Helium Implements Burn Mechanism and HNT Emission Halving for Deflationary Push

Helium, the decentralized wireless network operator, is taking steps toward a potentially deflationary tokenomics model for its native token, HNT. In a recent announcement from its co-founder and CEO Amir Haleem, Helium revealed that it plans to direct 100% of its mobile subscriber revenues toward burning HNT tokens. The initiative is set to launch "this week, barring any weird logistics," though it remains unclear whether tokens will be burned from the company’s treasury or purchased on the open market [1].

Previously, Helium had already implemented a key deflationary mechanism by halving the annual supply of HNT emissions from 15 million to 7.5 million in early August 2025. This emission halving aligns with the approach taken by other major blockchains and is often viewed as a tool to manage token supply growth and increase scarcity over time [1].

The new burn mechanism adds another layer by redirecting $2.3 million in monthly off-chain revenues—previously retained by Nova Labs, the parent company—to HNT token holders. Users pay in USD for data, which is converted into HNT and burned to generate "Data Credits," a utility token with a fixed price of $0.00001. This process removes tokens from circulation while enabling network activity [1].

According to Blockworks’ Nick Carpinito, the burn mechanism creates immediate deflationary pressure by tying token destruction to Helium Mobile’s subscriber base. While the exact implementation details—such as whether open market purchases will be used—remain unclear, the move represents a strategic shift in tokenomics design that integrates off-chain revenue directly into the HNT ecosystem [1].

The Helium network currently supports around 1.1 million daily users across 108,850 hotspots. The majority of its revenue is generated through WiFi carrier offload, where major carriers like AT&T and T-Mobile offload data traffic to Helium’s network in underserved areas. This model allows carriers to reduce infrastructure costs while improving coverage [1].

Together, the emission halving and token burn strategy could create a net deflationary effect, accelerating the timeline for HNT to become a net-deflationary asset. This development has drawn attention from analysts and investors who are increasingly focused on tokenomics models that prioritize scarcity and long-term value retention [1].

Source:

[1] Helium eyes a potential path to deflationary tokenomics https://blockworks.co/news/helium-potential-path-deflationary-tokenomics

[2] Rose Crypto Price Predictions for 2025 and Beyond https://www.bitdegree.org/crypto/tutorials/rose-crypto-price-prediction

[3] Top 20 Best Crypto to Buy Right Now (in August 2025) https://99bitcoins.com/cryptocurrency/best-crypto-to-buy