HNT Staking: Amplifying Votes and Passive Rewards

HNT Staking: Amplifying Votes and Passive Rewards

Prerequisites:

You need to have the Black Helium wallet, some HNT to stake, and at least .006 Solana to execute the transactions. In case you don't have Solana or enough, you can convert your HNT to Solana by visiting this link: https://www.heliumdeploy.io/blog/how-to-swap-hnt-to-sol-for-staking-and-other-transactions

I have sent 1 Sol to myself.

Gaining knowledge on staking in Helium is a crucial aspect to understand as it provides the authority to participate in voting during HIPS discussions, thereby influencing the direction Helium is headed towards. Additionally, staking rewards you with either IOT or MOBILE tokens, depending on the amount staked.

To begin with, it's important to understand what veHNT represents. It is the token used to cast votes, and the term "veHNT" stands for "vote escrow HNT." The number of votes you can cast is directly proportional to the amount of veHNT you possess, and the only way to acquire veHNT is by staking HNT. In addition to providing voting power, veHNT also offers daily rewards in the form of either IOT or MOBILE tokens, depending on your chosen stake delegation.

At the end of your lockup period, you will not receive any bonus HNT, only the original amount staked. However, you will earn bonus IOT or MOBILE tokens as daily rewards. Each subDAO, IOT, or MOBILE can assign up to 6% of their token emissions to veHNT holders who delegate to their subDAO. This is how you will receive your daily payments.

TLDR: In simpler terms, staking enables you to cast your vote and passively earn IOT and MOBILE tokens.

Now that you have a basic understanding, let's get started.

Open up your Black Helium wallet.

black helium wallet

Tap the globe icon in the bottom right.

helium wallet globe

Tap the link that ends with dao/hnt.

helium wallet subdao

Tap the dropdown menu.

helium wallet governance power

Select Helium.

helium wallet connect

Tap Connect.

helium wallet connect

Make sure the link at the top is: realms.heliumvote.com. Press Connect.

helium wallet connect button

Tap View.

my governance power view

Tap Lock Tokens.

helium wallet lock tokens

This section is crucial, so please pay close attention. Making a mistake here can result in accidentally locking up your tokens for an extended period. Therefore, exercise caution and be absolutely sure of what you are doing.

Now, let's discuss the difference between Decaying and Constant options.

Decaying mode implies that if you stake your HNT tokens for a specified period, say 6 months, after the completion of 6 months, your tokens will be available for you to withdraw. While in Decaying mode the veHNT bonus will decay over time until it reaches zero at the end of the locked period.

In contrast, Constant mode implies that if you stake your HNT tokens for 6 months, they will remain locked after 6 months. Even after two years, they will still be locked. When you want to withdraw them, the countdown for the initial lockup duration starts and veHNT bonus will start to decay until zero just like in Decaying mode.

For most people, Decaying mode is the preferred option since it allows them to access their tokens after the initial lockup duration.

Duration is self-explanatory. If you set the lockup period to 6m, it implies 6 months, and if it's set to 2y, it implies 2 years. The tokens will be inaccessible for that specific duration, regardless on whether you have chosen Decaying or Constant mode.

helium wallet lock length

The initial vote weight multiplier is determined by the duration of time for which you stake your HNT tokens. The longer the lockup period, the higher the multiplier.

Additionally, there is a 3x bonus multiplier that will be added to your stake, regardless of the amount you choose to lock up. However, please note that this bonus is only available until the 28th of April and is referred to as the landrush bonus. It will remain active for the duration of your lockup period. However, if you choose a constant 4-year lockup period, the bonus will only remain active for 4 years and not indefinitely until you decide to withdraw your stake.

6m = 12.5x 

If you lock 1 HNT for 6 months you will have 1 x 12.5x = 12.5 veHNT + landrush bonus(3x) = 37.5veHNT

If you lock 5 HNT for 6 months you will have 5 x 12.5x = 62.5 veHNT + landrush bonus(3x) = 187.5veHNT

4y = 100x

If you lock 1 HNT for 4 years you will have 1 x 100x = 100 veHNT + landrush bonus(3x) = 300veHNT

If you lock 5 HNT for 4 years you will have 5 x 100x = 500 veHNT + landrush bonus(3x) = 1500veHNT

 

 

 

Below is a table presenting the current rate schedule.

staking chart

Let's refocus on the task at hand. I'm going to use Decaying mode to stake 1 HNT for a year, which will yield me 25 times the rewards (plus a 3x landrush bonus, not shown below), resulting in a total of 75 veHNT.

locking tokens as decaying

After this stage, there is no option to revert. Tap on the "Approve" button.

helium wallet approve transaction

Got an error?

helium wallet error

You need more SOL in your Hellium wallet. Follow our guide here to convert HNT into SOL: https://www.heliumdeploy.io/blog/how-to-swap-hnt-to-sol-for-staking-and-other-transactions

Then come back and try again.

You will now be redirected to the previous screen where you will be able to locate your stake.

Tap on Delegate.

delegate

It's time to select the type of tokens we wish to receive on a daily basis for staking. The choice is entirely yours and can be modified at any point in the future. However, please bear in mind that you will forfeit your rewards for that particular day if you make changes. As an example, I will opt for IOT.

delegate tokens

Approve it.

approve transaction

Well done! You have successfully achieved your goal! Remember to return every day at approximately 8 pm EST to receive your rewards. Don't worry if you miss a day, your rewards will accumulate until you claim them. If you don’t see the rewards to claim it can take 24-48 hours depending on when you delegated to see the first rewards. Moreover, you now have the authority to vote in the HIPS and contribute to shaping Helium's future. To vote, head over to https://heliumvote.com/.

claim staked rewards

Want a nice guide about claiming your rewards? Check it out here: https://www.heliumdeploy.io/blog/learn-how-to-claim-your-helium-staking-rewards

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