Author: Chain Tea House
Helium Mobile has the potential to create a significant impact in the communications industry through its unique token economy and partnerships. However, the project’s success will depend on its ability to continue innovating, expanding market acceptance, and overcoming technical and regulatory challenges.
Helium Mobile is a wireless phone service built on the decentralized and crypto-driven Helium Network.
This innovative service provides cellular connectivity through the decentralized Helium Network, supported by T-Mobile’s extensive 5G infrastructure. Traditional mobile networks are often controlled by a few large companies, limiting the coverage and quality of services. Helium Mobile leverages hotspots deployed by community members to provide dynamic network coverage, aiming to create a broader and more reliable network.
Furthermore, in the traditional model, users are merely consumers of the service. Helium Mobile allows users to actively participate in network construction by deploying devices and verifying network coverage, earning MOBILE tokens as rewards for this activity, essentially turning users into co-owners and beneficiaries of the network. In other words, subscribers have a unique opportunity to earn tokens while using the service and providing coverage to their local communities via hotspots and antennas.
Operation Principle
Helium Mobile operates based on a unique peer-to-peer network model that relies on a distributed network of community-deployed hotspots rather than traditional cellular towers. These hotspots provide coverage and generate tokens, namely HNT, which can be converted into MOBILE tokens.
Here is a detailed explanation of its operation principle:
Community Hotspot Deployment: Ordinary people, like you and me, can deploy Helium hotspots in their homes, workplaces, or other community locations. These hotspots provide wireless network coverage to the surrounding areas.
Blockchain Technology Application: Helium Mobile is based on the decentralized and encrypted Helium Network. This network allows anyone to develop and operate their mobile network using a token incentive mechanism. The entire system runs on the Solana blockchain, ensuring network security and efficiency.
Token Generation and Usage: Deployed hotspots provide network coverage and generate the Helium Network’s native token, HNT. Users can convert HNT tokens into Mobile tokens, which can be used to pay for phone service fees or participate in network governance.
Integration with T-Mobile’s Network: Helium Mobile leverages T-Mobile’s 5G infrastructure. Users’ devices can seamlessly switch between the Helium Network and T-Mobile’s extensive 5G coverage, ensuring continuity of service and signal stability.
Energy Efficiency and Token Rewards: Helium Network’s LoRaWAN hotspots are highly energy-efficient, consuming only about 5W of power. Moreover, as hotspot providers, users can earn tokens not only by providing network coverage but also by participating in network governance and data-sharing activities.
Even without creating a hotspot, you can still enjoy the benefits of Helium Mobile. Simply register as a customer and connect to the nearest hotspot. Your phone can effortlessly switch between the Helium Network and T-Mobile’s vast 5G coverage, ensuring you never lose signal.
This model encourages community participation and innovation while enhancing network resilience through decentralization, reducing dependence on a single service provider, potentially lowering costs, and improving service quality.
Core Mechanisms
Helium Mobile’s core mechanisms involve several key components that collectively support its decentralized wireless communication service.
Here are detailed descriptions of these mechanisms:
Community-Driven Network Deployment
Hotspot Deployment: The Helium Network relies on hotspots deployed by individuals and businesses to provide wireless coverage. These hotspots are purchased and deployed by community members, providing wireless network coverage on their properties. Deployers are rewarded with Helium Network tokens (HNT) for providing network service.
Blockchain and Token Incentives
Blockchain-Based Operation: Helium Mobile operates on a blockchain, using smart contracts to automate network operations and user interactions, ensuring transaction and operation transparency and security.
Token Incentives: Network participants (hotspot operators, users, etc.) are economically incentivized through Helium tokens (HNT and Mobile). HNT primarily rewards network coverage providers, while Mobile tokens are used to pay for network service fees and participate in network governance.
Decentralized Network Management
User Governance: Helium Mobile advocates network governance decisions through its token holders, including rule changes and fee structure adjustments. This decentralized governance model enhances the network’s adaptability and user engagement.
Data Sharing and Transparency: Network operational data is open and transparent, allowing users to access detailed information about network performance and coverage, increasing trust and network efficiency.
Intelligent Network Access and Switching
Seamless Network Switching: Helium Mobile devices can seamlessly switch between the Helium Network and partner networks (such as T-Mobile’s 5G network). This ensures users maintain good connectivity even in areas with insufficient Helium hotspot coverage.
Dynamic Resource Allocation: The network can intelligently adjust resource allocation based on real-time demand and resource availability, optimizing network performance and user experience.
Energy Efficiency and Eco-Friendliness
Low-Power Hotspots: Helium’s LoRaWAN hotspots are designed for low-power IoT device network coverage, consuming very little power (about 5W), helping to reduce operational costs and environmental impact.
Helium Mobile’s core mechanisms combine advanced blockchain technology, community-driven participation, intelligent network management, and decentralized governance, collectively supporting a robust and innovative wireless network service platform. These mechanisms not only enhance network efficiency and coverage but also provide users with more economical and flexible mobile communication options.
Mobile Tokens
Uses
Paying Network Service Fees: Users can use MOBILE tokens to pay their monthly wireless service fees, including data plans, calls, and SMS services.
Network Governance: MOBILE token holders can participate in voting on network policies, upgrades, and other decisions, thereby participating in network governance.
Incentive Mechanism: Hotspot operators providing network coverage or users participating in network activities (such as data transmission) can earn MOBILE tokens as rewards.
Staking Rewards: Users can stake their MOBILE tokens to support the network’s security and operations, potentially earning staking rewards.
Data Sharing: Users can earn MOBILE tokens by voluntarily sharing network coverage data, encouraging community participation and network transparency.
Acquisition Methods
Users can obtain Mobile tokens by participating in network construction (such as providing network coverage), conducting transactions, or purchasing them on the market.
MOBILE tokens are currently listed on the following cryptocurrency exchanges:
Coinbase Exchange: The most popular trading pair is MOBILE/USD.
Backpack Exchange
Crypto.com Exchange
CoinMarketCap: Although not an exchange, it provides token price tracking and may list which exchanges support MOBILE tokens.
Bitget: This leading global cryptocurrency exchange and Web3 company has announced the listing of Helium’s 5G network governance token MOBILE.
Supply
The total supply of Mobile tokens is 82.26B MOBILE, with a maximum supply of 200 billion MOBILE. The current circulating supply is 82.26B MOBILE, accounting for 41.13% of the total supply.
50 billion MOBILE tokens were pre-mined at the launch of the Mobile Network and distributed to the Network Operating Fund managed by the Helium Foundation. Part of this allocation has been distributed to Mobile Network hotspots throughout Genesis.
The first year of MOBILE started on August 1, 2022, with the first token minted on August 12, 2022. Halving occurs every two years, maintaining a deflationary state overall.
MOBILE’s emission schedule was proposed in HIP53, starting from February 1, 2023, where 6.6B MOBILE tokens will be distributed monthly to 5G hotspot owners, incentivizing subscribers to register, share data, or demonstrate various other valuable behaviors to promote network growth. Compared to the Genesis period, the rewards will more than double, but the PoC algorithm remains unchanged. Subsequently updated through HIP-75, confirmed in HIP-77, and officially updated in HIP-79 on March 19, 2023.
Mining Process
Purchasing and Setting Up 5G Hotspots: Compatible 5G hotspot equipment and CBRS (Citizens Broadband Radio Service) small cell radios need to be purchased. The equipment needs to be connected to the internet and properly set up.
Registering with SAS: 5G hotspots must be online and registered in the Spectrum Access System (SAS). SAS is maintained by the Federal Communications Commission (FCC) in the United States, ensuring efficient use of wireless spectrum resources.
Hotspot Deployment: Deploy the hotspot equipment in an appropriate location to provide 5G network coverage. Proper hotspot placement is crucial for maximizing coverage and mining potential.
Participating in the Network: Once the hotspot is online and registered with SAS, it will start providing 5G coverage for the Helium Network. The hotspot will automatically perform the necessary tasks to mine MOBILE tokens based on the network’s design.
Mining and Earning Tokens: Hotspot devices will mine MOBILE tokens through specific mechanisms of the Helium Network, such as Proof-of-Coverage. Depending on network activity, you may also earn other forms of rewards.
Token Distribution
Data Hotspot Operators: 40% of the total tokens are allocated as rewards for hotspots providing data coverage.
Mappers: 20% for participants contributing mapping data for network coverage.
Service Providers: 10% for entities providing various services to the network.
veHNT Holders: For their HNT tokens, holders have质Users who have vested Helium Network Tokens (veHNT) constitute 6% of participants. Oracles, systems or entities providing external data to blockchains (e.g., real-world information), account for 4%. Proof of Coverage participants, aiding in network validation, comprise 20%.
Token Performance
The current price of MOBILE tokens is $0.002019, marking a 31.42% decline over the past 7 days. With a market capitalization of $166.06M, it ranks 303rd. The 24-hour trading volume is approximately $4.98M, reflecting a 7.86% increase, indicating heightened trading activity despite the price decline.
Market Analysis
The Helium Mobile project operates within the decentralized communication network sector, blending blockchain and wireless communication technologies. Its aim is to offer decentralized network services and enhance user privacy and control.
Similar projects include DENT Wireless (a global mobile data exchange platform allowing users to buy, sell, or donate data via the DENT app), Althea (a decentralized internet service provider enabling users to provide and purchase bandwidth services, emphasizing service availability and cost reduction), and ThreeFold Network (a decentralized cloud services marketplace where users can purchase storage and computing resources).
Helium Mobile currently boasts over 50,000 users, with projections suggesting it may reach 530,000 users annually.
Users participating in mapping receive 2000 MOBILE tokens daily, which, at current prices, recoup $20 in costs every 3 days.
Team/Partners/Funding Status
Team
Helium Mobile is initiated by Helium Inc., founded by Amir Haleem, Sean Carey, and Shawn Fanning:
– Amir Haleem: Prior to Helium, Amir Haleem held senior roles in successful gaming projects, accumulating expertise in gaming and virtual reality.
– Sean Carey: Sean Carey has a background in technical and product development, particularly in software development, prior to joining Helium.
– Shawn Fanning: Shawn Fanning, renowned for creating Napster, brings extensive experience in internet technologies and innovation to the project.
Partners
Hardware Suppliers: Manufacturers providing Helium hotspot devices include Rakwireless, Bobcat Miner, and Nebra.
Network Operators: Collaborations with mobile network operators like T-Mobile in the US support 5G service deployment.
Technology Platforms and Services: Helium has chosen the Solana blockchain for token issuance, leveraging its high throughput and low transaction costs.
Funding
Helium Mobile has undergone multiple funding rounds, notably:
– Funding Round: Series D
– Amount Raised: $200M
– Valuation: $1.2B
– Major Investors: Tiger Global and FTX Ventures
This significant funding supports Helium Mobile (Nova Labs) in enhancing its market position within decentralized communication networks and expanding blockchain-based 5G network services.
Project Pros and Cons
Advantages
– Decentralized network structure
– Scalability: Helium Mobile’s decentralized approach enables rapid network expansion without requiring substantial capital expenditure.
– Resistance to censorship: Decentralized networks are less susceptible to single-entity control or shutdown, enhancing network stability and reliability.
– User incentive mechanisms: Through token rewards, users are incentivized to participate in network deployment and data transmission, promoting community involvement and natural network growth.
– Technological innovation: Helium Mobile employs blockchain technology to manage network operations and token economics, ensuring transparency and security.
– Support for multiple network standards: Supports LoRaWAN and 5G, catering to a wide range of use cases and devices.
– Strong partnerships: Collaborations with major telecom giants like T-Mobile enhance network reliability and coverage, crucial for rapid network expansion and improved user experience.
Disadvantages
– Network dependency: Requires specific hardware for participation, potentially limiting project adoption and coverage.
– Network density issues: Efficiency of decentralized networks heavily relies on geographic distribution of participants; sparse population or low participation areas may result in unstable network services.
– Technical complexity and user experience: While efforts are made to simplify user onboarding, node management still requires technical knowledge, posing challenges for non-technical users.
– Maintenance and support: As a decentralized network, users may face difficulties accessing timely and effective technical support for device issues.
Regulatory and compliance risks: Evolving legal landscapes in blockchain and cryptocurrency domains could impact project operations and expansion.
Market competition: Competing with traditional telecom giants and emerging blockchain communication projects, which may possess more resources or mature technologies.
Token volatility: Economic model influenced by market sentiment and cryptocurrency fluctuations, potentially impacting fund and token value stability.
Future Development Analysis
Helium Mobile’s future prospects appear optimistic, driven by:
– Competitive pricing: Offering a $20 unlimited call and data plan, significantly undercutting the US market average of $157 monthly communication costs.
– Tokenomics and user incentives: Token economy incentivizes user network participation and maintenance, expanding network coverage and increasing user retention.
– Partnerships: Partnerships with T-Mobile and Telefónica (in Mexico) enhance network reliability and international expansion potential.
– Technological infrastructure: Success hinges on stable and efficient technology handling large-scale network activities and data.
– Market and regulatory acceptance: Local compliance and effective marketing are critical for enhancing market acceptance.
Integration with DePIN and Solana ecosystem: Migration to Solana network and integration with DePIN ecosystem could further drive technological advancement and market expansion.
Adjustment of mining rules: Mining rule adjustments align rewards with actual network services, potentially improving network quality and fairness, thereby enhancing overall network value.
Market growth and expansion: Strategic market approaches and expansion plans will be crucial for future success, maintaining current user base, attracting new users, and expanding into new geographic regions.
In conclusion, Helium Mobile holds potential to make significant impacts in the telecommunications industry through its unique token economics and partnership strategies. However, success will depend on its ability to innovate continuously, increase market acceptance, and overcome technical and regulatory challenges amid evolving market and technological developments.
