How the Helium Network Halving Affects Miner Profitability

Most involved in the crypto space are familiar with the bitcoin halving and the fact that miner rewards are reduced by 50% every 210,000 blocks. History suggests that there is a positive correlation between bitcoin halving and increases in the price of bitcoin.

While bitcoin miners provide what is called Proof of Work for the network in a similar manner Helium ( HNT ) miners provide what is called Proof of Coverage ( POC ) for the network.

By reducing the rewards of mining HNT as more blocks are mined the halving ensures that the amount of HNT in circulation does not increase exponentially which tends to put upward pressure on its price.

The first halving of HNT took place on August 1, 2021. That means 2.5M HNT are being minted per month instead of the 5M during every month prior. As you can see below the Helium Network will experience another halving this year.

After the 2023 halving rewards will be reduced to 1.25M HNT in monthly miner rewards. It will be a small consolation to many in the mining community that in moving to the Solana blockchain validators will be replaced by oracles and there will…