The world of decentralized technology continues to expand, and one of the most innovative projects at the intersection of blockchain and real-world infrastructure is Helium. Known as The People’s Network, Helium reimagines how wireless connectivity is built and maintained—by empowering individuals to contribute to a global, community-owned network. Built on the high-performance Solana blockchain, Helium supports Internet of Things (IoT) devices and 5G mobile connectivity through tokenized incentives.
This article explores how Helium works, its underlying technology, token ecosystem, and governance model—offering a comprehensive look at one of the most ambitious decentralized infrastructure projects today.
The Origins of Helium: A Community-Driven Vision
Founded in 2013 by Amir Haleem, Shawn Fanning, and Sean Carey, Helium was conceived with a bold mission: to democratize wireless connectivity for IoT devices. Traditional networks are controlled by telecom giants, but Helium flips this model by allowing anyone to deploy hotspots and earn rewards for providing coverage.
The breakthrough came in 2019 with the launch of the Helium Hotspot, a physical device that uses the LongFi protocol—a combination of LoRaWAN’s long-range communication and blockchain-based verification. Users who set up hotspots not only extend network coverage but are also rewarded in HNT tokens, creating a self-sustaining ecosystem driven by economic incentives.
How the Helium Network Works
At its core, Helium is a decentralized network of wireless hotspots that provide long-range, low-power connectivity for IoT devices and high-speed 5G for mobile users. The network relies on a unique consensus mechanism called Proof-of-Coverage (PoC), which verifies that hotspots are genuinely providing wireless coverage in their claimed locations.
In April 2023, Helium completed a major technical milestone by migrating to the Solana blockchain via HIP70. This move significantly improved scalability, reduced latency, and enabled faster transaction processing—critical for supporting large-scale IoT and mobile applications.
Key Features of the Network:
- Decentralized ownership and operation
- Token rewards for coverage provision
- Support for both LoRaWAN (IoT) and 5G (Mobile)
- High scalability via Solana integration
- Transparent governance through community voting
The migration also paved the way for advanced PoC algorithms and better support for high-demand applications like smart cities, asset tracking, and decentralized mobile internet.
Core Technologies Behind Helium
LoRaWAN on Helium: Decentralizing IoT Connectivity
Unlike traditional LoRaWAN networks managed by centralized entities, Helium enables independent ownership of gateways (hotspots) and network servers. This allows multiple network operators to run their own servers on the same public infrastructure—a feature known as multi-tenancy.
In 2023, Helium launched the OpenLNS Initiative, opening up more options for developers and enterprises to deploy private network servers while remaining compatible with the public Helium IoT network.
Organizationally Unique Identifier (OUI)
An OUI (Organizationally Unique Identifier) is a registered identity on the Helium blockchain that facilitates communication between network servers and end devices. Each LoRaWAN Network Server is assigned an OUI, and only authorized libp2p addresses can manage state channels on its behalf.
Devices are identified using AppEUI and DevEUI, which are mapped to OUI addresses. This system allows efficient routing and multiplexing of data from thousands of devices using cryptographic integrity checks.
Helium Mobile: Crypto-Incentivized 5G
Helium Mobile extends the same decentralized philosophy to mobile connectivity. By deploying 5G-CBRS and WiFi hotspots, individuals can contribute bandwidth and earn MOBILE tokens. Subscribers to Helium Mobile become partial owners of the network, earning rewards simply by using their phones on the network.
One standout feature is data privacy—Helium Mobile does not sell user data to advertisers or third parties, aligning with growing consumer demand for ethical data practices.
The Helium Token Ecosystem
Helium operates a multi-token economy designed to align incentives across different network layers.
HNT – The Native Utility Token
HNT is the primary token of the Helium network, originally distributed at a rate of 5 million tokens per month. With the implementation of HIP-20, a two-year halving schedule was introduced, capping the total supply at 223 million HNT.
Initial distribution (Year 1):
- 35% to Helium Inc. and investors
- 30% for network data transfer rewards
- 35% for Hotspot infrastructure contributors
HNT serves as the backbone of the ecosystem, used for governance, staking, and generating Data Credits.
IOT Token – Fueling the IoT Network
Launched via HIP-52, the IOT token powers the Helium IoT subnetwork. After the Solana migration on April 18, 2023, LoRaWAN hotspots began mining IOT tokens through data transmission and Proof-of-Coverage challenges.
- Maximum supply: 200 billion IOT
- Halving cycle: Every two years
- First year started: August 1, 2022
Token holders can stake IOT to gain voting rights in the IoT SubDAO, influencing network upgrades and funding decisions.
MOBILE Token – Powering Decentralized 5G
The MOBILE token, introduced through HIP-53, incentivizes participation in the 5G network. It is mined by 5G-CBRS and WiFi hotspots based on data transfer volume and verified coverage.
- Maximum supply: 230 billion MOBILE
- Pre-mined at launch: 50 billion (allocated to Network Operations Fund)
- Halving cycle: Every two years
- First year began: August 1, 2022
Like IOT, MOBILE supports decentralized governance via the Mobile SubDAO.
Data Credits (D.C.s) – Paying for Network Usage
Data Credits are non-transferable, USD-pegged utility tokens used to pay for data transmission on both IoT and Mobile networks. They are generated by burning HNT at a fixed rate (1 HNT = 100,000 D.C.s), ensuring price stability.
Use cases include:
- Paying for data packets from devices
- Onboarding new hotspots
- Verifying location authenticity
Because Data Credits cannot be traded or resold, they prevent speculation while maintaining predictable costs for developers and enterprises.
Governance in the Helium Ecosystem
Helium is governed by its community through a transparent, on-chain voting system powered by token staking.
Helium Improvement Proposals (HIPs)
Anyone in the ecosystem can submit a Helium Improvement Proposal (HIP) to suggest changes to the protocol. These proposals cover technical upgrades, economic models, or governance rules.
HIPs are stored in a public repository managed by the Helium Foundation, where token holders vote by locking their HNT. A proposal requires a two-thirds supermajority to pass.
👉 See how blockchain governance empowers users—learn about decentralized decision-making in action.
veHNT: Voting Power Through Staking
Through HIP-51, HNT holders can convert their tokens into veHNT (vote-escrowed HNT) by locking them for a period between 1 week and 4 years. The longer the lock-up, the higher the voting weight multiplier—encouraging long-term commitment.
Benefits of veHNT:
- Increased influence in governance votes
- Eligibility for rewards from SubDAO emissions
- Ability to delegate voting power to SubDAOs
SubDAOs: Specialized Governance Networks
Helium supports multiple autonomous subnetworks called SubDAOs, each focused on a specific use case:
IoT SubDAO
Dedicated to advancing IoT applications such as environmental sensors, asset trackers, and smart city solutions. Participants stake veIOT to vote on funding proposals and technical upgrades.
Mobile SubDAO
Focused on expanding decentralized 5G coverage. veMOBILE holders govern spectrum usage, reward distribution, and partnership strategies.
Users can delegate their veHNT to either SubDAO and earn a share of that network’s token emissions—creating a flexible, multi-layered incentive structure.
Frequently Asked Questions (FAQ)
Q: What is Helium used for?
A: Helium provides decentralized wireless coverage for IoT devices via LoRaWAN and mobile connectivity via 5G. It rewards participants with crypto tokens for contributing infrastructure.
Q: Is HNT built on Solana?
A: Yes. Since April 18, 2023, Helium has operated on the Solana blockchain following HIP70, improving speed, scalability, and cost-efficiency.
Q: How do I earn HNT or IOT tokens?
A: You can earn tokens by setting up a compatible hotspot (LoRaWAN or 5G), providing verifiable wireless coverage, and participating in Proof-of-Coverage challenges.
Q: What are Data Credits used for?
A: Data Credits pay for data transmission on the network. They are burned from HNT at a fixed rate and cannot be traded—ensuring stable pricing.
Q: Can I participate without buying hardware?
A: Yes. You can stake HNT to obtain veHNT and participate in governance or delegate to SubDAOs to earn rewards without running a physical hotspot.
Q: How often do HNT, IOT, and MOBILE halve?
A: All three tokens follow a two-year halving schedule to control inflation and ensure long-term sustainability.