After 1 Year of Mining Helium, Why I Started Staking My Earned HNT
HELIUM STAKING IS NO LONGER RELEVANT AS OF HELIUM’S MIGRATION TO SOLANA ON APRIL 18, 2023.
If you’re anything like me your experience with Helium mining has resembled something similar to my own, regardless of when you started.
- I started mining with 1 miner in March of 2021.
- The rewards were great but they diminished every month as more miners joined the Network.
- I optimized performance by moving my hotspot to different locations in my house weekly until I found the best location. I saw improvement.
- I then bought cable and an outdoor antenna which I mounted on my roof. I again saw great improvement but rewards continued to diminish.
- I bought more Helium Hotspots. I gave them to friends and family and shared in the revenue with them. (Side note: I use Hotspotty to track, share data and make payments to the host of my other hotspots)
- I am a believer in the Helium Network over the longterm. I began researching the staking pools available for holders of less than 10,000 HNT to participate in with hopes that a reputable exchange would offer Helium Staking.
- The pricing structure of available pools and my concerns of relinquishing control of my HNT were too large for me to join a pool.
- One year on… and I’m still hoping to see U.S. enabled exchanges offering HNT Staking but I have gone ahead staked a decent portion of HNT with the Helium-Staking app to continue my effort to gobble up as much HNT as possible.
Below is a review of what Helium Staking is, the various groups offering to help you stake, a discount code on admin fees and where we will see platforms progress over the next several quarters.
Today there are three options when it comes to staking your HNT:
- Stake 10,000 HNT and set up your own enterprise level Validator node.
- Join a pool with low minimums and reasonable fees, contributing to a Validator node and earning additional HNT.
- Stake your HNT with Binance (does not include BinanceUS as of March 1. 2022).
Because most people fall into bucket number 2 we will be focusing on the Helium Staking Pools. However, there is a review of Binance’s structure and pricing at the bottom of this article and a link to additional information on how to stake with Binance.
What is Helium Staking?
Like other blockchains, Helium’s staking is centered around validating that the data and related ‘transactions’ are true. The Validators on the Helium Blockchain add new blocks to the blockchain every time they verify activity. The Validators and related staked 10,000 HNT play a critical role in the stability and success of the Helium Network. The staked HNT is put up as collateral and is forfeited if the validator is seen as a bad actor or shows poor performance around their required role. 25% of the Validators in the consensus group are ejected. That ejected 25% is replaced by available Validators. When performing their job correctly, they are rewarded with additional HNT.
Which Pool do I Stake my HNT with?
The Helium Network site outlines the various pools you can join to Stake your options. They preface the list with the below statement letting you know that any risks are on you when deciding to send your HNT to one of these pools.
See which Pool I staked my HNT with first, why I chose them and receive a 10% discount on fees with the link provided below.
As you can see there are numerous Staking Pools to choose from and commissions can be confusing. After registering and experimenting with several providers I chose to stake my HNT with a middle of the road priced pool that was easy to use and had a zero lock-up period.
The Helium-Staking app won me over with:
- Extremely easy to navigate UI, even if you don’t read any instructions
- Robust community that has already staked HNT and seems to have a high level of trust in the platform.
- No lock period — access to your HNT anytime
- Auto-staking which rolls your HNT rewards back into the pool daily
- Clean analytics dashboard around your HNT staking rewards
- Moderate commission structure
- HNT Staking calculator
I plan on testing Helium-Staking against one or two other pool options in the near future, which I will share a comparison after several quarters of staking.
If you want to experiment with staking some of your HNT you can use this link to get a 10% discount on your staking fees with Helium-Staking or use the code “EARNHNT” when signing up.
Predictions for Helium Staking in the Near Future:
My prediction for the 2nd quarter of 2022 is; as we see Helium Lite Hotspots and Helium 5G move into market increasing the value and interest in the Helium Network, we will see Coinbase adopt trading of HNT, and we will see both BinanceUS and Kucoin offer Helium Staking in addition to their already existing everyday trading of HNT. This will ultimately make it easier for HNT holders to stake a portion of their portfolio, which I will definitely participate in. The question that will remain is; will staking rewards decrease as more exchanges or more stakers’ join the party or will it not matter because HNT prices will fly as a result of the groundwork in infrastructure and partnerships that have been building?
What is the Binance HNT Staking Reward Structure?
Binance Staking launched back in July 2021. You can stake your HNT earning between 5% and 7.65% APY depending.
See the linked article for more details on How to Stake HNT with Binance:
Key elements of HNT Staking on Binance:
- Rewards accounted for daily
- APY is adjusted daily based on the on-chain staking rewards and the specific APY is subject to the page display on the day.
- Unlock period for Locked Staking products: 1 day.
- Locked Staking FAQ.
- Can I redeem my tokens early on Binance: Users can choose to redeem tokens prior to the full term. After choosing early redemption, the principal amount will be returned to the spot account, then the distributed interest will be deducted from the refunded principal. Due to different global time zones, it can take as much as 48–72 hours to receive your tokens.
Start Buying Helium MOBILE Token
- MEXC — is one of the only exchanges you can purchase the Helium MOBILE Token which has seen over 2000% growth in December 2023.
Start Buying and Trading HNT:
- Binance U.S. — The worlds largest exchange with the highest daily trade volume of the HNT token.
- Crypto.com — with a mobile first approach that trades hundreds of thousands of HNT daily.
- Kucoin — Is the fifth largest exchange by volume and offers access to a robust set of DeFi options. We wouldn’t be surprised to see Kucoin offer Helium staking in the future becoming the second major exchange to offer HNT Staking.
