Helium Network A distributed public network for IOT (internet of things)
The Helium Network is one of coolest projects underway, where blockchain technology crosses the telecommunication industry. Individuals around the world can host a mining device which broadcasts a Long-Fi radio signal for IOT. Hosts earn rewards in the HNT cryptocurrency, the helium network native token. The miner device connects to the hosts home internet, and requires the equivalent of a lightbulb of electricity to run. A miner device hotspot can be purchased from third party manufacturers for approximately $500 USD. Here is list of manufactures that are approved by the Helium community Helium Network.
The popular manufacturers such as bobcat miner and linxdot miner currently have a waitlist for 3 months Helium Network. While they continue to add more manufacturers, it appears the demand is outpacing the supply. In addition, with the recent roll out of 5G coverage, this adds an additional capability for the network, and new feature for manufacturers to add. Currently the only manufacturer making 5G devices is FreedomFi and they stopped accepting new orders until further notice.
As of this writing, the price of HNT is $19 with an all time high of $26 this past August. The circulating supply is 99,891,437 and holds a market capitalization of 1,981,147,673. The maximum supply is 223,000,000 and is programmed with a mint coin halving every two years. The coin was minted in July 2019 beginning with 60,000,000 (5,000,000 every month) and was recently reduced to 2,500,000 this past August 2021, on its first two year anniversary. There was no premine or initial coin offering. To use the network participants need to burn HNT tokens for Data Credits. One dollar worth of HNT token equals 100,000 data credits Helium Network.
This HNT to DC relationship is based on a design commonly called a burn and mint equilibrium and is intended to allow for the supply of HNT to respond to network usage trends such that, when equilibrium is found, the amount of HNT that exists remains static month on month. The amount of Data Credits produced by burning HNT will move up and down based on the USD price of HNT as reported by the HNT Oracles. To explore this concept further, I direct you to the Helium doc page, where this excerpt can be found.
In short, the HNT token protocol objective is to incentivize hosts to maintain network coverage while also having counter inflationary tokenomics. At the early stage of the project, minting rewards are highest and decline as adoption increases, and token price increases (similar to Bitcoin). There are currently 234,827 miners deployed in 20,691 cities across 141 countries. To see a mapping, be sure to take a look here. Depending on the host location as it relates to other hosts in close proximity and hotspot utilization, will determine the HNT rewards. One can also stake HNT and become a validator, this requires 10,000 HNT tokens.
Who uses the HNT network?
Typically devices such as GPS trackers, environmental sensors, weather meters, and other technology that only need to transmit and share small bits of information. Industries such as healthcare, trucking, agriculture and many others make use of IOT devices for live data and decision making. This network is superior and cheaper to the traditional telecommunication systems as its by the people, available to anyone, and is pay per usage. As technology advances more and more items in our lives will be “smart” and communicate with a digital network. As this trend continues we will see not just institutional demand but also retail demand for network usage. Not every industry can be disrupted with blockchain technology and distributed utility in such a successful manner as the Helium Network. I encourage you to check your local coverage area and order a miner to participate in this great movement.
Understanding the financial implications of participating in innovative projects like the Helium Network is crucial, especially when it comes to crypto accounting. OnChain Accounting specializes in navigating the complexities of crypto transactions, ensuring accurate financial reporting for participants in such networks. With Helium Network’s unique model of earning HNT cryptocurrency through hosting mining devices, it is essential to have a professional crypto accountant reconcile these transactions. Our expertise in crypto accounting and cryptocurrency tax software aids in accurately tracking HNT rewards and their tax implications. Utilizing tools like crypto tax calculators, we provide clarity on crypto taxes, ensuring compliance with evolving tax regulations. This meticulous approach is vital for anyone engaging with advanced DeFi applications, safeguarding their financial interests while contributing to groundbreaking technological advancements.
I hope this article brought you value. Thank you for reading and sharing.
