Important Community Update: HIP 10
On August 12th, we announced a big milestone achieved with the official launch of Data Credits on The People’s Network. You can read the full blog on the launch here.
Since then, important changes driven by the community have been implemented to address the reallocation of HNT rewards that went into effect when Data Credits went live.
What changed when Data Credits went live?
Prior to Data Credits going live, the 32.5% of HNT allocated to Hotspots transferring device data each month was divided up between Hotspot owners helping to build the network and participating in Proof-of-Coverage activities. When Data Credits were activated, that percentage shifted to reward only the Hotspots transferring device data, ultimately decreasing the earnings of those who had no devices connecting to their Hotspots. In addition, there was an increase in “not useful” sensor data spamming the network and earning a large portion of the 32.5% rewards for doing so.
Community Proposal: HIP 10.
In response, the community came together to initiate open discussions to address and debate the changes, as well as provide valuable feedback that culminated in a Helium Improvement Proposal called HIP 10. After discussion, a consensus was reached between DeWi, the community, and Helium. The proposal was approved on August 19th and implemented in an inactive state shortly after. As this recommendation has direct impact for Hotspot owners, please read on.
I’m a Hotspot owner. How does HIP 10 impact me?
With the activation of HIP 10 at 12pm PT today, Hotspots will now get rewarded a 1:1 ratio of HNT based on how much device data they transfer. For example, if you transfer 1 packet worth of Data Credit, you will receive the equivalent reward in HNT.
The remaining 32.5% that is not used to transfer device data will be reallocated to Hotspots mining and participating in Proof-of-Coverage to validate network coverage. As a Hotspot owner, you may notice an increase in HNT rewards as a result.
The community believes this update will continue to bootstrap the growth of the network, as well as maintain incentives for Hotspots that are transferring real device data. To learn more, read DeWi’s blog here.
Join the Conversation.
Thank you to the community for your active engagement and support over the past few weeks. We encourage everyone with new ideas and improvements to join the conversations on Discord and submit a proposal in the HIP GitHub repo.
