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 would end and be redirected to the MOBILE treasury until the next halvening (August 1, 2025). Post halvening, these rewards will be issued, like existing emissions, to Hotspot owners and other network participants via the Utility Score. Finally, unissued HNT (approximately 4.2 million) from the Helium L1 would gradually fund the MOBILE treasury.

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 network 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.