Why I Invested more HNT into Helium-Staking
HELIUM STAKING IS NO LONGER RELEVANT AS OF HELIUM’S MIGRATION TO SOLANA ON APRIL 18, 2023.
I recently decided to invest more HNT into the Helium-Staking validator pool for a few reasons. First, I believe in the long-term success of the Helium network. Second, I like the UX of the Helium-Staking app and how it makes it easy to delegate my tokens and monitor my investment. Finally, I believe that the validator nodes play an important role in the network and I want to help support them.
My original idea was to test Helium Rising as a similar validator partial staking pool to Helium-Staking, comparing the performance of each to verify yield and reliability before investing more heavily into the “best” option. Due to both the shear ease of setup with the Helium-Staking pool and the more laborious account creation and process of moving HNT into the Helium Rising pool I decided to bypass the Helium staking comparison test and invest more into Helium-Staking. In all fairness to Helium Rising, there are likely reasons for their extra steps and processes to join their validator network to begin earning HNT. This is not a dig at them as it is more about how easy Helium-Staking made it to get going. I admittedly have a short attention span and am crushed for time and therefor skipping a step suits my constraints.
Helium Rising vs Helium-Staking Admin Fee Comparison
- Helium Rising Admin Fee = 5%
- Helium-Staking Admin Fee = 4% + Validators operational costs
To further reduce your staking admin fees with Helium-Staking use this link to get a 10% discount or use the code “EARNHNT” when signing up.
How much HNT can I earn staking?
If you aren’t a large holder (in the thousands of HNT) earnings by staking HNT will seem slight at best. In my last round of investment, I increased my position by 10 times so that I would have a more meaningful yield coming out of the Helium-Staking pool. Having said that, being that I have relinquished control of the HNT I posted to Helium-Staking and the riskiness involved with everything Crypto, I only have 25% of my over HNT holdings staked. I want to earn more HNT but not at the risk of losing a portion if not all of the Helium I have mined and purchased to date.
The ROI with Helium-Staking
With my recent increase in investment, It looks like I am earning 4.5% APY. This may not seem like a lot but when you look at it over the course of a year it starts to look much more appealing with the potential for the HNT price to increase by 8–10 times. I personally like to look at Verizon’s valuation as a U.S. based telco business of roughly $200 Billion as of May 13, 2022 and then consider Heliums potential as a worldwide communication provider and what their potential equity (Nova Labs)/token (Helium) valuation might look like. I think it’s not difficult to see the potential for a trillion dollar valuation putting the HNT token in the $100+ category. this is assuming that Verizon and AT&T join Dish Network (Boost Mobile) in leveraging Helium’s 5G deployment and backhaul support for growing coverage across the U.S. and later expanding into partnerships with other telcos globally. This doesn’t provide a clear ROI but under this scenario, collecting as much HNT now and holding over the longterm makes a little bit of HNT worth a lot.
HNT or inflation
While the ROI with Helium-Staking isn’t life-changing today, it is a much better use of my HNT than simply holding it in my wallet or selling for the equivalent value in USD. I like that I can easily delegate my HNT to a validator pool and know that it is helping to support the network. I also appreciate the transparency of the Helium-Staking app and how easy it is to monitor my investment. Overall, I am recommending the partial staking option, especially as prices linger in the teens when you are likely to not sell in hopes that we see upward moment as Helium Light hotspots and Helium 5G tokenomics are rolled out.
Start Buying and Trading HNT (While at a 6 month low):
- 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.
