Research Summary
The report provides an in-depth analysis of Helium’s decentralized ecosystem for wireless networks, focusing on its expansion into decentralized physical infrastructure networks (DePINs). It highlights the role of the Helium Network Token (HNT) and the subDAO framework in the ecosystem. The report also discusses the growth of Helium Mobile, its partnerships, and its competitive position in the decentralized telecommunications space.
Key Takeaways
Helium’s Decentralized Ecosystem and Tokenomics
- Decentralized Network Expansion: Helium is fostering a decentralized ecosystem for wireless networks, targeting the expansion into decentralized physical infrastructure networks (DePINs) beyond its current focus on telecommunications and IoT.
- Role of HNT: The Helium Network Token (HNT) is pivotal to the ecosystem, allowing for burning to obtain Data Credits, staking for governance, and redeeming for subDAO tokens.
- SubDAO Framework: SubDAOs within Helium can create their own native tokens, such as the IOT token for the IoT network and the MOBILE token for the Mobile network.
- Tokenomics: The Helium Network’s tokenomics include a max supply of 223 million HNT, with a two-year halving schedule, and an updated supply of 213 million HNT due to deflationary burns, ensuring a controlled inflation rate.
Growth and Performance of Helium Mobile
- Revenue Driver: Helium Mobile, part of the mobile subnetwork, has become a significant revenue driver, accounting for about 90% of the network’s revenue since its launch in December 2023.
- Strategic Partnerships: Strategic partnerships with entities like Telefónica are part of Helium Mobile’s growth strategy, aiming to broaden coverage and boost user engagement.
- Discovery Mapping and Boosting Locations: New initiatives such as Discovery Mapping and Boosting Locations are primarily focused on enhancing the Mobile network’s capabilities and user experience.
Helium’s Competitive Position in the Decentralized Telecommunications Space
- Market Dominance: Helium Mobile leads the decentralized telecommunications space with the largest market cap and lowest cost nodes among competitors like World Mobile, XNET, Drop Wireless, and Roam.
- Affordable Plans: Helium Mobile’s Group Family Plans, launched in May 2024, offer unlimited talk, text, and data nationwide for $20 per month, presenting a more affordable option compared to World Mobile’s $30 for 5GB data plan.
- Potential Competition: Starlink’s potential involvement in telecommunications with a satellite-supported product could present a bullish scenario for the industry.
Actionable Insights
- Exploring the Potential of DePINs: Helium’s focus on onboarding new wireless and DePIN networks is crucial for its continued growth. Stakeholders should explore the potential of these networks and their integration into the Helium ecosystem.
- Understanding the Role of HNT: The multifaceted role of HNT within the Helium ecosystem, including its use for purchasing Data Credits, staking for governance votes, and redeemability for hotspot hosts, is key to understanding the network’s operations and potential growth.
- Monitoring the Growth of Helium Mobile: Given the significant revenue contribution of Helium Mobile, stakeholders should closely monitor its growth, partnerships, and initiatives to enhance network capabilities and user experience.
