Finance.Expert: HNT Tokenomics

HNT is the native cryptocurrency of the helium blockchain. HNT has a maximum supply of 223 million and there was no pre-mine and no ico.

Helium recently saw its first halving event which cut this annual emission down to 30 million. HNT's emission will continue to be cut in half every two years until the maximum supply is reached and at the current pace this should take about 50 years.

Newly minted HNT are divided between helium hotspots validators Helium INC and investors. The percentage of newly minted HNT that these participants earn will also change over time specifically. the amount of HNT given to the team investors and proof of coverage rewards will decline and the lion's. Share will be given to helium hotspots handling data requests from developers.

Now even though there was no ICO for HNT helium INC did sell security tokens to investors. HNT rewards earmarked for helium INC and investors are allocated according to how many security tokens they hold. So as a simple if helium INC holds 50 of helium's security tokens they will get 17.5 of all newly minted HNT that's half of the 35 that's currently allocated to that portion of the block reward pie.

This clever architecture allowed helium to raise over 145 million dollars from token sales without actually conducting any ICO's those investors just purchased the security tokens that guarantee them a portion of future block rewards.

Now HNT technically isn't used to pay for network fees all transaction fees on helium are paid in data credits including fetching data from devices connected to helium hotspots data credits are created by burning HNT and data credits are pegged to the us dollar at a ratio of one hundred thousand to one.

So this means that burning one dollar in HNT will create 100,000 data credits data credits are non-transferable and cannot be converted back to HNT. This makes HNT a deflationary cryptocurrency to ensure helium networks participants are sufficiently incentivized. After the last HNT coin is mined the helium community recently passed a proposal to enable net emissions. Now net emissions essentially involved taking a small portion of data credits and converting them back into HNT net emissions are currently 1 % per year and will rise when demand for data credits is low and fall when demand for data credits is high.