Helium
Crypto Overview
Overview
Helium (HNT) is a decentralized wireless network protocol that aims to create a global network of Internet of Things (IoT) devices and 5G cellular coverage. The network is built on a blockchain where participants earn HNT tokens for providing wireless coverage through compatible hotspot devices.
Intended Utility
The primary purpose of HNT is to incentivize the deployment and maintenance of wireless network infrastructure. Token holders can stake HNT to validate transactions and earn rewards for securing the network. The token also serves as a governance mechanism for protocol decisions.
Actual Utility
As of 2024, Helium has successfully deployed over 1 million hotspots worldwide. The network has pivoted to focus more on 5G coverage through a partnership with T-Mobile, while maintaining its IoT network. The project merged with Solana blockchain in 2023 to improve scalability and reduce operational costs.
Token Distribution and Governance
The token distribution includes allocations for investors, team members, and the community. There are vesting schedules in place for early investors and team members. The Nova Labs team (formerly Helium Inc.) maintains significant influence over the project's development but has demonstrated consistent progress in building the network infrastructure.
Technology and Revenue Model
The network operates through a 'Proof-of-Coverage' consensus mechanism, where hotspot operators earn rewards for providing legitimate wireless coverage. The revenue model is based on actual network usage, with users paying for data credits to access the network. This creates a clear value exchange between network providers and users.
Crypto Impact
To assign a comfort level investing in Helium from a halal perspective we need to determine whether it has a net positive or negative impact.
Towards this end, the table below is used to tally all the positive and negative considerations our members can think of related to Helium.
If you don’t see something that should be listed, positive or negative, feel free to submit your own contribution using the button “Contribute”.
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