KEY TAKEAWAYS
- HIP 138 proposes using HNT as the sole reward token for all Helium networks, aiming to streamline the reward system.
- IoT and MOBILE network participants will transition to earning HNT, potentially increasing their earnings due to higher emissions.
- Existing IOT and MOBILE tokens can be converted to HNT, with no new tokens being created, ensuring a stable reward system.
- The proposal maintains current governance structures but encourages future governance considerations for subnetworks.
The Helium Network is poised for a significant shift as HIP 138 is ready for a vote. The proposal suggests reverting to HNT as the exclusive reward token for all networks, including IoT and MOBILE. This change aims to streamline the reward mechanism for builders supporting the Helium Network.
Under the proposed changes, IoT and MOBILE networks will remain operational, but HNT tokens will serve as the reward for all contributions. This move is expected to increase the amount of HNT earned by network participants compared to the current IOT and MOBILE tokens.
Impact on Hotspot Earnings
For IoT Hotspot owners, the implementation of HIP 138 means they will stop earning IOT tokens and begin earning HNT. The shift is designed to provide more HNT than the equivalent IOT due to increased emissions.
Similarly, Mobile CBRS or WiFi Hotspot owners will transition from earning MOBILE to HNT. Those who currently earn MOBILE for network mapping will also receive HNT instead, benefiting from the increased HNT emissions.
Token Conversion and Governance
Existing IOT and MOBILE tokens will not disappear. Instead, holders can convert these tokens to HNT using the Helium Wallet App. The proposal ensures that no additional IOT and MOBILE tokens will be created, and a treasury of HNT will remain for IOT and MOBILE holders.
Governance structures will remain unchanged with the adoption of HIP 138. However, the authors encourage subnetworks to consider governance changes in future proposals. Locked tokens will not be affected, and those earning IOT or MOBILE for delegating locked HNT will transition to earning HNT.
The approximately 4.2 million unissued HNT from the Helium L1 will gradually fund the MOBILE treasury and replace the MOBILE Operations Fund. This reallocation aims to support the network’s builders and enhance the reward system.
For more details on HIP 138 and to participate in the vote, visit the Helium blog here.
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