Helium: What is HIP 39 and How Will Redenomination Impact $HNT
As Helium hotspot owners see less-and-less earnings of their Helium LoRaWAN mining devices, they are starting to ask more questions about the recently voted on HIP 39. HIP 39 was proposed as a “split” of 1000 to 1 redenomination of HNT.
If you are new to Helium or just not actively involved in the community yet you may be asking yourself, “What is a HIP?”, “What does redenomination mean?” and “What does LoRaWAN stand for?”. Well, let me shed some light…
HIP is an acronym for “Helium Improvement Proposal”.
Any member of the Helium Community is welcomed to create a HIP and participate in the governance process. HIPs are managed entirely from the HIP GitHub repository. HIP discussions also happen in the “Improvement Proposal” section of the Helium Discord. If you are not a part of the Helium Discord, I would highly recommend joining as there are valuable conversations happening daily. Gaining extra perspective from the Helium community will help you to earn more rewards with your miner as well as provide a more balanced outlook on how the Helium Network should develop over time.
Redenomination as described by Wikipedia is the process of changing the face value of banknotes and coins in circulation.
LoRaWAN stands for Long Range Wide Area Network. It’s a type of Low Power Wide Area Network (LPWAN) designed for capturing Internet of Things (IoT) data. LoRaWAN technology provides a far longer range than WiFi or Bluetooth connections and competes with cellular networks attempting to move dat from internet enabled devices in the street to the cloud.
Due to significant growth in the number of Helium Network hotspots, Helium miners have seen the number of tokens earned significantly diminish in the fourth quarter of 2021. This was the impetus for HIP 39. By implementing a 1000/1 $HNT redenomination, this change should accommodate for the millions of Helium devices coming to the network over the next couple of years, helping miners to feel they are being properly rewarded for their support of the network.
As of November 28, 2021:
- 357,000 Helium LoRaWAN devices activated worldwide
- 91,000 Helium LoRaWAN devices installed in the last 30 days
- 22 different Helium hotspot manufacturers
- 31 different Helium hotspots to choose from
- 3 million Helium hotspots on backorder and counting
Because of this extraordinary growth, @JMF proposed the redenomination via GitHub. A Vote was then put to the Helium Community. And… similar to other democratic votes we saw very few eligible people extend their right to have their voice be heard. Large wallet holders swayed the vote in their favor of the redenomination. Which in this case is not all bad and should not have much, if any negative impact on the rest of the miners within the Helium community. It should be noted that the 73.81% (5,540 Votes) to 26.19% (2,995 Votes) in favor of redenomination could have easily pushed the other direction if even a small percentage of individual miners who were opposed would have participated.
We know many crypto investors are looking for that big pop. It’s common that opportunity in crypto is often associated with ‘cheap’ prices. As most crypto/blockchain projects are just getting off the ground and not generating any substantive revenues, things like market cap, earnings and other business fundamentals are being overlooked, being replaced with pure speculation.
What does the HNT “split” mean for the HNT I have already earned or purchased?
Upon redenomination you will not lose any value in HNT. However, you will see the number of your HNT increase by 1000 times with the value decreasing by 1000 times.
How will redenomination impact the price of Helium [HNT]?
It’s my belief that Helium will see a quick 2X once the split occurs as opportunists will be looking for a quick win on the appearance of a cheaper price.
When will HNT split?
A specific date has not been announced. This is likely because there are many moving parts involved with making the necessary changes to Helium platform along with communicating those changes to all of the exchanges that currently support trading of HNT. However, we see the split occurring as early as December 2021.
Where can I buy Helium [HNT]?
- Binance U.S.
- Crypto.com
- Kucoin
- FTX U.S.
- Coinbase It’s been said that Helium has registered for the HNT token to be listed on Coinbase and is awaiting approval. We hoping to see a listing in early 2022.
