# Data Credit

> Data Credits (DC) explained: fixed USD value, HNT burn mechanism, and cost structure for IoT and Mobile data transfer.

Data Credits (DCs) are the mechanism by which all Helium Network usage is paid for. This token is
redeemable for data transfer on both the IoT and Mobile subnetworks. Furthermore, certain actions
such as onboarding a Hotspot are paid for using DC.

For further reading on DCs' place in the overall mechanics of the Helium Network, refer to
[burn and mint economics](/tokens/hnt-token#burn-and-mint-economics) in the HNT token documentation.

## Data Credit Fundamentals

**One Data Credit equals $0.00001 USD.**

The amount of DC produced by burning one HNT will fluctuate based on the USD price of HNT as
reported by the on-chain [Pyth](https://pyth.network) price feed used by the Data Credits program.
The tool below demonstrates the HNT-to-DC conversion rate based on the price of HNT.

  <BrowserOnly fallback={Loading Data Credit simulator...}>
    {() => <HntToDcSimulator />}
  </BrowserOnly>

## Data Credit Usage

DCs are used first and foremost as payment for data transfer on the Helium IoT and Mobile networks.
Unlike traditional wireless networks, the Helium Network has no annual fee, and users only pay for
data used. In the original design of the protocol, it was recognized that users of the network would
not be comfortable with the volatility that comes with typical token economics. Therefore, DCs were
designed such that all data transfer is pinned to USD, making it predictable.

DCs are also used for specific functions on the Helium subnetworks, such as onboarding or asserting
the locations of Hotspots. See the [IoT](#dc-and-iot) and [Mobile](#dc-and-mobile) usage sections
below for more details. DCs are not transferable once created. When used for network transfer, they
can be delegated for data transfer accounting. Once DCs have been delegated, they cannot be
redelegated.

<TopLedgerEmbed
  caption="Weekly data credit burn"
  client="helium"
  queryId="5023"
  visualizationId="14472"
  apiKey="nPc8FdcKG69aM0Ne2C4FYHArO3LzpLPEPbnEYfsK"
/>

---

## Data Credits and Mobile {#dc-and-mobile}

The Helium Mobile Network leverages DCs as the sole mechanism of billing and fee management. The
Mobile Network charges data at a rate of **$0.10 per 1 gigabyte** (10,000 DC).

On cellular networks, it is customary that network operators bill for bulk data rather than for
individual packets. The \$0.10 per gigabyte rate reflects current commercial offload rates and
positions the Helium Mobile Network competitively in the marketplace.

### Mobile Protocol Fees

Fees related to onboarding and location assert were defined through community governance in
[HIP-89](https://github.com/helium/HIP/blob/main/0089-mobile-network-onboard-fees.md).

| Action                                                   | Fee   |
| -------------------------------------------------------- | ----- |
| Wi-Fi Indoor Onboard <sub>(Included with Hotspot)</sub>  | $20   |
| Wi-Fi Outdoor Onboard <sub>(Included with Hotspot)</sub> | $30   |
| [Converted Network Onboard](/mobile/helium-plus-mobile)  | $2.00 |

## Data Credits and IoT {#dc-and-iot}

On the Helium IoT network, the primary utility of DCs is for network data transfer. Data transfer is
billed in 24-byte increments based on the application payload size only. LoRaWAN protocol overhead
(headers, MIC, etc.) does not count toward the DC cost. Data transfer is only billed if the message
is delivered through the Helium Network.

Network users also have the choice to purchase multiple reports of the same packet. These additional
reports each account for their own cost. For instance, if three 24-byte copies are returned for a
given message, the cost would be 3 DC.

<PayloadSize />

### Data Transfer Calculator

Use this calculator to estimate deployment costs based on the number of devices and how often they
send data.

This calculator assumes a 24-byte message size, which is typical of most deployments.

<figure className="screensnippet-wrapper">
  <OperationCostEstimator />
</figure>

### IoT Protocol Fees

In addition to network data transfer, DCs are also utilized for certain network-related fees.

| Action                                       | Fee                                            |
| -------------------------------------------- | ---------------------------------------------- |
| [Hotspot Onboarding](/iot/onboard-a-hotspot) | $0.50                                          |
| [Assert Location](/iot/onboard-a-hotspot)    | $0.50                                          |
| OUI                                          | $100                                           |
| DevAddr Slab                                 | \$100 ($12.50 × 8)<sup>(</sup>[^1]<sup>)</sup> |

[^1]:
    DevAddrs must be purchased in slabs of 8.  
    [HIP-116](https://github.com/helium/HIP/blob/main/0116-lorawan-device-address-price-adjustment.md) reduced
    the fees for DevAddr purchasing and set a path to utilize the IOT token for DevAddr and OUI
    purchases instead of DC.

## Acquiring Data Credits

At a network level, DCs are only generated through the conversion of HNT. However, several tools
exist to simplify the process for network users.

:::important Data Credits are non-transferable

Once the DC mint transaction is complete, the receiving Helium wallet owns all of the DC and cannot
transfer them to any other Helium wallet.

DC can be delegated to network operator wallets by arrangement with the operator. This is a one-time
action. Learn more in the [Fund an Organizationally Unique Identifier](/iot/run-an-lns/fund-an-oui)
documentation.

:::

### HNT Swap

For individuals or organizations with HNT holdings and familiarity with using cryptocurrencies in
business operations, converting HNT to DCs via the on-chain Helium programs provides a
straightforward method for acquiring DCs.

HNT can be converted to DC using the [Helium Wallet App](/wallets/helium-wallet-app) or
[Helium CLI](/wallets/cli-wallet) wallet.