HIP 138: Return to HNT

[hiptron]

HIP 138: Return to HNT

• Author: @ferebee, @JMF, @abhay
• Start Date: 2024-11-08
• Category: Economic, Technical, Governance
• Original HIP PR: #1119
• Tracking Issue: #1120
• Voting Requirements: veHNT Holders

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Summary

If approved and implemented, this proposal would phase out the subnetwork tokens introduced through HIPs 51, 52, and 53 (IOT and MOBILE), and the network would return to rewarding participants directly in HNT. Additionally, HNT emissions allocated to HST holders will end, and instead will augment the HNT issued to active Hotspot owners and network builders via the current Utility Score, effectively increasing the HNT available to reward ecosystem participants by over 40%. Finally, unissued HNT (approximately 4.2 million) from the Helium L1 will be used both to gradually fund the MOBILE treasury, and to replace the MOBILE Operations Fund delegated to the Helium Foundation.

Moving to a single token simplifies the Helium ecosystem, making it more understandable for current and future network builders, and more accessible to the crypto community at large. Using HNT as the sole reward currency also corrects the imbalances created by the treasury system. Specifically, MOBILE network participants would see immediate increases in the value of their rewards, while IOT participants’ rewards would continue to be supported post-halvening as the network grows through ongoing community investment.

Overall, this proposal would increase rewards for current and future participants of all networks.

Rendered View

https://github.com/helium/HIP/blob/main/0138-return-to-hnt.md

[4evermaat]

So who is against a unified token? I always thought a single token would be easiest and you must portion out rewards using fractional payouts of the single token.

[hardparker]

I'm against it. Unless the tokenomics can be transcribed 1:1 between HNT and any other tokens. The communities that support these ecosystems have been calling for sustainability and honor to the original tokenomics. To subsume these now back into HNT is pulling those rugs for everyone holding on the edges and tatters. Rewrite it to make it work for MOBILE supporters and IOT die hards and maybe. Otherwise, nah.

[hardparker]

#HIP 139 - Solidifying previous tokenomics in perpetuity. HNT, IOT, MOBILE and any subsequent issuances of token for helium network, nova labs and any extant supporters should permanently instantiate all previous tokenomic issuances, whitepapers, measures and algorithms to preserve those and any other subsequently issued tokens in perpetuity. Internal exchange treasuries for all tokens should be stocked to serve full issuance of any liquidity pools or other types of token debts to 100% of issuance value, with fully internal exchangeability with zero slippage and zero or nominal fee, preferably of the "free gas" variety, absorbed internally.

[Ixbay]

I'm against it. Unless the tokenomics can be transcribed 1:1 between HNT and any other tokens. The communities that support these ecosystems have been calling for sustainability and honor to the original tokenomics. To subsume these now back into HNT is pulling those rugs for everyone holding on the edges and tatters. Rewrite it to make it work for MOBILE supporters and IOT die hards and maybe. Otherwise, nah.

Thank you for speaking out against this. Couldn't agree with you more. I think this is a very sheisty maneuver against dedicated token holders that don't necessarily have equipment needed to participate in the network infrastructure and mining process. I myself do and am still opposed to it.

[4evermaat]

What is most interesting is that there are 3 coins in the first place. I'm really unclear why a single token wasnt used for the whole Helium Mobile ecosystem.

You are already using layer 2 network (Solana), which seems to be a solid L2 choice (confirmation speed, transaction fees, fungibility across exchanges, etc).

So Helium's tokens (HNT, IOT, MOBILE) are Layer 3 tokens. As the layers increase, the tokens become increasingly less fungible...even within the Helium Mobile network. So why 3 separate tokens for a Layer 3 project?

I dont see where the collective benefit to the general public looking to adopt Helium products/services outweighed the added complication of managing 3 separate tokens.
(other than speculative / get-rich-quick aspect).

Also, should there be a new name for the "unitoken"?

[waveform06]

What is most interesting is that there are 3 coins in the first place. I'm really unclear why a single token wasnt used for the whole Helium Mobile ecosystem.

You are already using layer 2 network (Solana), which seems to be a solid L2 choice (confirmation speed, transaction fees, fungibility across exchanges, etc).

So Helium's tokens (HNT, IOT, MOBILE) are Layer 3 tokens. As the layers increase, the tokens become increasingly less fungible...even within the Helium Mobile network. So why 3 separate tokens for a Layer 3 project?

I dont see where the collective benefit to the general public looking to adopt Helium products/services outweighed the added complication of managing 3 separate tokens. (other than speculative / get-rich-quick aspect).

Its described why in https://github.com/helium/HIP/blob/main/0051-helium-dao.md
And we were still on the Helium L1 blockchain at the time of the vote for multiple tokens.

[4evermaat]

Will look at the link.

And we were still on the Helium L1 blockchain at the time of the vote for multiple tokens.

In the Helium Ecosystem, you could technically think of new Helium tokens issued as L1. But in the larger CryptoCurrency ecosystem, Helium is a L3 coin.

Ethereum (ETH/ERC20) > Solana (SOL) > Helium (HNT/IOT/MOBILE) That's how I arrived at that. I was reminded of SOL when i had to add some to the HM wallet prior to being able to spend/send any HM tokens.

And if i used a Defi wallet, i might have had to add ETH to that wallet to process SOL based transactions, to send SOL to HM wallet.

Perhaps if a bonus SOL was issued to HM users shortly after account opening ($0.50-2), then the end user wouldnt need to think about the prior layers as much. As they could just send Helium tokens to other wallets right from the start, without needing to add SOL to the HM wallet first.
Perhaps the subject of a new HIP?

[Ixbay]

I think with he projects potential the most value and attention can be derived from the Mobile project remaining it's own independent token. Maybe combining the IOT and HNT as a unified token might simplify the scheme here enough to suffice without cutting the legs off of the Mobile token directly. With this consolidation as a possible test run to see what the community would think about a unified token before jumping fully into the deepend without a preserver. I just think the most potential could be derived from products remaining seprate. Speculation about the "increase in reward" to miners is only true if the Mobile token price doesn't increase in value despite sitting at a fraction of its all time high.

[bigboistinkums]

I'm confused, have read the HIP several times and still don't know the answers to a couple important questions I have:

What will Helium Mobile mapping activities earn if this passes, HNT?

And, Helium Mobile wifi indoor hotspots will transition to earn HNT for data, correct?

If we currently have Helium Mobile indoor wifi hotspots, will we have to flash those hotspots to update the firmware to earn HNT if, in fact, that is the case that we will be earning HNT from now on if HIP 138 passes?

Thank you for the dialogue

[Ottoguaroa]

HIP 138 is concerning. Supporters invested in the vision of HIP 51-53, and this sudden shift feels like it’s masking the true issue rather than addressing ‘complexity’ as the main reason. Transparency matters—people value honesty, and this change risks eroding trust.

[cintiafl]

I am concerned regarding the following "Specifically Helium Security Token (HST) holders are negatively affected by this HIP. HST holders are investors in, and early employees of, Nova Labs, Inc., who currently receive 30% of emitted HNT, decreasing every year to 15%. This HIP will redirect the approximately 11 Million remaining HNT scheduled to be emitted to HST holders directly to the rest of the network's participants." Why would HST holders agree to lose this benefit? If you take this benefit away, could HST holders sue HNT holders? Are HNT holders liable? Have HST holders being consulted? Are they willing to sign legally binding agreements to give up their rights?

[waveform06]

@cintiafl The HST Holders have been consulted all the way thru this HIP development.
They were the ones who requested their tokens get distributed direct to network deployers via the utility score rather than to the treasury as condition of supporting this HIP.

[cintiafl]

@waveform06 I would love to better understand why they would be willing to give up the benefit of 11 million HNT. Do they feel like the project would not survive without this? Or what is their reason?

[waveform06]

@cintiafl
It can be assumed that they believe that giving their future HNT earnings to people deploying the networks and improving the network and the value of their existing HNT tokens is a better option for them than not giving them away and having increased HNT quantity at a lower value.
They have already received I think its 85% of the tokens they could receive and the remaining 15% is spread over many years..

[vetheksenol]

If you valued the community, this project would be in the top 10 in marketcap. But you are always thinking about how we can screw the community. I never understood your switch to 3 tokens at the time. I understand mobile token, but why was iot token created? Now you're turning back. I don't trust you at all. I will say goodbye to you in the next bull. There is such a large community behind you. If you could build trust, things would be completely different for you and for the hotspot owners.

[gusosborne]

Market cap of MOBILE could easily 10x (again). I believe this is simply a way to steal the potential value from MOBILE and redirect it to HNT. Doing this right in the middle of a bull market seems like extremely poor timing, to say the least.

Someone will be profiting greatly from this transfer of potential value, and it's certainly not MOBILE holders.

[Rajkumar1538]

We don’t want HIP 138 approved and implemented. I liked $MOBILE and I took mobile simcard and using it from last 8 months. I did not see any issues. I also get mobile rewards when I do mapping.

Now all of a sudden introducing HIP 138 which will accumulate all coins to one coin is not right. What were they doing 1 year back when the market is shit? Now all of sudden they want only one coin which is HNT and what about people who believed in and been on this $MOBILE for longtime. Somewhere I read “contributions on Mobile would earn HNT” if this HIP 138 passes. Why do we need to go through this? Please kindly stop this HIP 138. $MOBILE is a great project and it’s has a good capability to grow. It has nova labs and T-MOBILE.