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A Beginner's Guide to Helium (HNT)
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In Brief
Explore The Helium Network Token (HNT), the Solana-based native cryptocurrency of the Helium Network.
The crypto world boasts thousands of crypto projects with diverse applications. In Web3, the Internet of Things (IoT), however, remains largely untouched and this is where the Helium Network and its native cryptocurrency, HNT, stand out. With a vision to revolutionize IoT connectivity and data transmission, Helium presents a unique proposition in the crypto space.
Built on the Solana blockchain, Helium Network introduces a novel approach to incentivizing wireless infrastructure and fostering the Internet of Things (IoT) ecosystem. This beginner's guide aims to explore Helium (HNT) by providing an overview of its core concepts.
Before You Get Started
Before you explore HNT in more detail, it’s important to remember that you can manage HNT using Trust Wallet.
You can download Trust Wallet as a mobile app, or you can install the Trust Wallet Extension for your desktop browser.
The Helium Network Overview
The Helium Network is a project carving a unique niche in the cryptocurrency and internet of things (IoT) space. The Helium project aims to create a decentralized wireless network, fundamentally changing how devices connect and transmit data. Helium aims to transform traditional telecommunications by providing a secure, scalable, and cost-effective solution for IoT device connectivity.
Imagine a world where internet access isn't solely provided by traditional telecom giants, but also by a network of everyday people sharing their wireless coverage. This is the essence of the Helium Network. Users can participate by setting up special devices called Helium Hotspots, which extend the network's reach. Helium’s innovative approach enables a robust and reliable wireless network that extends far beyond traditional Wi-Fi or cellular coverage areas.
What is HNT?
The Helium Network Token (HNT), is the native cryptocurrency of The Helium Network. HNT is specifically designed to function within the Helium ecosystem. While HNT is used to power transactions, its purpose extends further far beyond just powering transactions. Here's how:
Incentivizes network growth
HNT acts as a reward system, distributed to users who operate Helium Hotspots. These Hotspots act as mini-towers, extending the network's reach. Hotspot owners are rewarded with HNT tokens for providing wireless coverage. This incentivizes participation and fuels the network's continuous expansion.
Facilitates data transfer
HNT is used to pay for data transfer across the Helium Network. When devices send and receive data packets, they use HNT to pay for the service. A small amount of HNT is burned with each data transfer. This mechanism helps control the overall supply of HNT and incentivizes efficient resource allocation within the network.
Governs the network
While the specific implementation details are still evolving, HNT is envisioned to play a role in the future governance of the Helium Network. Token holders may eventually have a say in network upgrades and key decision-making processes.
Helium Subnetwork Tokens
While HNT takes center stage in the Helium Network, there are other token types that play specific roles within the ecosystem. IOT Token (IOT) and Helium Mobile Token (MOBILE) are designed to facilitate specific use cases within the Helium Network and are ultimately backed by and redeemable for HNT.
IOT Token (IOT)
IOT is the protocol token of the Helium IoT Network. IOT was introduced to the Helium Network through the community proposal HIP-52. The first IOT tokens were minted following the Solana migration. The IOT token is mined by LoRaWAN Hotspots through both data transfer proceeds as well as Proof of Coverage.
Devices on the network that transmit IoT data (like sensor readings) use IOT tokens to pay for the service. IOT tokens themselves, however, aren't traded on exchanges. Instead, they are earned by Hotspot owners who provide the coverage for these data transfers, and then redeemable for HNT.
Helium Mobile Token (MOBILE)
The Helium Mobile Token (MOBILE) is the protocol token of the Helium Mobile Network. It was introduced to the Helium Network through the community proposal HIP-53. MOBILE can be earned by both Hotspot operators and phone users. Hotspot owners providing network coverage and phone subscribers participating in "Discovery Mapping" (location tracking) can receive MOBILE tokens. This location tracking helps determine where new Hotspots are needed.
HNT and the Solana Ecosystem
The Helium Network migrated its token (HNT) to the Solana blockchain on 18 April 2023. The main reasons for this move include:
Scalability and speed: The Helium Network was experiencing limitations with its own blockchain, particularly regarding transaction speed and handling a growing network. Solana boasts superior scalability compared to the previous blockchain, enabling faster and cheaper transactions on the Helium Network. Fast and affordable transactions are crucial for a network aiming for mass adoption.
Enhanced DeFi integration: By joining the Solana ecosystem, HNT gained access to a thriving Decentralized Finance (DeFi) space. This opens doors for HNT holders to explore various investment opportunities and liquidity options, potentially increasing its overall value and utility.
Expanded utility: Migrating to Solana allows HNT to become compatible with platforms built on the Solana standard (SPL). This paves the way for new integrations and functionalities within the wider crypto world, fostering innovation and potential use cases beyond the Helium Network itself.
HNT Tokenomics
Total Supply: 223 million HNT.
Distribution
30% network data transfer: This portion rewards users who transfer data on the network. 35% hotspot infrastructure: A significant portion goes to Hotspot operators, who contribute to network coverage. 35% Helium, Inc. and investors: This allocation supports the development and ongoing operations of the Helium Network.
How to Buy SOL Using Trust Wallet
You can buy crypto, including SOL, using Trust Wallet, via our trusted partners. Here’s how:
Select “Buy” from the home screen.
Search for “Solana” or “SOL” and select it.
Choose the currency you want to use, then enter the amount of SOL you want to purchase.
Select the third party provider & payment method you’d like to use.
Select the Buy button and complete the remaining steps.
How to Deposit SOL to Your Trust Wallet Address
You can deposit SOL from another wallet or from a centralized exchange. Here’s how to deposit SOL:
Select “Receive” from the home screen.
Search for your “SOL,” and select it.
From here, you have two options. You can either:
Copy your deposit address and use that on your exchange account or other Solana wallet to send funds to.
Use the “Deposit from exchange” option to deposit crypto seamlessly from your exchange account.
How to Swap SOL for HNT Using Trust Wallet
You can easily swap SOL for HNT using Trust Wallet. Once you have SOL in your wallet, here’s what you need to do:
Open the Trust Wallet app on your mobile phone.
Click “Swap” on the bottom left side of your screen.
Change the “From” network to Solana and choose SOL as your token
Change the “To” network to Solana and choose HNT as your token.
Enter the amount of SOL you would like to swap.
Click “Continue.”
Remember that in addition to HNT, Trust Wallet lets you manage and interact with 10M+ crypto assets across 100+ blockchains. Download the latest version of Trust Wallet today.
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Note: Any cited numbers, figures, or illustrations are reported at the time of writing, and are subject to change.