Token Overview

Learn more about HNTWhat are Data Credits?

The Basics

Helium Tokens

HNT

Data

Data Credits

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.

At the end of each mining period, roughly every 30 to 60 mins, HNT is distributed according to the allocation shown:

Token Allocation

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

Where are Tokens Earned?

Hotspots earn HNT for building and securing network infrastructure and transferring device data.

Where are Tokens Earned?Where are Tokens Earned?
1

Challengers: 1%

Annual Change: -0.05%

2

Proof-of-Coverage: 19%

Annual Change: -1%

3

Witnesses: 9%

Annual Change: -0.45%

4

Network Data Transfer: 30%

Annual Change: +2.5%

4

Consensus Group: 6%

No Annual Change. Not shown in diagram.

Consensus Group

Data Credits

Data Credits are the only payment accepted to send data over the Helium network.

Data Credits allow users to transfer bytes of data via the LongFi wireless protocol 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.

Helium Tokens are created by removing Heliums from circulation