HNT Token Mining Rewards Spiraling Downwards In 2022

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Mining Helium Tokens

In 2021 many Helium miners earned more than $2,000 per month using Helium network gateway devices that cost around $500.

According to Benzinga.com, “free helium mining has been a hot topic in the crypto community this year with many miners earning thousands of dollars every month for simply purchasing a Hotspot and plugging it in.”

That’s because Helium’s low-power radio frequency connectivity network for Internet of Things devices exploded in popularity In 2021. 

The network has succeeded by using a peer-to-peer decentralized model that rewards the hosts of network gateway nodes with Helium’s native cryptocurrency tokens. 

Image via explorer.helium.com

This has powered the network to grow globally from less than 15,000 nodes at the beginning of 2021 to more than 700,000 nodes, at a fraction of the cost of traditional wifi or cellular networks.

In 2022, it has become more difficult for miners to make more than $1,000 or $2,000 per month. The Helium blockchain has undergone a planned “halving” event, in which every two years the number of helium tokens awarded is halved.

The competition has also increased.  Because of all the new hotspots (over 700,000 now), there are now many more hosts splitting up a pie that is half the size, in total quantity of HNT token rewards, that it was in 2021.


Crowded: Image by Grae Dickason from Pixabay 

Also, many mining locations have become too densely populated for Helium’s optimum network coverage algorithm. In these locations miners have to share the available rewards with their closest miner neighbors.

Helium is not going to stop paying out rewards to hotspot hosts, but most hosts will be earning less than the peaks seen in 2021.