What Impact Will The Helium Network Migration Have On The Solana Blockchain?
Even though Solana’s SOL has experienced a significant price surge, it is no secret that the platform is now going through a difficult period. DeGods and y00ts were one of the biggest projects to quit Solana as more and more developers left the platform. A $3 million subsidy that y00ts received from Polygon made the transition easier.
Helium decided to move the blockchain to Solana public in September 2022, following the completion of the voting on HIP 70 (Helium Improvement Proposal), which received an 81% approval rate. Originally scheduled for Q4 2022, the switch to the Solana blockchain has now been postponed to Q1 2023.
Although the announcement of the relocation to Solana with the bulk of voting power going to a small number of people upset many in the Helium community, it will eventually happen whether they like it or not.
How Does Being A Miner Influence Your Ability To Make Money?
There will be additional benefits for hotspot owners. Hotspot owners on IoT and 5G networks will profit from the HIP 70 proposal’s annual return to the rewards pool of 2 million HNT. The plan also claimed that there would be a 6.85% rise in the amount of HNT incentive tokens given to miners or node operators after the migration.
Moreover, miners will have more mining opportunities once coverage becomes more reliable. Beacons and witnesses will occur continuously every hour instead of every few hours or days. All Helium users will benefit from the enhanced proof of coverage given by the Solana blockchain, which will increase the platform’s appeal to consumers and developers. Additionally, it will improve prospects for hotspot operators and miners, enabling them to receive greater payouts.
Due to the additional 2M HNT that will be contributed to the rewards pool each year and the fact that hotspots will beacon and witness in a much more dependable manner, mining revenues will increase. However, it is unclear how much the earnings will rise.
Despite the circumstances surrounding FTX, the Helium team continues to support the approved proposal and the decision to switch to the Solana blockchain and sees this as an opportunity for all network participants.
The idea that helium staking will end is the big issue that isn’t really being mentioned all that much. A validator who stakes the necessary 10,000 HNT will see a large loss of income; perhaps, the higher incentives will make up for it.
Leave a Comment