
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:
2023-03-10
Tags:
Proof of Coverage
Ticker:
HNT
Token Strength.
Token Utility:
DCs are used for: - Transfer of data on the network (eg from sensor to server); - Transaction (eg sending HNT from one wallet to another); - Staking (becoming a validator); - Infrastructure (adding a hotspot, asserting hotspot location) - Blockchain routing fees (buying OUI/Subnet blocks) HNT is used to reward wireless coverage providers.
Demand Driver:
Demand is driven by all the users of the system. To transfer data across the network for your wireless system (phone, IoT, etc…), you need to use Data Credits, which are created by burning HNT and are non-transferable. To add a Hotspot to the blockchain, you also need to use Data credits. To become a validator of the system and be able to earn up to 6% of the emitted tokens, you need to stake HNT.
Value Creation:
Individuals can purchase a hotspot to be part of a network that provides connectivity to others around them, whether for IoT (eg. sensors for agriculture, smart cities, …) or phone (4G/5G). It creates better and cheaper coverage by leveraging individuals instead of relying on centralized Internet Service Providers. The more products require connectivity, the more value the protocol has.
Value Capture:
HNT tokens are emitted and rewarded to the Hotspots, network validators, and investors. Anyone who wants to use the Helium network needs to pay to do so in Data Credits (1 DCs per 24 bytes). The DCs being USD-pegged, this cost doesn’t change over time (1 DC = $0.00001) and needs to be paid based on the device usage, not an annual/monthly fee.
Business Model:
The token economic structure is a Burn-And-Mint Equilibrium. Security token holders (the team & investors) receive 35% of all mined tokens (ratio decreases with time). The rest of the tokens are distributed to Hotspots (providing coverage/verifying the Network). HNT are burned (to create Data Credits) to use the network. This creates upward pressure on the price of HNT, which benefits the holders.
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Protocol Analysis.
Problems & Solutions | - The need for connectivity is constantly increasing, which means Helium’s market and opportunities will get only bigger. - 5G’s range is more limited than 4G and previous technologies and requires a lot more antennas to be available everywhere. This cost is hardly bearable for centralized ISP, but decentralizing the network allows for a dispersion of the infrastructure cost. |
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Predecessors |
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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Allocation and Emission.
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Resources.
Author.
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