Helium Halving 2025: What It Means for Hotspot Operators, HNT Holders, and Network Governance
Summary
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*JpjSWqgNpXA5NFlj8FytUA.png" /></figure><p>On August 1st, the Helium Network will undergo another major milestone: the Third Helium halving. This scheduled event cuts daily HNT emissions in half and affects everyone in the ecosystem — from Hotspot operators to HNT stakers.</p><p>In this guide, we’ll explain what the halving is, how it impacts network economics and governance, and the steps you need to take to stay eligible for rewards.</p><p>Hear directly from the Helium core Protocol team in the <a href="https://x.com/helium/status/1945936117242667333">recorded X Spaces discussion</a>.</p><h3>What is the Helium Halving?</h3><p>The Helium halving is a deflationary mechanism that occurs every two years. On August 1st, the total amount of new HNT tokens emitted per day is cut in half.</p><p>Helium Improvement Proposal 20 <a href="https://github.com/helium/HIP/blob/main/0020-hnt-max-supply.md">(HIP-20)</a>, proposed and approved by the community on November 18, 2020, introduced two key features to the Helium Network’s design:</p><p>1. <strong>A maximum supply for HNT:</strong> capping the total number of tokens that can ever exist.</p><p>2. <strong>Halvenings:</strong> a mechanism that cuts the rate of new HNT emissions in half every two years on the Network’s genesis anniversary.</p><p>This halving, annual emissions will drop from 15 million HNT to 7.5 million HNT, bringing the daily HNT issuance down to 20,548. This event is part of Helium Network’s design, established back in the L1 days to create a fixed, predictable supply of HNT, ensuring long-term economic stability.</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*O8DEtgNaVs37FTMagWvD6g.png" /></figure><h3>How Does the Halving Affect Hotspot Operators?</h3><p>If you run a Mobile or IoT Hotspot, you’re likely wondering, “How will this affect my earnings?” The answer depends on how you earn rewards.</p><ul><li><strong>Proof-of-Coverage (PoC) Rewards:</strong> Your earnings in HNT from Proof-of-Coverage will be directly impacted. Assuming all other factors remain constant, the amount of HNT you earn for PoC activities will be halved, however be aware that the actual earnings rate may be reduced by more or less than half depending on additional network factors.</li><li><strong>Data Transfer Rewards:</strong> Unlike PoC rewards, data transfer rewards will remain unaffected by the halving. Mobile Hotspot owners are compensated for the utility they provide by offloading data to the network. For example, if a Mobile Hotspot was earning the HNT equivalent of $0.50 per gigabyte of data transferred before the halving, it will still earn roughly $0.50 worth of HNT per GB transferred.</li></ul><h3>Governance, Staking, and Your Role in the Network</h3><p>The halving is more than just an economic event; it’s deeply connected to Helium’s governance model, which relies on veHNT (vote-escrowed HNT).</p><h3>What is veHNT?</h3><p>Helium no longer follows a “one token, one vote” model. Instead, it uses veHNT, a system that rewards long-term commitment with greater voting power. When you lock your HNT tokens, you receive veHNT, which is your voting power. The longer you lock your tokens, the more veHNT (and thus, more voting power) you receive.</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*X-ifX5aiu79-9Mg5K-GtGg.png" /></figure><p><em>For example:</em></p><ul><li>Locking 1 HNT for 1 year will give you 25 veHNT.</li><li>Locking that same 1 HNT for 4 years will give you 100 veHNT.</li></ul><p>This system gives more weight to those who demonstrate a long-term belief in the network’s future.</p><h3>What is Delegation?</h3><p>As a veHNT holder, you hold the “brains of the network.” You get to decide how the daily HNT emissions are allocated between the two sub-networks: IoT and Mobile. This is done through delegation.</p><p>You delegate your veHNT voting power to the sub-network(s) you believe have the most potential for future growth and data credit burn. The total HNT emissions are then split proportionally based on the total delegation to each sub-network. Currently, the split is roughly 75% to Mobile and 25% to IoT.</p><p>Think of delegation as a strategic decision, you’re deciding where emissions can drive the most growth. Should more incentives go to deploying new Mobile Hotspots, or should they reinforce the established IoT network? You can even split your delegation between both if you see potential in each.</p><h3>How to Earn Rewards on Your Locked HNT</h3><p>Locking HNT gives you veHNT — but to earn rewards, you must delegate and vote.</p><ol><li>Delegate: You <em>must</em> delegate your veHNT to a sub-network (or split it to both).</li><li>Vote: You must vote on active Helium Improvement and Release Proposals (HIPs and HRPs).</li></ol><p>To make voting easier, you can delegate your vote to a proxy. A proxy is a trusted community member or group that will vote on your behalf, ensuring you remain eligible for rewards even if you miss a proposal. Don’t agree with your proxy? You can override their vote anytime. It is highly recommended to set a proxy as a backup to ensure you don’t miss out on rewards.</p><p>An important clarification: Your rewards now also depend on your participation — not just where you delegate. This decoupling encourages voting based on what’s best for the network, not personal yield. This was changed to encourage veHNT holders to vote for the long-term health of the entire ecosystem, rather than trying to optimize personal rewards.</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*hQB3hGTYJzGx2TlcElyUqA.png" /></figure><h3>IMPORTANT ACTION: Re-Delegate by August 1</h3><ul><li>All delegations previously made before July 1, 2025 reset on August 1, 2025</li><li>If you don’t re-delegate and assign a proxy, you won’t earn rewards</li><li>Set delegation + proxy in the Helium Wallet App or at <a href="http://heliumvote.com">heliumvote.com</a></li></ul><h3>How to Manage Your Position:</h3><p>You can manage your veHNT position, delegations, and voting proxies in two primary places:</p><ul><li><strong>The Helium Wallet App:</strong> Available on <a href="https://apps.apple.com/us/app/helium-wallet/id1609525848">iOS</a> and <a href="https://play.google.com/store/apps/details?id=com.helium.wallet.app&hl=en_US">Android</a>. You can use the in-app browser to access the Helium Vote website.</li><li><strong>Helium Vote Website:</strong> Visit<a href="https://heliumvote.com/"> heliumvote.com</a> and connect your wallet (such as Phantom or Solflare).</li></ul><p>The halving is a fundamental part of the Helium Network. By understanding how it works and re-delegating your staked HNT tokens, you help steer the future of the People-Powered Network.</p><img alt="" height="1" src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=8ecaa1fff464" width="1" /><hr /><p><a href="https://blog.helium.com/helium-halving-2025-8ecaa1fff464">Helium Halving 2025: What It Means for Hotspot Operators, HNT Holders, and Network Governance</a> was originally published in <a href="https://blog.helium.com">The Helium Blog</a> on Medium, where people are continuing the conversation by highlighting and responding to this story.</p>
<figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*JpjSWqgNpXA5NFlj8FytUA.png" /></figure><p>On August 1st, the Helium Network will undergo another major milestone: the Third Helium halving. This scheduled event cuts daily HNT emissions in half and affects everyone in the ecosystem — from Hotspot operators to HNT stakers.</p><p>In this guide, we’ll explain what the halving is, how it impacts network economics and governance, and the steps you need to take to stay eligible for rewards.</p><p>Hear directly from the Helium core Protocol team in the <a href="https://x.com/helium/status/1945936117242667333">recorded X Spaces discussion</a>.</p><h3>What is the Helium Halving?</h3><p>The Helium halving is a deflationary mechanism that occurs every two years. On August 1st, the total amount of new HNT tokens emitted per day is cut in half.</p><p>Helium Improvement Proposal 20 <a href="https://github.com/helium/HIP/blob/main/0020-hnt-max-supply.md">(HIP-20)</a>, proposed and approved by the community on November 18, 2020, introduced two key features to the Helium Network’s design:</p><p>1. <strong>A maximum supply for HNT:</strong> capping the total number of tokens that can ever exist.</p><p>2. <strong>Halvenings:</strong> a mechanism that cuts the rate of new HNT emissions in half every two years on the Network’s genesis anniversary.</p><p>This halving, annual emissions will drop from 15 million HNT to 7.5 million HNT, bringing the daily HNT issuance down to 20,548. This event is part of Helium Network’s design, established back in the L1 days to create a fixed, predictable supply of HNT, ensuring long-term economic stability.</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*O8DEtgNaVs37FTMagWvD6g.png" /></figure><h3>How Does the Halving Affect Hotspot Operators?</h3><p>If you run a Mobile or IoT Hotspot, you’re likely wondering, “How will this affect my earnings?” The answer depends on how you earn rewards.</p><ul><li><strong>Proof-of-Coverage (PoC) Rewards:</strong> Your earnings in HNT from Proof-of-Coverage will be directly impacted. Assuming all other factors remain constant, the amount of HNT you earn for PoC activities will be halved, however be aware that the actual earnings rate may be reduced by more or less than half depending on additional network factors.</li><li><strong>Data Transfer Rewards:</strong> Unlike PoC rewards, data transfer rewards will remain unaffected by the halving. Mobile Hotspot owners are compensated for the utility they provide by offloading data to the network. For example, if a Mobile Hotspot was earning the HNT equivalent of $0.50 per gigabyte of data transferred before the halving, it will still earn roughly $0.50 worth of HNT per GB transferred.</li></ul><h3>Governance, Staking, and Your Role in the Network</h3><p>The halving is more than just an economic event; it’s deeply connected to Helium’s governance model, which relies on veHNT (vote-escrowed HNT).</p><h3>What is veHNT?</h3><p>Helium no longer follows a “one token, one vote” model. Instead, it uses veHNT, a system that rewards long-term commitment with greater voting power. When you lock your HNT tokens, you receive veHNT, which is your voting power. The longer you lock your tokens, the more veHNT (and thus, more voting power) you receive.</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*X-ifX5aiu79-9Mg5K-GtGg.png" /></figure><p><em>For example:</em></p><ul><li>Locking 1 HNT for 1 year will give you 25 veHNT.</li><li>Locking that same 1 HNT for 4 years will give you 100 veHNT.</li></ul><p>This system gives more weight to those who demonstrate a long-term belief in the network’s future.</p><h3>What is Delegation?</h3><p>As a veHNT holder, you hold the “brains of the network.” You get to decide how the daily HNT emissions are allocated between the two sub-networks: IoT and Mobile. This is done through delegation.</p><p>You delegate your veHNT voting power to the sub-network(s) you believe have the most potential for future growth and data credit burn. The total HNT emissions are then split proportionally based on the total delegation to each sub-network. Currently, the split is roughly 75% to Mobile and 25% to IoT.</p><p>Think of delegation as a strategic decision, you’re deciding where emissions can drive the most growth. Should more incentives go to deploying new Mobile Hotspots, or should they reinforce the established IoT network? You can even split your delegation between both if you see potential in each.</p><h3>How to Earn Rewards on Your Locked HNT</h3><p>Locking HNT gives you veHNT — but to earn rewards, you must delegate and vote.</p><ol><li>Delegate: You <em>must</em> delegate your veHNT to a sub-network (or split it to both).</li><li>Vote: You must vote on active Helium Improvement and Release Proposals (HIPs and HRPs).</li></ol><p>To make voting easier, you can delegate your vote to a proxy. A proxy is a trusted community member or group that will vote on your behalf, ensuring you remain eligible for rewards even if you miss a proposal. Don’t agree with your proxy? You can override their vote anytime. It is highly recommended to set a proxy as a backup to ensure you don’t miss out on rewards.</p><p>An important clarification: Your rewards now also depend on your participation — not just where you delegate. This decoupling encourages voting based on what’s best for the network, not personal yield. This was changed to encourage veHNT holders to vote for the long-term health of the entire ecosystem, rather than trying to optimize personal rewards.</p><figure><img alt="" src="https://cdn-images-1.medium.com/max/1024/1*hQB3hGTYJzGx2TlcElyUqA.png" /></figure><h3>IMPORTANT ACTION: Re-Delegate by August 1</h3><ul><li>All delegations previously made before July 1, 2025 reset on August 1, 2025</li><li>If you don’t re-delegate and assign a proxy, you won’t earn rewards</li><li>Set delegation + proxy in the Helium Wallet App or at <a href="http://heliumvote.com">heliumvote.com</a></li></ul><h3>How to Manage Your Position:</h3><p>You can manage your veHNT position, delegations, and voting proxies in two primary places:</p><ul><li><strong>The Helium Wallet App:</strong> Available on <a href="https://apps.apple.com/us/app/helium-wallet/id1609525848">iOS</a> and <a href="https://play.google.com/store/apps/details?id=com.helium.wallet.app&hl=en_US">Android</a>. You can use the in-app browser to access the Helium Vote website.</li><li><strong>Helium Vote Website:</strong> Visit<a href="https://heliumvote.com/"> heliumvote.com</a> and connect your wallet (such as Phantom or Solflare).</li></ul><p>The halving is a fundamental part of the Helium Network. By understanding how it works and re-delegating your staked HNT tokens, you help steer the future of the People-Powered Network.</p><img alt="" height="1" src="https://medium.com/_/stat?event=post.clientViewed&referrerSource=full_rss&postId=8ecaa1fff464" width="1" /><hr /><p><a href="https://blog.helium.com/helium-halving-2025-8ecaa1fff464">Helium Halving 2025: What It Means for Hotspot Operators, HNT Holders, and Network Governance</a> was originally published in <a href="https://blog.helium.com">The Helium Blog</a> on Medium, where people are continuing the conversation by highlighting and responding to this story.</p>