In our last post, we talked about XNET Mobile, a Decentralized Physical Infrastructure Network (DePIN) project focused on building-out wireless infrastructure to offload data from mobile carriers such as AT&T.

In this article, we are going to switch gears and focus on Helium, the original decentralized wireless network that is widely regarded as the very first DePIN project.

We will briefly cover Helium's unique history, innovative yet fluctuating tokenomics, bold migration into Solana, as well as their recent expansion into Mexico and Brazil.

Helium's History

Helium launched in 2019 with the novel idea of using token incentives to roll-out a decentralized LoRaWAN network that would provide Internet access to rural IoT devices such as agricultural and environmental sensors. Thanks in part to the crypto bull-run of 2021, hotspot deployments surged from roughly 30,000 in early 2021 to over 300,000 by mid-2022.

In that same year, Helium expanded into the 5G domain, and the community began to deploy CBRS radios to enable mobile connectivity. The project pivoted in 2024, shifting focus from CBRS 5G radios to WiFi hotspots for the Helium Mobile network (the community's cheaper alternative to AT&T or Verizon), as well as data offload for partner carriers.

Network Growth

Different from traditional centralized telecom companies that require huge amounts of CapEx to roll-out wireless infrastructure, the decentralized Helium community foots the bill for hotspots initially, with the expectation that their hardware investment will eventually be repaid with HNT token rewards, and then start generating passive income.

Despite Helium's HNT token crashing from a high of $52.99 in Nov 2021 to only $1.62 today, both their network and user base continue to expand steadily, surpassing 2.3 million users on December 19th.

Helium's data offload numbers (from partner carriers such as AT&T) continue to increase as well, mirroring the upward trajectory of XNET.

Innovative Tokenomics

Helium applies the innovative Burn-Mint-Equilibrium (BME) model. In other words, it uses smart contracts to adjust the HNT token supply based on real-world demand, rather than just blindly minting new tokens on a set schedule.

To use Helium's decentralized wireless network, customers must first purchase HNT tokens off the market, and then burn them (send them to an unrecoverable wallet address) in order to generate non-transferable data credits (DCs).

The DCs, whose value is pegged to the US dollar, are then used by mobile subscribers to pay for data usage on the network, or by mobile carriers such as AT&T to offload customer data from their congested cellular towers.

In practice however, when it comes to Helium Mobile's network, Nova Labs (the company behind Helium) receives payment from most of their subscribers and partner carriers in fiat currency (dollars, for example), and then burns HNT on their behalf.

This saves non-technical subscribers and mobile carriers from having to learn about things like non-custodial crypto wallets, but also centralizes operations to a degree, and requires Nova Labs to be transparent about their token burns.

HNT Token Evolution

Initially, Helium rewarded all wireless hotspot operators solely in HNT tokens.

In 2023, the community approved the subDAO framework, which introduced two separate subnetworks for their LoRaWAN and 5G/WiFi networks. This took effect after the Solana migration later that year:

IoT hotspots began earning IOT tokens.
Mobile hotspots (initially 5G, later WiFi) earned MOBILE tokens.

This multi-token system aimed to allow independent growth and governance for each subnetwork, but also added complexity. It resulted in separate treasuries, staking, and governance votes. This fragmented liquidity and also confused new users.

Many in the community viewed the subDAOs as overly complicated, leading to HIP-138 ("Return to HNT"), approved in November 2024 and fully implemented in January 2025. Since then, all hotspots earn rewards in HNT again.

Some community members were upset, expressing concern that this flip-flip between tokenomics models may erode trust in the project. That said, perhaps Helium can be forgiven for such experimental mishaps, considering they were the first trailblazer in the DePIN industry.

Initial Token Allocation

Unlike many other newer DePIN projects, Helium did not have an initial token allocation (or "pre-mine"), in which a percentage of tokens are immediately allotted to early backers, insiders, or venture capitalists.

Helium's initial token emission distribution was 29% for proof-of-coverage (to stimulate hotspot roll-out), 30% for data transfer rewards, 6% for consensus (to reward the original blockchain validators), and 35% (gradually decreasing over time) to Helium and its early investors.

Since HIP-138 passed, 100% of newly minted HNT emissions go to the community (primarily hotspot operators, with a small portion to stakers who participate in governance).

Migration to Solana

Although Helium initially launched on their own proprietary blockchain, the community voted in 2022 to migrate the token and smart contracts to Solana for better scalability, speed, and access to a larger developer ecosystem.

Other DePIN projects such as Render, XNET, and Geodnet have also either migrated or expanded their token into the Solana ecosystem, positioning that particular blockchain as a front-runner in the DePIN space.

While it was a concern for some community members after the initial migration, the freeze authority for HNT was revoked in 2025, making the token more censorship-resistant.

Expansion to Mexico and Brazil

Helium started off solely focused on the US market, but they have since expanded abroad.

In February 2025, the team introduced the Helium network to millions of Mexicans through a partnership with Movistar. However, Telefónica's November 2025 announcement of its exit from the Mexican market creates uncertainty for the long-term partnership.

On December 10th, Helium announced another partnership with Mambo WiFi in Brazil, a leading local wireless provider with roughly 40,000 existing access points. This joint venture leverages Mambo's existing infrastructure as a foundation for decentralized hotspots.

Until next time...

As demand for mobile bandwidth continues to rise globally, wireless DePIN networks such as Helium and XNET have a potentially very bright future ahead of them, so long as they increase the transparency of their token burns and keep their tokenomics predictable.

For the risk-tolerant, Helium tokens can be traded on Solana-based decentralized exchanges such as Orca and Raydium, as well as on centralized exchanges such as Coinbase and KuCoin. That said, always be sure do to your own research before investing!

If you learned something new from this article, be sure to check out my other posts on crypto and finance here on the Hive blockchain. You can also follow me on X or InLeo for more frequent updates.

Sources

- Helium Mobile Growth Stats
- Initial HNT Distribution Chart
- Helium Mambo Partnership Image

DePIN Spotlight: Helium's Decentralized Wireless Network Surpasses 2.3 Million Daily Users