Helium
Helium is a blockchain project that aims to leverage a decentralized network of hotspots to provide wireless connectivity to internet users and the Internet of Things everywhere in the world. The tokens of this protocol are HNT (earned by hotspots for providing connectivity and securing the network) and Data Credits (USD-pegged coins minted by users through HNT-burn to use the network)
Categories:
DeWi
Updated:
2023-04-03
Tags:
Proof of Coverage
Ticker:
HNT
Token Strength.
Token Utility:
$HNT Wireless coverage providers are rewarded with HNT for contributing to the network by hosting hotspots that provide wireless coverage. HNT can also be used for transactions on the Helium network, such as sending HNT from one wallet to another. $DCs The Helium network allows for the transfer of data from sensors to servers, which can be used for various applications such as IoT devices and asset tracking. HNT can be used for staking to become a validator on the Helium network, which helps to secure the network and earn rewards. Users can add hotspots to the Helium network to provide wireless coverage and earn HNT as a reward. Asserting hotspot location is also possible with the Helium ne
Demand Driver:
Data transfer and Hotspot creation: Users of the Helium network require HNT to create Hotspots and use Data Credits for data transfer. The burning of HNT to create Data Credits ensures a constant demand for the token. Validator staking: HNT holders can become validators of the network, earning up to 6% of the emitted tokens. This incentivizes HNT holders to stake their tokens, reducing the circulating supply and increasing demand.
Value Creation:
Helium protocol's value lies in its ability to offer a decentralized wireless network, accessible worldwide without traditional internet service providers. Hotspot contributors earn HNT tokens, while Data Credits enable device internet access. This benefits all participants, creating a self-sustaining ecosystem. Helium has the potential to revolutionize wireless connectivity for the Internet of Things.
Value Capture:
Value accrual to token: HNT tokens are rewarded to Hotspots, validators, and investors as an incentive for contributing to the Helium network. The token's value is determined by supply and demand dynamics, with its price reflecting the market's perception of the network's value. Value accrual to protocol: Helium captures value through Data Credits (DCs), which are used to pay for network usage. As the demand for IoT connectivity grows, the protocol's treasury receives a portion of the DC fees, allowing it to capture value from the network's growth.
Business Model:
The business model for Helium Protocol: Revenue comes from: Transaction fees for Data Credits (HNT), sold by the network to users. Revenue is denominated in: HNT, is the native cryptocurrency of the Helium network. Revenue goes to: Hotspot operators who provide coverage/verification (65%) and security token holders (35%) receive a portion of mined tokens. The team and investors receive a decreasing ratio of mined tokens over time.
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Protocol Analysis.
| Problems & Solutions | Problem: Limited wireless connectivity in many areas and high costs for accessing the internet and using IoT devices. Solution: Helium's decentralized hotspot network allows individuals to provide connectivity and earn HNT tokens, while users can access the network by burning HNT to mint Data Credits, making it affordable and accessible. This encourages network growth and creates a self-sustaining ecosystem for wireless connectivity and IoT devices worldwide. |
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| Predecessors | Nodle (NODL) - A decentralized wireless network designed to connect IoT devices and provide location-based services. |
Investment Take
... coming soon
Tokenomics Timeline.
2013-07-01
Foundation
Helium Systems Inc. is founded by Shawn Fanning (Napster), Amir Haleem, and Sean Carey.
2017-01-01
Decision to use the blockchain technology
The company decides to use a blockchain protocol to make the project possible. Proof-of-Coverage will be used to secure the network.
2019-07-29
1st HNT produced
The first HNT was produced as part of the block 93.
2020-08-12
Launch of Data Credits (DCs)
Data Credits are launched and users and hotspots need to pay for fees. Up to this point, fees (staking, transfer, and transport fees) were covered by Helium to avoid inhibiting growth.
2020-11-18
HIP 20 is approved (Max Supply)
The approved proposal introduces HNT's max supply and “halvenings” which reduces the issuance of HNT every two years. It also introduces the concept of Net Emissions.
2021-04-27
HIP 27 is approved (5G)
Following the approval of HIP27, Helium announces a partnership with FreedomFi to help launch a consumer-owned 5G network.
2021-07-27
100,000 hotspots worldwide
Helium Network Reaches 100k Global Hotspots.
2022-02-19
Rebranding as Nova Labs Inc.
Helium Becomes Nova Labs After Raising $200M in Fresh Capital, bringing its total valuation at $1.2 billion.
2022-06-08
HIP51 is approved (Helium DAO to support additional networks)
Helium becomes a “network of networks”, opening the door for multiple network protocols and multiple tokens to exist in the ecosystem (eg LoRaWAN, VPN, Cellular, WiFi).
2022-09-22
HIP 70 is approved (Scaling the Helium Network through Solana)
Helium's tokens and governance, which used to be on Helium L1, will migrate to Solana in order to sustain growth. Proof-of-Coverage and Data Transfer Accounting will move to Helium Oracles.
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