Helium Vote Escrow Token
In the Helium Ecosystem, HNT holders can receive veHNT positions by locking their HNT on-chain for a specified period in exchange for voting power and Subnetwork delegation reward in the Helium DAO. After the lock-up period ends and the locked position is closed, the amount of HNT is released to the owner's Wallet and is once again transferable.
veHNT, or voting-escrowed HNT, is a position introduced as part of HIP-51. veHNT was designed to empower Helium Token holders by allowing them to participate in the governance of the Network and benefit from its growth. By understanding the veHNT token and the governance model, Helium stakeholders can make informed decisions and actively participate in shaping the Network's future.
How veHNT Works
When HNT is locked into the voting escrow, it is converted to a veHNT position, which can be used to participate in Network governance and decision-making. veHNT is the only way to vote in the Helium Network. The primary purpose of veHNT is to incentivize long-term commitment to the Network and align stakeholders' interests with the Network's long-term success.
The amount of veHNT received when locking HNT depends on the lock-up period chosen by the user, with longer lock-up periods resulting in a higher veHNT multiplier.
Mobile and IOT
The Helium Network serves as the overarching system that enables both the Mobile and IOT networks to exist via the HNT token.
Those who delegate their veHNT position to either network and contribute regularly to governance are eligible to receive a portion of HNT rewards. The distribution of HNT tokens available to either the Mobile or IOT network is determined by the amount of veHNT delegated to either.
The Mobile network
The Mobile network is dedicated to the growth and expansion of the Helium Network in cellular communications. Delegating veHNT to the Mobile network will help finance projects and initiatives aimed at integrating Helium technology into cellular devices and networks.
The IOT network
The IOT network focuses on supporting the growth and development of IOT devices and applications. Delegating veHNT to the IOT network will help fund projects and initiatives that further the IOT Ecosystem on the Helium Network.
Delegating veHNT
To earn HNT reward, veHNT holders must delegate their position to either the Mobile or IOT networks (or both). The lock-up period can range from 1 day to 48 months, with the longer lock-up periods resulting in a higher veHNT multiplier. Users can also change their delegations at any time to optimize their rewards from either network. For the accrued rewards to be sent to a veHNT holder's wallet, they need to be claimed manually.
veTokens can be managed through Realms using the in-app browser on the Helium Wallet App: