The Helium community is currently considering a significant change through HIP 138, a proposal aiming to simplify the network by phasing out the subnetwork tokens, IOT and MOBILE. If approved, the network would return to rewarding participants directly with HNT, the primary Helium token.
Why Is HIP 138 Proposed?
The proposal seeks to address the complexity introduced by having multiple tokens within the Helium ecosystem. Many new and existing participants find the three-token system confusing, which can hinder broader adoption and engagement. By consolidating rewards into a single token, HNT, the network aims to be more accessible and easier to understand.
Key Facts About HIP 138
- Increase in MOBILE Rewards: Participants in the MOBILE network could see a significant increase in the HNT equivalent value of their rewards. By receiving HNT directly, the value of their rewards may effectively double compared to the current MOBILE token rewards.
- Decrease in IOT Rewards: Based on current conditions, IOT network participants might experience an immediate reduction of around 15% in the HNT equivalent value of their rewards if the HIP were implemented today. However, since implementation will take at least two months, and considering the continuous decline of IOT’s value relative to HNT, the actual decrease in the HNT equivalent value of rewards at the time the HIP goes live may be much smaller.
- Staking Dynamics: The new structure may incentivize more participants to stake in the MOBILE network due to higher potential benefits. This shift could lead to a further decrease in IOT rewards over time as more rewards are allocated to MOBILE stakers.
- Stabilization of IOT Value: While the rewards value for IOT hotspots decreases, this HIP appears to stabilize the IOT value to a fairly fixed rate of HNT, which benefits those holding IOT. By halting further declines in the IOT token's value, this change offers more predictability for IOT holders.
- Potential Positive Impact on HNT: These changes could strengthen HNT's position and value in the future, benefiting the overall network and its participants.
- Concerns About the Proposal Process: Some community members feel that the HIP was rushed and lacked sufficient analysis and modeling before going to a vote. While preliminary discussions about Helium v3 occurred, the detailed action plan was only presented in the HIP, which had about eight days of discussion—shorter than usual for such significant proposals.
- Communication Issues: The initial statements in the Helium Foundation's blog post about IOT rewards were found to be incorrect and potentially misleading, suggesting that IOT hotspot rewards would increase. This was corrected two days before the end of the voting period, but some details, particularly about staking impacts, remain unclear.
While not directly about HIP 138, some people find Nova Labs’ recent strategic shift relevant to the discussion. Nova Labs has indicated a focus on the MOBILE and WiFi networks, citing greater potential value in these areas. This pivot is understandable, as startups often refine their strategies based on market dynamics and growth opportunities. By openly sharing this shift, Nova Labs has provided transparency, allowing the community to align with their updated direction.
What Does This Mean for Helium Participants?
The proposed changes have significant implications for all stakeholders in the Helium network. It's crucial for participants to understand the potential impacts to make informed decisions. Whether you operate hotspots, stake tokens, or participate in network governance, HIP 138 could affect how you engage with the network.
Call to Action
We encourage all members of the Helium community to:
- Educate Yourself: Read HIP 138 in full to understand the detailed proposal and its potential effects.
- Join the Discussion: Engage with other community members, share your thoughts, and ask questions on the official Helium Discord server.
- Vote: Exercise your right to vote on the proposal. Your participation is vital in shaping the future of the Helium network.
Official Helium Discord Invitation Link:
discord.gg/helium
Voting Links (You Need to Vote on Each Network Separately):
Additional Resources
Helium Foundation Blog Post: HIP 138 TL;DR: HNT is Back! Return to Simplicity
Full HIP 138 Proposal: Read the Full Proposal on GitHub
Conclusion
HIP 138 proposes a significant shift in the Helium network's tokenomics, aiming to simplify the ecosystem and potentially enhance the value of HNT. Nova Labs' decision to focus on MOBILE and WiFi networks is understandable, as it reflects a strategic move towards areas with greater growth potential. Their transparency in sharing this shift benefits the community by aligning expectations and encouraging collaboration.
As with any substantial change, it's essential for community members to consider all aspects of the proposal. We urge you to participate actively in the discussion and voting process to help determine the best path forward for the Helium network.
This blog post is intended to inform and encourage thoughtful participation in the Helium community's decision-making process. We remain neutral and aim to present the facts to support an informed and engaged community.
