Rewarded for hearing devices and relaying their packets to the internet
Rewarded for participating in , witnessing and creating Proof-of-Coverage challenges
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.
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.
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 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 Equilbrium (BME) is token economic structure utilizing two token types.
The following articles explain more how this works.