The world of cryptocurrency continues to expand beyond digital money, reaching into real-world applications like decentralized wireless networks and the Internet of Things (IoT). Among these innovative projects, Helium (HNT) stands out as a pioneering force. Built on the high-performance Solana blockchain, Helium reimagines how devices connect by enabling a community-powered wireless network. This guide unpacks everything you need to know about HNT, its ecosystem, tokenomics, and practical steps to get involved—without overwhelming jargon.
What Is the Helium Network?
The Helium Network is a decentralized wireless infrastructure designed to support low-power IoT devices such as sensors, trackers, and smart city tools. Unlike traditional telecom providers that rely on centralized towers and expensive hardware, Helium leverages a peer-to-peer model where individuals contribute coverage using small devices called Helium Hotspots.
These hotspots function like mini cell towers, providing long-range wireless connectivity using protocols like LoRaWAN and 5G. In return for sharing their bandwidth and extending network coverage, hotspot operators earn cryptocurrency rewards—primarily in HNT and subnetwork tokens like IOT and MOBILE.
This decentralized approach not only reduces costs but also increases accessibility, especially in underserved or remote areas.
👉 Discover how decentralized networks are reshaping connectivity in 2025.
Understanding HNT: The Heart of the Helium Ecosystem
HNT, or Helium Network Token, is the native cryptocurrency of the Helium Network. Originally launched on its own blockchain, HNT migrated to Solana on April 18, 2023, to benefit from faster transaction speeds, lower fees, and deeper integration with decentralized finance (DeFi) applications.
HNT serves three core functions within the ecosystem:
1. Incentivizing Network Growth
Hotspot owners are rewarded with HNT for validating coverage and transferring data. This Proof-of-Coverage (PoC) mechanism ensures that hotspots are genuinely contributing to network expansion and aren’t just running in isolated locations.
2. Facilitating Data Transfer
When an IoT device sends data across the network—such as a temperature reading from a farm sensor—it pays a small fee in HNT. A portion of this fee is burned (permanently removed from circulation), creating deflationary pressure that can help support long-term value.
3. Future Governance Potential
While still evolving, HNT is expected to play a role in decentralized governance. Token holders may one day vote on proposals related to upgrades, funding allocations, and policy changes—giving the community direct influence over the network’s direction.
Exploring Helium’s Subnetwork Tokens
Beyond HNT, the Helium ecosystem includes specialized tokens tailored to specific use cases. These are not standalone cryptocurrencies but rather utility tokens pegged to HNT.
IOT Token (IOT)
The IOT token powers the Helium IoT network, which supports low-bandwidth devices using LoRaWAN technology. Hotspot operators earn IOT tokens based on data transferred and participation in Proof-of-Coverage challenges. These tokens can be redeemed 1:1 for HNT through a burn-and-mint mechanism.
Crucially, IOT is not traded on exchanges—its sole purpose is to streamline micropayments for data transmission while rewarding contributors fairly.
Helium Mobile Token (MOBILE)
Designed for the 5G mobile network layer, MOBILE incentivizes both hotspot operators and mobile users. Phone users who enable location tracking ("Discovery Mapping") help identify coverage gaps and earn MOBILE tokens in return. Similarly, hotspot owners providing 5G coverage also receive rewards.
Like IOT, MOBILE tokens can be converted into HNT via redemption, aligning incentives across all participants.
Why Did Helium Migrate to Solana?
The shift from Helium’s original blockchain to Solana was a strategic move driven by performance and scalability needs.
Key Advantages of Solana Integration
- Faster Transactions: Solana processes thousands of transactions per second (TPS), enabling near-instant settlement of rewards and data fees.
- Lower Costs: Minimal gas fees make microtransactions viable—critical for IoT applications involving frequent small payments.
- DeFi Compatibility: As an SPL token (Solana Program Library), HNT can now be used in lending platforms, liquidity pools, and yield farms across Solana’s thriving DeFi landscape.
- Developer Ecosystem: Access to Solana’s robust developer tools encourages innovation and third-party integrations.
This migration has positioned Helium for broader adoption and long-term sustainability in a competitive Web3 environment.
👉 See how blockchain migration boosts performance and user rewards.
HNT Tokenomics: Supply and Distribution
Understanding token distribution helps assess scarcity, utility, and long-term value potential.
- Total Supply: 223 million HNT
- Mining Rewards: Distributed over time through network activity
Distribution Breakdown:
- 35% to Hotspot Infrastructure: Rewarded to operators who provide wireless coverage
- 30% to Network Data Transfer: Allocated for burning during data transactions
- 35% to Helium, Inc. and Early Investors: Supports development, marketing, and operations
The gradual release of tokens through mining ensures sustainable growth rather than immediate inflation. Additionally, the burn mechanism tied to data usage introduces deflationary dynamics that could enhance scarcity over time.
How to Acquire and Use HNT
While you can’t directly mine HNT with consumer hardware anymore, there are several ways to obtain it:
Option 1: Set Up a Helium Hotspot
Purchase a compatible LoRaWAN or 5G hotspot device (from brands like Bobcat, Nebra, or SenseCAP), set it up at home or in your business, and start earning HNT passively based on your contribution to network coverage.
Option 2: Buy HNT on Crypto Exchanges
HNT is listed on major exchanges including OKX, where you can trade SOL or stablecoins for HNT.
Option 3: Swap SOL for HNT via Wallets
Using a non-custodial wallet like Phantom or Trust Wallet:
- Deposit SOL
- Use the built-in swap feature
- Exchange SOL for HNT (SPL token)
- Store securely or stake for potential yield
👉 Learn how to securely store and grow your HNT holdings today.
Frequently Asked Questions (FAQ)
Q: Can I still earn HNT without buying a hotspot?
A: Yes. While hotspot ownership is the primary way to earn HNT passively, you can also buy it directly on exchanges or participate in community initiatives that distribute tokens.
Q: Is HNT an ERC-20 or SPL token?
A: Since the April 2023 migration, HNT exists exclusively as an SPL token on the Solana blockchain. There are no ERC-20 versions in circulation.
Q: What devices work with the Helium Network?
A: Any LoRaWAN-enabled sensor (e.g., environmental monitors, asset trackers) or 5G mobile device can utilize Helium’s infrastructure depending on the subnetwork.
Q: How often are HNT rewards distributed?
A: Rewards are calculated daily but may vary based on network activity, location quality, and uptime.
Q: Can I stake HNT for passive income?
A: Not natively within Helium itself, but you can use DeFi platforms on Solana to provide liquidity or lend your HNT for yield.
Q: Is the Helium Network secure?
A: Yes. It uses cryptographic proofs (Proof-of-Coverage) and decentralized consensus mechanisms to prevent fraud and ensure reliable operation.
Final Thoughts
Helium (HNT) represents a bold fusion of blockchain technology and real-world utility. By decentralizing wireless infrastructure, it empowers individuals to become active participants in building global connectivity—while earning crypto rewards in the process.
With its foundation now strengthened on Solana, expanded subnetworks (IoT and Mobile), and clear economic design, Helium is well-positioned to play a significant role in the future of Web3 and smart ecosystems.
Whether you're interested in earning crypto through hardware participation or investing in innovative infrastructure projects, HNT offers a compelling entry point into the world of decentralized networks.
Core Keywords: Helium (HNT), HNT token, Helium Network, IoT blockchain, Solana migration, decentralized wireless network, Proof-of-Coverage, subnetwork tokens