Helium relies on a burn-and-mint equilibrium ( BME) to ensure that Hotspot operators are still incentivized after the network stops minting tokens. DCs are non-exchangeable utility tokenspegged to the USdollar. Data Credits (DCs): HNTs are burned to generate DCs, which the network accepts as payment for network services such as data transmission and transaction fees.The reward amount is based on the coverage quality and the amount of data transferred. Mining rewards: Hotspot operators earn HNTs as rewards for maintaining, providing, and validating Hotspot coverage and transferring device data.It has a capped supply and two primary uses: The Helium NetworkвЂ™s native token is called the Helium Network Token (HNT). The distribution of the HNT rewards per epoch is listed here. If a member is phased out before reaching four consecutive epochs, it can only be re-elected after the other 15 members are completely cycled out.ДЄfter an epoch, the consensus group members receive 6% of the total mining rewards, split evenly among the 16 members.The four members with the weakest performance are replaced.Upon reaching that limit, they are phased out, although they can be re-elected in the next election. The 12 members with the strongest mining performance remain in the consensus group unless they have reached the limit of four consecutive epochs.The selection is random, but a filter is applied to ensure that the members are geographically diverse. All active Hotspots are eligible to be elected into the consensus group. In the Helium Consensus Protocol, a consensus group of 16 members is elected once per epoch. The blockchain relies on the Helium Consensus Protocol, which is based on HoneyBadgerBFT, a protocol allowing groups of nodes to achieve consensus over unreliable connections. Hotspots participating in a PoC Challenge can earn HNT as rewards after an epoch.

The algorithm uses radio waves to constantly ping the routers via a mechanism called PoC Challenges, which helps determine the quality of a network. It uses the novel Proof of Coverage ( PoC) algorithm to verify the locations of Hotspots and determine their actual coverages. The Helium blockchain is responsible for keeping an immutable record of the transactions within the network. In addition, the protocol enables the routers to exchange data with compatible devices over long ranges (200 times longer than with Wi-Fi) in a very power-efficient way. This open-source protocol allows developers to build applications that can run on the Helium Network. Hotspots use the LongFiВ protocol designed by Helium to communicate with each other. Each Hotspot serves as mining hardware and a node for the Helium blockchain and can be purchased and set up by users or businesses. Helium depends on devices called Hotspots, which are long-range wide area network ( LoRaWAN) routers tested for use on the network. The Helium Network, also called the PeopleвЂ™s Network, is a blockchain-based peer-to-peer (P2P) wireless network that connects IoT devices to the Internet in an energy-efficient, secure, and low-cost way. HNT trades at $12 per token with a circulating supply of 87 million, for a market cap of $1 billion. Launched in 2019, Helium (HNT) is a decentralized, open, and distributed network of long-range wireless routers for Internet of Things ( IoT) devices.

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