Multicoin interprets Helium's new token: How is MOBILE different from HNT?

Original author: Tushar Jain, partner of Multicoin

Original compilation: Shenchao TechFlow

Helium recently launched a new Token , MOBILE. People have been questioning the relationship between this new Token and HNT, let me explain the relationship between them here.

· HNT remains the primary economic asset in the Helium ecosystem, and the only way to pay for network data transfers is to burn HNT.

· MOBILE is Helium subDAO governance token, the purpose is to realize the separation of governance.

subDAO will also have an IOT subDAO with its own Token: IOT. Each wireless network subDAO can be governed separately to facilitate better decision making by the DAO.

Each Helium subDAO manages its own Proof-of-Coverage rules, data pricing, and hotspot mining reward distribution mechanism. This governance is done by voting with subDAO Token: MOBILE or IOT.

There will be more Helium subDAOs for new wireless technologies in the future.

Helium 5G hotspots earn MOBILE instead of HNT. Does this mean that MOBILE is cannibalizing the value of HNT?

No.

The only way to pay for data transfers in the Helium network is to burn HNT. This means that HNT still maintains the same burning and casting balance it always has.

So, where does the value of MOBILE Token come from? There are 2 reasons why MOBILE is valuable:

1. HNT can be redeemed through programmatic treasury;

2. In subDAO Utility, currently, is governance only. In the future, there may be more utility, such as proof of hotspots with staking to increase coverage participation.

How is the redemption price for MOBILE calculated?

All the HNT rewards earned by 5G hotspots within the specified time are allocated to a pool, and MOBILE holders can burn their MOBILE to get rewards in the pool Prorated HNT in .

For example, if all 5G hotspots get a total of 100 HNT, and there are 10,000 MOBILE unused, it means you can burn 100 MOBILE to get 1 HNT.

This architecture provides a value floor price for MOBILE, and MOBILE can be traded on top of its floor price according to its utility.

In summary, the value acquisition of HNT has not changed. Just having a new subDAO token layer, such as MOBILE, that will allow the Helium community to manage many wireless networks more efficiently.

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