## Helium: A Revolution from Traditional Wireless Networks to On-Chain Ecosystems

Helium is not just another blockchain project; it is a fundamental transformation of wireless network ownership. Founded in 2013 by Amir Halim, Sean Fanning, and Sean Carey, this network challenges the traditional telecom model with a simple yet radical idea—empowering ordinary people, not large corporations, to build and manage global wireless networks.

To date, Helium has deployed over 1 million hotspots worldwide, covering 77,000 cities across 192 countries, making it the largest decentralized LoRaWAN network. On April 18, 2023, a pivotal moment, Helium made a game-changing decision—to migrate from an independent blockchain to Solana.

## Why Did Helium Choose Solana? Deep Technical Considerations

Helium’s founding team faced a real dilemma: as the number of hotspots in the network grew exponentially, the consensus verification based on Proof-of-Coverage (PoC) began to hit bottlenecks. Each hotspot needs to prove it has covered connected devices, but with increasing participants, this process became more time-consuming and inefficient. Meanwhile, data transmission reliability was also challenged—when network activity exceeded the native blockchain’s capacity, system stability was affected.

Solana offers a solution: ultra-low transaction fees (average $0.00025 vs Helium’s original $0.35), a strong developer community, a mature DeFi ecosystem, and efficient support for complex smart contracts. This migration is not an escape but a strategic upgrade—like moving from a small town to a big city to access more resources and opportunities.

## Helium’s Three-Layer Ecosystem Architecture

### IoT Network: Energy-Efficient Sensor World

Helium’s IoT subnet uses LoRaWAN protocol, designed specifically for low-power, long-distance IoT devices. Imagine a smart city scenario: temperature sensors on rooftops operate for years without replacing batteries, thanks to LoRaWAN’s high energy efficiency.

Real-world applications prove this:
- **Roof Tec** monitors rooftop conditions in real-time via Helium sensors, detecting faults early and avoiding $40,000 in repair costs
- **Greenmetrics** deploys soil sensors at golf courses in Portugal, reducing irrigation costs by 14-28%
- **Owen Equipment** uses Helium tracking systems to achieve 47% cost savings

These are not marketing stories but real business value—reliable, inexpensive wireless connectivity paid for with HNT tokens.

### 5G Mobile Network: Decentralized Telecom Choice

Helium Mobile offers a decentralized alternative to traditional telecom. Unlike centralized control by major carriers, anyone can install 5G hotspots (based on CBRS and WiFi) and earn MOBILE tokens by providing coverage. The recent $5 unlimited data plan in Miami demonstrates cost advantages—something hard to imagine in the traditional telecom world.

User participation is more than just consumption; it’s co-creating the network. Your hotspot coverage earns you MOBILE tokens, which can be used to pay for mobile bills. This creates a closed-loop economic ecosystem.

## Token System: Understanding Helium’s Financial Design

Helium’s token system is complex but elegant:

**HNT** (Native Governance Token): capped supply of 223 million. Holders can earn rewards through staking and participate in network governance votes (such as HNT issuance policies). Current price: $1.37, down 3.55% in 24 hours.

**IOT** (IoT subnet token): mining rewards for LoRaWAN hotspots. Supply of 20 billion, used for incentives and governance within subnets. Holders stake IOT to obtain veIOT voting rights.

**MOBILE** (Mobile network token): revenue source for 5G hotspots. Supply of 23 billion, users stake MOBILE to get veMOBILE, participating in independent governance of the mobile network. Current price: $0.00, down 4.21%.

**DC (Data Credits)**: generated by burning HNT, used to pay for data transmission on the network. This mechanism ensures ongoing demand for HNT.

**SOL**: executing any operation on the Solana blockchain requires SOL fees, including staking HNT, token swaps, NFT minting, etc. Current price: $143.53, down 3.07% in 24 hours.

## Five Core Changes After the Migration

### 1. NFT Revolutionizes Hotspots

Before, Helium hotspots were standard hardware. After migrating to Solana, hotspots are converted into compressed NFTs—this is not just symbolic. Compressed NFTs reduce storage costs, lower on-chain fees, and open new possibilities for developers: trading hotspots on secondary markets, programming complex usage conditions, or even using them as collateral.

### 2. Incentive Reset with Evolved Tokens

Previously, all LoRaWAN hotspots mined HNT. Now, they mine IOT, while HNT is reserved for network operations and Data Credits conversion. This separation allows each subnet to independently adjust incentive policies without affecting the core network economy.

### 3. Governance Upgrade with Staking Time Locks

The new veToken model introduces time-weighted voting: longer staking periods grant more voting power. This not only prevents whale manipulation but also uses economic incentives to promote long-term participation. Staking HNT can earn additional rewards, while staking IOT and MOBILE increases voting rights.

### 4. Unlocking Smart Contract Innovation

Erlang language (used in Helium’s native blockchain) is extremely rare among crypto developers. The Solana ecosystem uses Rust, attracting thousands of qualified developers worldwide. As a result, new application types become possible: from automated wireless coverage auctions to complex DeFi integrations and yield farming based on Orca and Kamino.

### 5. Seamless DeFi Integration

What does Solana’s mature DeFi ecosystem mean for Helium token holders? Liquidity mining, lending protocols, derivatives trading—HNT, IOT, and MOBILE can all flow through these protocols. Helium Wallet now connects directly to DeFi, eliminating the need to jump to external platforms.

## Practical Operation: How PoC Rewards Participants

Simply put: you install a Helium hotspot that periodically proves it provides wireless coverage at a specific location. Other hotspots in the network verify this proof (PoC), and if valid, you earn token rewards.

The brilliance of this mechanism is—it doesn’t require centralized GPS or third-party verification. Hotspots verify each other’s authenticity. Attempt to cheat? Other hotspots will reject your false proof, and you won’t earn rewards.

The result is a self-sustaining incentive cycle: more participants = better coverage = more users = higher demand = higher token value = more people join.

## The Future of Helium Network

Helium’s vision goes beyond wireless connectivity itself. The newly launched open-source developer funding program encourages developers to create applications using Helium infrastructure—from air quality monitoring to forest fire detection, pedestrian flow analysis, and water usage tracking.

Each application opens a new use case, each use case increases data transmission demand, and in turn drives up the demand for Data Credits. This positive feedback loop will determine Helium’s long-term value as an infrastructure layer.

Helium is doing what traditional telecom companies once looked down upon: proving that wireless networks do not need to be monopolized by large, monopolistic corporations. Built on the more powerful foundation of Solana, this proof becomes even more credible.