As of February 15th, 2022, the JAG Network will solely pay out host rewards in HNT (Helium Tokens). Up until now, JAG has provided hosts with options to receive their converted hotspot earnings in USD, ETH, or BTC. This was primarily offered out of convenience for hosts who were unfamiliar with cryptocurrency wallets and exchanges. All JAG hosts will now receive their hotspot rewards as unconverted HNT tokens. Hosts still won’t incur any fees or additional costs associated with the HNT transfers.
Read on to learn why receiving payments in HNT can generate higher returns and how to set up your Helium wallet to manage your hotspot rewards.
Removing this feature might feel like an inconvenience at first, but there are long-term benefits to holding HNT rather than immediately converting to USD, BTC, or ETH. The price of HNT has risen over 1000% in the last year and the Helium Network continues to grow by roughly 80,000 hotspots each month. With over 500,000 hotspots now active in 163 countries, it’s safe to say that “The People’s Network” is quickly becoming a worldwide phenomenon.
Helium (HNT) is a unique cryptocurrency that’s tied to real-world value. Like all financial assets, its price is subject to market trends and the larger economy as a whole. Still, HNT’s fundamental value goes beyond trade volumes and market capitalization.
HNT is intrinsically valuable as long as the Helium Network remains actively utilized. While its price does fluctuate with the market, HNT retains inherent stability due to its connection with Helium’s Data Credits (DC) and its Burn and Mint Equilibrium (BME).
Data Credits are Helium’s “payment tokens”, which are required to transmit data across the network. Data Credits can only be purchased with HNT, which can be acquired through hotspot rewards or through exchanges via fiat currencies. This fosters a “petrodollar” paradigm whereby HNT’s value is fundamentally tied to the utilization of the Helium Network.
Each time a Data Credit is purchased in the Helium Network, the equivalent value of HNT is “burned”. Burning a token essentially removes it permanently from circulation. This establishes an equilibrium between the amount of HNT that is minted through hotspot rewards and the amount that gets removed from circulation whenever the Helium Network is actually utilized for transferring data. While the details of this token model might feel somewhat complex, the key point is that HNT will retain a certain degree of stability as long as companies are using it to purchase Data Credits.
In the past 30 days, roughly $5 million worth of DC was spent to transfer data across the Helium Network. Those spent Data Credits are directly tied to companies utilizing “The People’s Network” for their IoT solutions. While we can’t say for certain which Helium partners are actively spending their Data Credits, we do know that big names like Salesforce, Lime (scooters), and Airly are currently using Helium’s LoRaWAN to connect their IoT devices.
The growing expenditure of Data Credits is a great sign that the Helium Network is not just expanding in terms of the number of active hotspots. This shows that real IoT devices are currently transmitting data at a rate of $5 million worth of Data Credits per month. Unlike the vast majority of cryptocurrency-based companies out there, the Helium Network has real-world utilization that continues to expand every day.
You can learn more in our detailed discussions of Helium’s network utilization and its Data Credits/BME token model.
While it might be tempting to immediately realize your hotspot rewards in the form of USD or other cryptocurrencies, it’s very likely that HNT’s price will continue to rise in the long term. Of course, the price is inevitably subject to market fluctuations. However, the rapid expansion and consistent utilization of the Helium Network makes HNT a much safer and potentially more rewarding investment than other cryptocurrencies.
Another thing to consider is taxes. Realizing your hotspot rewards in the form of USD without holding that HNT for a year or longer makes them subject to short-term capital gains taxes. In the majority of cases, short-term capital gains taxes are higher than long-term. A good way to avoid overpaying for taxes on your Helium earnings is to hold your HNT for at least 12 months. And if you look at the token’s performance over the last two years, your HNT holdings will most likely be more valuable if you’re able to wait before you sell or trade.
Setting up your Helium wallet is as easy as downloading an app. The Helium app, available on iOS and Android devices, is a one-stop-shop for monitoring and managing your hotspot(s), learning about the Helium Network, and sending and receiving HNT.
If you’ve registered as a host with JAG, you should have received instructions on downloading the Helium app and adding your hotspot(s) to the dashboard. If you haven’t done so already, you can download the app here. Once installed and activated, your Helium app can officially function as an HNT wallet.
As a JAG hotspot host, you can log into the JAG Portal to view the amount of HNT earnings that you’re eligible to receive payment for. In order to receive payments to your Helium wallet, you’ll need to input the wallet address in the “Your Profile” section of the JAG Portal. To do this, login to the JAG Portal, click on “Your Profile” in the navigation bar, and then enter your Helium wallet address on the line that says “HNT”. You can find your Helium app wallet address by opening the app, tapping on the second button on the bottom navigation menu with the two arrows (as shown below), and then tapping on either the “Copy Address” or “Share” buttons.
Once you’ve identified the amount of HNT that you wish to send to your Helium wallet, please send an email firstname.lastname@example.org with the subject title “Payment Request - your name” from the same email address that’s associated with your JAG Portal account. In the email body, please list the exact amount of HNT you wish to withdraw as well as your full legal name. Keep in mind, you can always store your HNT earnings within the JAG Portal and access them at a later date. Your earnings will never disappear or become ineligible for transfer.
As soon as your HNT is in your Helium app wallet, you can use it however you’d like. Binance, FTX, Bitvavo, Kucoin, and Crypto.com are all major exchanges that allow for the trading of HNT. You’ll need to set up an account with one of the many eligible cryptocurrency exchanges in order to transfer your HNT away from your Helium app wallet. Once you transfer to an exchange, you can trade your HNT for other cryptocurrencies or sell it for USD.
Binance is by far the largest crypto exchange platform that accepts HNT at the moment. It’s relatively easy to set up an account, attach your bank information for USD payouts, or trade HNT for other types of cryptocurrency. Of course, you can always hold your HNT tokens in your Helium wallet or an exchange wallet and wait for your profits to grow as the network continues to expand in breadth and overall value.
If you’re not already a Helium Hotspot host with the JAG Network, you can register to receive a FREE hotspot by adding the device to your cart and completing the checkout as shown below. NOTE: Shipping costs are not included.
If you do currently host a Helium Hotspot, please check out our upgrades and accessories to optimize your HNT earnings.