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Helium has positioned itself as one of the dominant networks in the Web3 sector because of its focus on decentralizing the internet. Helium is a wireless network supporting sensors and trackers, and it is powered by node operators rewarded through tokens.
The Helium network has received notable support, allowing it to compete in the growing Web3 space. Nova Labs, the startup representing the network's founders, announced that Helium would launch new tokens linked to individual networks.
Helium plans to launch new tokens
The Helium network has announced plans to expand into other areas such as 5G connectivity and others. The network has announced that it will shift to a new model to support this expansion.
The HNT token, the existing native token for the Helium network, will be sustained in the network. The CEO and co-founder of Nova labs, Amir Haleem, said that HNT would function as the floor currency or the reserve currency of the Helium ecosystem.
The Helium expansion plan involves a variety of steps. The network is first planning to unveil a new MOBILE crypto token. This token will be launched this month and will be used to reward the people who run a 5G node and provide coverage to the latest Helium network.
Haleem noted that the early adopters of the Helium network running 5G nodes were not being rewarded for offering coverage for devices such as phones and laptops. Around 5000 early adopters are running 5G nodes. Changes will be discovered after the MOBILE token has been launched.
This new token will be launched alongside Helium's plans to rapidly scale its 5G connectivity. To achieve this, the network is already partnering with hardware firms such as FreedomFi to lower the prices of these nodes.
The Helium network is also planning to launch the IOT token in August. This token will be earned by those who run the original LoRaWAN network focused on Internet of Things (IoT) devices. The network currently has over 850,000 active nodes globally. This is a notable rise from the 640,000 reported in mid-March. The growth has been consistent since the beginning of 2021.
HNT tokens that have been purchased through secondary markets or those earned by node operators will remain unchanged. These tokens will preserve their use and value even after the IOT and MOBILE tokens have been launched.
MOBILE and IOT tokens can be swapped for HNT according to the holders' preferences. Haleem said that this would be similar to exchanging fiat currencies like the US dollar for gold. However, this process will not work for those who want to swap the HNT back for MOBILE and IOT.
Haleem added, “As we've seen with Helium, the network is always evolving. There's always new challenges. There's always new things to think about, and how to govern all of these different protocols is a complicated question. Putting it in the hands of the token holders for each protocol, I think, is a really interesting way of solving that.”
Helium's expansion plans
The launch of these new tokens is in line with Helium's expansion plans. The changes tabled as “Chapter 2” were passed through a community vote that ended on June 7. The HIP 51 proposal was passed by around 97% of the tokens used during the vote. The HIP 52 and HIP 53 proposals will generate new sub-DAOs for every protocol.
The passing of these proposals reflects a large shift in the network. The move could integrate new protocols under the Helium network. Some connectivity protocols that could launch on Helium include Wi-Fi and content delivery networks (CDNs).
To learn more visit our Investing in Helium guide.
Ali is a freelance writer covering the cryptocurrency markets and the blockchain industry. He has 8 years of experience writing about cryptocurrencies, technology, and trading. His work can be found in various high-profile investment sites including CCN, Capital.com, Bitcoinist, and NewsBTC.