Decentralization is the present and future of technology, allowing access to those who might not find it in centralized systems. One project seeks to use decentralization and the blockchain to expand the Internet: Helium.
The Helium Network is a blockchain-based wireless infrastructure project that aims to offer seamless, decentralized, and affordable internet connectivity worldwide. It enables individuals and businesses to operate on these wireless networks in exchange for rewards paid in the blockchain’s native tokens.
And, like many other tokens, it can be mined for those rewards.
Read on to learn more about Helium and how you can mine Helium 5G tokens.
What is Helium?
Since April 2023, Solana has been the underlying blockchain infrastructure for Helium. Solana is known for its scalability potential and high-speed transactions.
Helium is developing a 5G network that revolutionizes mobile network development. It differs from traditional, centrally-operated networks and relies on decentralized community participation.
Helium promotes a decentralized model that incentivizes communities to expand network coverage. Thanks to this approach, it can address the surging demand for high-bandwidth, low-latency internet connectivity.
Using technologies like Citizens Broadband Radio Service (CBRS), LoRaWAN hotspots, and Wi-Fi, individuals and organizations can contribute to a denser and more efficient 5G infrastructure. Anyone can deploy 5G Hotspots and get rewarded with MOBILE tokens.
Mining Helium MOBILE Tokens
Mining Helium MOBILE tokens play a significant role in Helium’s 5G strategy. Anyone can mine MOBILE by deploying 5G Hotspots with CBRS Radios, which provide 5G wireless coverage and facilitate network verification.
Deployment involves setting up the 5G Hotspots and connecting them to one or more Radios. Once deployed, earned MOBILE rewards are credited to a Solana NFT associated with the Hotspot. These rewards are calculated based on several factors, including the coverage provided and the network’s overall performance.
Once deployed, 5G Hotspot owners don’t have to do anything else to earn MOBILE – the system is designed for autonomous operation.
This mining mechanism democratizes network expansion, enabling individuals and organizations to build the 5G network and get rewarded. The Helium Foundation also plays a significant role, offering grants to core developers.
Tokens on Helium
The Helium ecosystem uses four native tokens:
- HNT – the Helium Network Token (HNT) is the native cryptocurrency of the ecosystem, having its supply capped at 223 million. HNT is the only token that can be burned to create Data Credits, which transfer bytes of data via Helium and have a fixed USD price of $0.00001.
- IOT – this is the protocol token mined by LoRaWAN Hotspots either through data transfer proceeds or as Proof of Coverage. It powers the Internet of Things.
- MOBILE – MOBILE is the other protocol token that 5G-CBRS and WiFi Hotspots can mine simultaneously. Both IOT and MOBILE can be redeemed for HNT.
- Data Credits – this is a stablecoin priced at $0.00001. It’s used for payments for data transfers.
Geographical Considerations and Setup
While Helium envisions a global 5G network with high internet speed, it’s currently easiest to mine MOBILE tokens in the US.
US citizens can install a Helium 5G miner and earn 100% of the generated MOBILE tokens.
The internet speed determines which device is best suited and the subsequent rewards. For example, if you live in the US and the internet speed is 200 Mbps, you can earn over $3,000 monthly.
One downside is that these radios must be registered with the FCC’s Spectrum Access System to ensure they operate correctly and use the spectrum efficiently.
Currently, non-US residents need help to install a miner in their homes. Still, they can use a deployer to establish a miner in a host location. For example, they can start mining through an online service called Moken.
Installation Options and Support
US residents who want to mine MOBILE can choose from two options for setting up a Helium 5G hotspot:
- Professional installation – Helium has a nationwide team of professional installers that can set up and support the hotspot, from installation to future maintenance.
- Self-installation with guidance – Installing a hotspot is not tricky, but miners must attach a physical device to their location and ensure it works correctly. Those who think they can do it independently can benefit from a complete list of how-to guides Helium provides. Their team is also available by phone to support users with the installation.
Note that in either case, installation involves buying Helium hardware, which starts at $1,300 for a single unit (all of which, as of this writing in December 2023, are sold out).
Financial Aspects of Helium Mining
While MOBILE has a fluctuating price, it is always backed by (and can be converted to) HNT. Each network within the Helium ecosystem is allocated a pool of HNT based on its Network Utility Score, with the redemption ratio set algorithmically.
Users can exchange MOBILE to HNT at any time directly on the Helium Wallet App.
MOBILE token relies on a deflationary model, following a minting schedule similar to HNT. Its maximum supply is capped at 230 billion tokens. 50 billion were pre-mined at the launch and distributed to the Network operation fund run by the Helium Foundation.
Eventually, the MOBILE issuance rate will diminish as the system has programmed halvings every two years to align with HNT issuance pace. Here is the token’s minting schedule and allocation:
Data Source
The Future of Helium and MOBILE Tokens
The Helium Network and its 5G project has great potential due to its unique approach and community-driven effort. Many expect Helium to thrive in the coming years, and MOBILE tokens can benefit from this expansion. However, the real value comes from ongoing mining rather than speculating on the token’s price, which will likely seek stability.
It remains to be seen if people adopt Helium’s infrastructure en masse, but fast internet connectivity at a low cost is attractive to everyone.
Up to this point in 2023, HNT has shown strong performance, supporting the value of MOBILE tokens.
Investor Takeaway
The Helium Network proposes an innovative and accessible approach to building a global 5G network, starting with the US. Its blockchain-based system democratizes internet access and provides tangible rewards through MOBILE tokens. The simplicity of the mining process, coupled with the supportive ecosystem offered by the Helium Foundation, makes this an attractive opportunity.
While this could be an attractive opportunity for investors looking to make actual returns from mining, it’s important to note that there is some overhead. You will have to purchase one or more pieces of hardware (starting at around $1,300) and contend with fluctuations in coverage. Then, there is the whole “registering with the FCC” issue.
But, if you’re in a populated area and can afford an up-front cost (which, if you were already looking into a mining rig, could be the case), then this could be a great chance. As the network expands, this could be an opportune time to become part of this revolutionary project.
