As the world becomes increasingly digitalized, the cryptocurrency market has been booming. Among the new digital currencies emerging, Helium (HNT) has been gaining traction in recent years. In this article, we will provide a comprehensive guide to Helium’s tokenomics, including its distribution and circulation, to help you understand the currency’s inner workings. When the time comes, you’ll need to choose a trustworthy exchange like the bitcoin trader platform to purchase or sell cryptocurrencies.
What is Helium (HNT)?
Helium is a decentralized blockchain network designed to facilitate Internet of Things (IoT) connectivity. Its native cryptocurrency is the HNT token, which is used to pay for data transfer between devices on the network.
The Helium network operates on a Proof of Coverage (PoC) consensus algorithm, which rewards users who provide coverage to IoT devices with HNT tokens. This incentivizes users to deploy more hotspots, which in turn provides greater coverage for IoT devices.
HNT Token Distribution
The initial distribution of HNT tokens occurred through a series of token sales and airdrops, with a total of 223 million HNT tokens in circulation. Helium Inc., the company behind the Helium network, holds approximately 14% of the total token supply, with the remaining 86% distributed among users and investors.
The distribution of HNT tokens is divided into several categories, including:
- Early Backers and Founders: Helium’s founders and early investors received a portion of the initial HNT token supply.
- Community: A portion of the HNT token supply is distributed to the community through a variety of means, including airdrops and community grants.
- Mining: HNT tokens are distributed to miners who provide coverage to IoT devices on the Helium network through the PoC algorithm.
HNT Token Circulation
HNT tokens are used as a payment method for IoT device data transfer on the Helium network. The more IoT devices that are connected to the Helium network, the more HNT tokens are required for data transfer.
HNT tokens can be earned through mining or purchased on cryptocurrency exchanges. As the demand for HNT tokens increases, the value of the token is likely to increase as well. This can lead to a rise in the price of HNT tokens on exchanges.
In conclusion, Helium (HNT) is a decentralized blockchain network designed to facilitate IoT connectivity. Its native cryptocurrency, the HNT token, is used to pay for data transfer between devices on the network. The distribution of HNT tokens is divided into several categories, including early backers and founders, community, and mining. HNT tokens are used as a payment method for data transfer on the Helium network and can be earned through mining or purchased on cryptocurrency exchanges.
As Helium continues to gain traction in the cryptocurrency market, it is important to understand its tokenomics and inner workings. We hope that this comprehensive guide has provided you with the necessary information to better understand Helium’s distribution and circulation.