The DeWi alliance and Helium community recently received a pair of proposals that aim to adjust the economic distribution of HNT. The proposals both take aim at the current structure which provides an incentive to arbitrage with “artificial” sensor data in order to gain increased HNT rewards.

We’d like to first thank community members abhay and charlesfayal for taking the time to submit these proposals and all of the community members who engaged with these proposals.

There has been rigorous debate on the economic structure and the two proposals to alter it. We’d like to thank the entire Helium community for engaging in this debate, which occurred in #hips on the Helium Discord, Reddit and in the official GitHub repository of HIPs itself.

The primary concerns discussed were as follows:

  • either minimizing or removing Data Credit arbitrage
  • the effect of both proposals on net HNT inflation
  • whether arbitrage as a means for demand-side incentivization could work
  • whether a per-Hotspot cap is a reasonable compromise
  • whether providing a 1:1 ratio of rewards is limiting to the value of HNT

Based on the above discussion and the rough consensus achieved by the community and Helium Network stakeholders, the DeWi Alliance is formally recommending the following actions:

  • implement HIP 10 which defines a proportional reward scheme for Data Transfers
  • move HIP 10 into accepted state in the HIP repo
  • request that Helium Protocol core developers begin immediate implementation of the functionality
  • deploy the change as soon as is safely possible

Along with the overwhelming support of the community, our belief is that this will remove the Data Credit arbitrage, create additional incentive for Proofs of Coverage so the network can grow, and allow the network to grow in a more organic fashion.

We’d like to once again thank the community for their active engagement and contributions to the Helium Network.


DeWi Alliance

Enabling the future of wireless connectivity