Helium (HNT) is mined and distributed to Hotspot Owners and the Founders' Reward.
There is no pre-mine of Helium, and every month approximately 5,000,000 new Helium are minted.
Helium Token Distribution over Time
The distribution of Helium changes over time to align incentives with the needs of the network.
In the early days, a higher proportion of Helium is allocated to Hotspot owners for building and securing coverage.
As the network grows, Hotspots earn more for transferring device data on the network while the Founders' Reward earns less. After 20 years, distributions no longer adjust and remain fixed.
Annual Change: -0.05%
Hotspots are chosen by the network to issue challenges, encrypted messages, over the Internet to a target group of Hotspots. Challenges are used by Proof-of-Coverage to validate wireless coverage.
Data Credits are the only payment accepted to send data over the Helium network.
Data Credits allow users to transfer bytes of data via the LongFi wireless protocol and are used for blockchain transaction fees. The price of Data Credits is fixed in USD. Like pre-paid cellphone minutes or airline miles, Data Credits are non-transferrable, and can only be used by their original owner.
To acquire Data Credits, network users convert Helium or obtain them from a Helium owner. Any Helium converted to Data Credits is permanently removed (“burned”) from the circulating supply.