The New Wireless Economy.

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The People’s Network creates an entirely new wireless economy that flips the traditional telecom model of building wireless infrastructure on its head.

Using a Burn-and-Mint Equilibrium token model, The People’s Network utilizes two units of exchange: HNT and Data Credits.

HNT

HNT is a new cryptocurrency Hotspots earn for providing and validating wireless coverage and when devices on the network connect to the Internet through Hotspots.

Data Credits

Data Credits are required for sending data on the network and for blockchain transaction fees. Data Credits are created by converting Helium, are non-exchangeable, and tied to a single-user.

HNT

HNT is mined and distributed to Hotspot Owners, Helium Inc., and Investors.

There is no pre-mine of HNT, and every month approximately 5,000,000 new HNT are minted.

DistributionInflation

HNT Distribution

30%

Network Data Transfer

Rewarded for hearing devices and relaying their packets to the internet

35%

Hotspot Infrastructure

Rewarded for participating in , witnessing and creating Proof-of-Coverage challenges

35%

Helium, Inc. and Investors

Assigned to founding bodies, investors an organizations who will manage open blockchain governance.

HNT distribution over time

The distribution of HNT changes over time to align incentives with the needs of the network.

In the early days, a higher proportion of HNT is allocated to Hotspot owners for building and securing coverage.

As the network grows, Hotspots earn more for transferring device data on the network while Helium Inc. and investors earn less. After 20 years, distributions no longer adjust and remain fixed.

Token Allocation

HNT Inflation

HNT supply comes from mining with a compatible Hotspot that both mines HNT and creates network coverage for IoT devices. All HNT was mined from genesis, and gets created at a fixed 5M/mo rate.

Data Credits reflect demand based on usage of the network. To create DCs, HNT must be burned from circulation. DCs are non-transferable or resellable, and can only be used for data transmission on the network.

As usage increases, more HNT will burn from circulation, decreasing the inflation rate. Moving forward, we expect more usage of the network driving deflationary pressure, and continually reducing the circulating supply of HNT.

An Example:

DC Demand Increases

More devices means more DCs

HNT Supply Reduces

HNT is burnt to create Data Credits

Inflation Rate Reduces

Devices add deflationary pressure to HNT

Data Credits

Data Credits are the only payment accepted to send data over the The People's Network.


Data Credits allow users to transfer bytes of data via Helium LongFi and use for blockchain transaction fees. The price of Data Credits is fixed in USD (1 Data Credit = $0.00001). Like pre-paid cellphone minutes or airline miles, Data Credits are non-transferrable, and can only be used by their original owner.

To acquire Data Credits, network users convert HNT or obtain them from an HNT owner. Any HNT converted to Data Credits is permanently removed (“burned”) from the circulating supply.

Burn-And-Mint Equilibrium

Burn-And-Mint Equilbrium (BME) is token economic structure utilizing two token types.

The following articles explain more how this works.

Messari

Burn-and-Mint Equilibrium

Multicoin Capital

New Models for Utility Tokens