Back to HNT: What You Need to Know - Mapping Network

Back to HNT: What You Need to Know

The approval of HIP 138 marks a transformative shift in the Helium Network, returning HNT as the primary reward token across all activities. This decision simplifies the ecosystem, increases the utility of HNT, and enhances the overall user experience for Hotspot deployers, Helium Mobile subscribers, and token holders. Here's an in-depth look at what this change means for the Helium community.

What’s Changing?

Starting January 2025, the emission of MOBILE and IOT tokens will cease, and HNT will replace them as the sole reward token. This move is designed to:

  • Simplify the ecosystem: Reducing the complexity of multiple tokens creates a smoother user experience.
  • Enhance HNT utility: By consolidating rewards, HNT’s role in the network strengthens.
  • Streamline rewards: A unified reward structure supports a cohesive and efficient network.

Here’s how this impacts key stakeholders within the Helium ecosystem:

For Hotspot Owners

  • IoT Hotspots: As of January 2025, IoT Hotspots will transition from earning IOT tokens to earning HNT.
  • Mobile Hotspots: Similarly, Mobile Hotspots will shift from MOBILE rewards to HNT rewards.

This change ensures a consistent reward mechanism for all Hotspot deployers, aligning incentives across the network.

For Helium Mobile Subscribers

  • Reward Updates: Discovery Mapping and referral rewards will now be issued in HNT instead of MOBILE.
  • Bill Payments: HNT will become the default token for paying bills with crypto, although MOBILE payments will still be supported.

This transition enhances HNT's role in everyday transactions while maintaining flexibility for existing MOBILE holders.

For Token Holders

HNT Holders

Governance participation remains unchanged for now, but future updates will streamline subnetwork voting without requiring HNT swaps.

MOBILE and IOT Holders

  • No new emissions: After January 2025, no new MOBILE or IOT tokens will be emitted.
  • Token swapping: MOBILE and IOT tokens can be exchanged for HNT via the Helium Wallet or decentralized applications like Jupiter. Centralized exchanges will continue to support MOBILE custody, leaving holders to decide when and how to swap.

Key Questions Answered

What happens to governance?

Governance mechanisms will stay the same initially. However, the community is working on updates to improve governance processes, particularly for subnetworks.

What happens to unclaimed IOT or MOBILE tokens?

Tokens earned before January 2025 remain claimable as IOT and MOBILE. Wallet holders can convert these tokens to HNT at any time using supported platforms.

What will the IOT and MOBILE swap rates be?

The final swap rates will only be determined after emissions cease in January 2025 and HNT ceases flowing into network treasuries. Rates could fluctuate, so token holders are encouraged to stay informed and act based on their individual timing.

When should I swap MOBILE for HNT?

The MOBILE-to-HNT swap rate may improve leading up to August 2025, when additional HNT emissions to the Mobile Treasury end. Timing your swap depends on personal goals and market dynamics.

What can I do with my IOT and MOBILE tokens?

You can convert IOT and MOBILE tokens to HNT using the Helium App or decentralized applications like Jupiter. Tokens can also be transferred or exchanged depending on your needs.

Why This Change?

The Helium community initiated HIP 138 to simplify the network by consolidating rewards into a single token—HNT. This move reduces confusion for both new and existing users while bolstering HNT’s functionality and value.

For a deeper dive into the specifics of HIP 138, the proposal is available on GitHub.

Implementation Timeline

  • December 6, 2024: Initial emissions to the MOBILE treasury began.
  • January 2025: Transition to HNT rewards; MOBILE and IOT emissions cease. Preliminary MOBILE and IOT redemption rates become available.
  • August 1, 2025: Final HNT emissions to the Mobile Treasury end, establishing a fixed redemption rate for MOBILE holders.

Sources

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