Millions of compatible devices can use The People’s Network and each device requires Data Credits (DC) in order to send data to the Internet. Fixed in value, DC are created by ‘burning’ HNT, reducing the total supply to achieve a Burn and Mint Equilibrium. The more devices using DC, the more HNT will be burned.
Helium’s wireless network based on LoRaWAN is best suited for low-power scenarios like sending data to and from sensors using low-cost radio waves, eliminating reliance on more costly networks like cellular and WiFi. It’s fully peer to peer and leverages a robust network of hotspots connected to the network. With just 100 to 200 hotspots, the network can usually cover most cities. In return for hosting hotspots, hosts can earn $HNT for providing access to the LongFi network.
How are Tokens Earned?
Hotspots earn HNT for building and securing network infrastructure and transferring device data. The amount of HNT distributed to Hotspots depends on the type of “work” they perform based on the value to the network. This validation of network contribution is accomplished by a new work algorithm called Proof-of-Coverage (PoC).
To participate in PoC there must be multiple Hotspots at least 300 meters apart in an area, but still within range of each other (up to many miles depending on environment). Single Hotspots earn less as they can only issue Challenges over the internet, and can’t participate in Proof-of-Coverage. After the first year, distribution amounts adjust.
How do I change HNT to normal currency or vice versa?
We recommend using Binance.us which allows HNT/USD trades or you can use Binance.com to exchange HNT into Bitcoin and then from Bitcoin into GBP, EUR or other currencies. However other exchanges are also available.
