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Helium

6.4/10

The OG DePIN wireless network — massive node deployment, but real mobile demand still lags the hype.

Updated: February 16, 2026AI Model: claude-4-opusVersion 1

Overview

Helium is widely considered the original DePIN project and remains the most referenced case study in decentralized physical infrastructure. Launched in 2019, it initially built a crowd-sourced LoRaWAN network for IoT devices, incentivizing individuals to deploy hotspots by rewarding them with HNT tokens. At its peak, the IoT network grew to over 900,000 hotspots — a remarkable achievement in crowd-sourced infrastructure deployment.

However, Helium's journey has been marked by significant pivots and growing pains. IoT demand on the LoRaWAN network never materialized at the scale needed to justify the massive hotspot deployment. In 2022–2023, Helium pivoted aggressively toward mobile 5G, launching Helium Mobile in partnership with T-Mobile as an MVNO offering $20/month unlimited plans. The entire network migrated from its own L1 blockchain to Solana in April 2023.

Helium's story is both inspiring and cautionary. It proved that crypto incentives can bootstrap massive physical infrastructure deployment, but it also demonstrated that building supply doesn't automatically create demand. The mobile pivot shows promise but faces the brutal economics of the telecom industry.

Technology

Architecture

Helium now operates as a set of Solana-based protocols. The network has two sub-networks: IoT (LoRaWAN) and Mobile (5G/LTE). Hotspot operators provide wireless coverage and earn tokens (IOT or MOBILE) based on coverage proofs and data transfer. These sub-tokens can be exchanged for HNT. The migration to Solana improved transaction efficiency and reduced the engineering burden of maintaining a custom L1.

AI/Compute Capability

Helium is not an AI compute network — it's a wireless infrastructure network. There's no direct AI capability, though the data generated by the network (coverage maps, location data, usage patterns) could theoretically feed AI models. Its inclusion in the AI & DePIN category reflects its status as the foundational DePIN project rather than AI-specific capabilities.

Scalability

The network has proven it can scale physical deployment — nearly a million IoT hotspots and tens of thousands of mobile radios demonstrate this. The challenge is scaling demand to match supply. The Solana migration addressed blockchain scalability, but the real scalability constraint is the quality and density of mobile coverage in useful locations.

Network

Node Count

Helium's IoT network has approximately 350,000–400,000 active hotspots (down from a peak of 900,000+ due to natural churn and the end of the initial mining gold rush). The Mobile network has approximately 20,000–30,000 active 5G/LTE radios. Combined, this makes Helium by far the largest physical node network in DePIN.

Geographic Distribution

IoT hotspots are globally distributed across 180+ countries, with the highest density in the US and Europe. Mobile radios are almost exclusively in the United States, concentrated in major metropolitan areas — this is where Helium Mobile's MVNO service operates and where T-Mobile roaming agreements apply.

Capacity Utilization

This is Helium's Achilles heel. IoT data transfer on the LoRaWAN network is extremely low — the vast majority of hotspots transfer negligible data. Mobile utilization is growing with Helium Mobile subscribers, but the coverage is patchy and most subscribers rely primarily on T-Mobile roaming rather than Helium's own radios. Honest utilization of the crowd-sourced infrastructure is estimated at single-digit percentages.

Adoption

Users & Revenue

Helium Mobile launched with aggressive $20/month pricing and gained initial traction, reportedly reaching over 100,000 subscribers by late 2024. However, subscriber churn has been significant, with many users attracted by the low price but frustrated by coverage gaps. Data transfer revenue from both IoT and mobile networks generates real income, but it remains a fraction of the token emissions rewarding operators.

Partnerships

The T-Mobile MVNO partnership is Helium's most significant relationship, providing nationwide roaming that makes the mobile service viable. Other partnerships include Dish Network (potential carrier partnerships) and various IoT companies using the LoRaWAN network (though volumes are small). The Solana ecosystem provides additional integrations.

Growth Trajectory

The trajectory is mixed. IoT hotspot count has declined from its peak, while mobile radio deployment continues to grow. Subscriber growth has plateaued and churn is a concern. The project needs to find a sustainable subscriber base willing to trade some coverage reliability for lower prices — a challenging value proposition against well-funded traditional carriers.

Tokenomics

Token Overview

HNT is the primary token with a maximum supply of 223 million. Sub-network tokens IOT and MOBILE are earned by respective hotspot operators and can be exchanged for HNT. HNT is burned to create Data Credits (DC), which are used to pay for data transfer — a burn-and-mint model.

Demand-Supply Dynamics

The tokenomics were redesigned multiple times. The current model ties HNT burn to actual data usage (via Data Credits), creating a direct demand link. However, actual DC burn from data transfer is a tiny fraction of HNT emissions — meaning the token economy is heavily subsidized by new issuance rather than sustained by real demand. This is the core sustainability question.

Incentive Alignment

Hotspot operators are incentivized to provide coverage, but the reward structure has been repeatedly adjusted as the network discovered that rewarding coverage alone (without demand) leads to gaming. Proof of Coverage mechanisms attempt to verify that hotspots provide useful wireless service, but the arms race between legitimate operators and reward farmers continues.

Decentralization

Node Operation

Hotspot deployment is permissionless — anyone can purchase approved hardware and deploy. However, the hardware requirement (specific approved hotspots for IoT, FCC-approved radios for mobile) creates a gated entry that's more permissioned than pure software participation. The mobile radios ($2,000–$5,000+) represent a significant investment.

Governance

Helium Improvement Proposals (HIPs) are voted on by HNT holders, and the community has been actively engaged. However, the Helium Foundation and Nova Labs (the core development company) drive the roadmap. The multiple pivots (IoT to mobile, L1 to Solana) were essentially leadership decisions ratified by the community rather than grassroots movements.

Data Ownership

Wireless coverage data and network maps are generally public. User data (mobile subscribers) is handled under standard telecom privacy practices. Hotspot operators don't access user traffic data. The decentralized nature of the infrastructure means no single entity controls the entire wireless network, though Nova Labs controls the mobile MVNO operations.

Risk Factors

  • Demand-supply imbalance: The network has orders of magnitude more supply (coverage) than demand (paying users), making operator economics unsustainable without heavy token subsidies.
  • Subscriber churn: Helium Mobile's low price attracts price-sensitive users who churn easily when coverage disappoints.
  • Telecom industry competition: Competing with T-Mobile, AT&T, and Verizon — companies with hundreds of billions in infrastructure — is a David vs Goliath challenge.
  • Token subsidy dependency: If HNT price declines significantly, operator rewards become insufficient to cover hardware and electricity costs, potentially causing a network death spiral.
  • Regulatory risk: Operating wireless infrastructure involves FCC compliance, spectrum licensing, and carrier agreements that add regulatory complexity.
  • Pivot fatigue: Multiple pivots (IoT → mobile, own chain → Solana) may erode confidence in long-term strategic direction.

Conclusion

Helium deserves enormous credit for pioneering the DePIN model and proving that crypto incentives can build real physical infrastructure at scale. Deploying hundreds of thousands of wireless nodes through crowd-sourced economics was a genuine innovation that inspired an entire category of projects. The network's physical scale remains unmatched in DePIN.

However, Helium also illustrates DePIN's central challenge: building supply is the easy part; creating demand is the hard part. The IoT network never attracted sufficient usage, and the mobile pivot, while promising, faces the brutal economics of competing with telecom giants. Subscriber numbers are growing but churn is high, and the gap between operator rewards and data transfer revenue means the token economy is still heavily subsidized.

Helium's score reflects its impressive network scale and pioneering status, balanced against the reality that real demand and sustainable economics remain works in progress. It's the most important project in DePIN history, but "important" and "good investment" are different things.

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