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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.

Subnetworks​

The Helium Network serves as the overarching system that enables a multitude of subnetworks to exist via the HNT token.

Those who delegate their veHNT position to a subnetwork are eligible to receive a portion of that Network's token emissions.

Each subnetwork governs a specific area of the Network. The distribution of HNT tokens available to the subnetwork is determined by the amount of veHNT delegated to each subnetwork. HNT is minted in proportion to the veHNT staked to each subnetwork. Initially, two subnetworks are introduced: IOT and MOBILE. Voting on matters specific to the IoT and Mobile networks will require veIOT and veMOBILE respectively.

IOT Subnetwork​

The IOT subnetwork focuses on the original vision of the Helium Network, supporting the growth and development of IoT devices and applications. Delegating veHNT to the IOT subnetwork will help fund projects and initiatives that further the IoT Ecosystem on the Helium Network.

MOBILE Subnetwork​

The MOBILE subnetwork is dedicated to the growth and expansion of the Helium Network in the cellular communications sector of the Network. Delegating veHNT to the MOBILE subnetwork will help finance projects and initiatives aimed at integrating Helium technology into mobile devices and Networks.

Delegating veHNT​

To earn rewards from the token emissions, veHNT holders must delegate their position to one or more subnetworks. 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 the subnetworks. 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:

Impacts on Subnetwork Rewards​

Subnetwork rewards are calculated and paid to the lock-up position each 24-hour reward period, at approximately 00:30 UTC. Currently, the IOT and MOBILE subnetwork each have a 6% token emission pool for veHNT stakers. This 6% is shared proportionately amongst all veHNT delegated to that subnetwork at the end of each epoch.

Subnetwork rewards may increase when:

  • More veHNT is delegated in the subnetwork you delegated to - your treasury gets more HNT.
  • More Hotspot onboarding fees are burned in the subnetwork you delegated to.
  • More Network Data is transferred within the subnetwork you delegated to.

Subnetwork rewards may decrease when:

  • More veHNT is delegated in the subnetwork you delegated to - your share is reduced.
  • More veHNT is delegated to other subnetworks - other treasuries get more HNT.
  • Your delegated veHNT decays over time after you enter cooldown (cliff mode)
  • More Hotspots are online in other subnetworks that have a non-zero onboarding fee.
  • More Network Data is transferred within other subnetworks.