow for the supply of HNT to respond to network usage trends.

Net Emissions

Net Emissions give the protocol enough HNT for rewards in perpetuity.
Net Emissions enable the Network to monitor the number of HNT burned for DC in a given epoch and add that to the number of HNT to mint that epoch. The current value for Net Emissions is 1,643.83561643 HNT.
For example, if less than 1,643.83561643 HNT is burned for DC within an epoch, the full amount burned will be re-minted and distributed into the subDAOs Treasury for that epoch. However, if more than 1,643 HNT is burned for DC within a single epoch, any HNT burn for DC over 1,643.83561643 will be permanently burned and removed from the max supply, while 1,643.83561643 being re-minted and distributed to the subDAOs.
The Net Emissions cap can be verified on chain here
A cap on the number of HNT minted via Net Emissions per epoch ensures the desired deflationary effect of Burn and Mint and the resulting reduction of supply. Because HNT produced via Net Emissions do not add to the total outstanding, they do not violate max supply.
Review the complete Net Emissions discussion in the HIP for more information.
Helium IoT Network Token

IOT is the protocol token of the Helium IoT Network. IOT was introduced to the Helium Network through the community proposal HIP-52 and is further defined in subsequent HIPs(1,2). The first IOT tokens were minted following the Solana migration on April 18, 2023.
The IOT token is mined by LoRaWAN Hotspots through both data transfer proceeds as well as Proof of Coverage.
The mint address for IOT is iotEVVZLEywoTn1QdwNPddxPWszn3zFhEot3MfL9fns on the Solana blockchain.
Navigate to https://explorer.helium.com/stats for up-to-date information on Network tokens.

Redemption for HNT

Protocol tokens like IOT will always be backed by HNT and will convert to HNT. To enable this, each network within the Helium Network is allocated a pool of HNT based on the Network Utility Score. The redemption ratio is set algorithmically by the treasury swap contacts based on this Network Utility Score.
The Helium Wallet App serves as the primary platform for exchanging IOT to HNT. This transaction can also be performed directly through the Solana blockchain using the open-source tooling found in the Helium GitHub repositories.

Token Allocation

IOT follows a similar minting schedule to HNT, however at a max supply of 200,000,000,000 (200B).
Year 1 for IOT started on August 1st, 2022.
The issuance is scheduled to have halvings every 2 years, aligning with HNT issuance halvings.
The emissions schedule was created in HIP-52 and confirmed in HIP-77 and is as follows:
YearIOT at Year StartIOT MintedProof of Coverage (3)Data Transfer (3)Oracles (4)Operations FundveHNT Stakes15B65B30%50%7%7%6%270B32.5B28.5%51.5%7%7%6%3102.5B32.5B27%53%7%7%6%4135B16.25B25.5%54.5%7%7%6%5151.25B16.25B24%56%7%7%6%6167.5B8.125B22.5%57.5%7%7%6%7175.625B8.125B21%59%7%7%6%