Mine Crypto with Radio.
How are Tokens Earned?
Hotspots earn HNT for building and securing network infrastructure and transferring device data.
The amount of HNT distributed to Hotspots depends on the type of “work” they perform based on the value to the network. This validation of network contribution is accomplished by a new work algorithm called Proof-of-Coverage (PoC).
To participate in PoC there must be multiple Hotspots at least 300 meters apart in an area, but still within range of each other (up to many miles depending on environment). Single Hotspots earn less as they can only issue Challenges over the internet, and can’t participate in Proof-of-Coverage. After the first year, distribution amounts adjust.
1. Challengers: 0.95%
Hotspots are chosen by the network to issue challenges, encrypted messages, over the Internet to a target group of Hotspots. Challenges are used by Proof-of-Coverage to validate wireless coverage.
2. Proof-of-Coverage: 18%
Hotspots earn a share of HNT for participating in Proof-of-Coverage and validating their peer’s wireless coverage. The amount each Hotspot earns depends on how often it is directly involved in Proof-of-Coverage activity.
3. Witnesses: 8.55%
Hotspots that monitor and report Proof-of-Coverage activity of other Hotspots receive a portion of HNT depending on how much activity they’ve witnessed.
4. Network Data Transfer: 32.5%
HNT is distributed to Hotspots that transferred data from devices on the network. The amount of HNT is allocated proportionally based on the amount of data a Hotspot transferred.
5. Consensus Group: 6%
All Hotspots have a score that increases or decreases based on their Proof-of-Coverage participation.
The highest scoring Hotspots are elected to the Consensus Group to perform tasks including validating transactions and publishing new blocks to the blockchain. Group members receive a portion of the 6% distributed to the Consensus Group.