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Update iot-token page post HIP 138 #1921

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Update iot-token page post HIP 138 #1921

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Update iot-token page post HIP 138
waveform06 Dec 9, 2024
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Update iot-token.mdx
waveform06 Dec 9, 2024
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waveform06 Dec 10, 2024
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55 changes: 36 additions & 19 deletions docs/tokens/iot-token.mdx
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Expand Up @@ -12,10 +12,16 @@ import useBaseUrl from '@docusaurus/useBaseUrl'

<img className="docsheader" src={useBaseUrl('/img/blockchain/iot_header.png')} />

IOT is the protocol token of the [Helium IoT Network][iot-network]. IOT was introduced to the Helium
Network through the community proposal [HIP-52][hip-52] and is further defined in subsequent
HIPs<sup>(</sup>[^1]<sup>,</sup>[^2]<sup>)</sup>. The first IOT tokens were minted following the
Solana migration on April 18, 2023.
IOT is currently the protocol token of the [Helium IoT Network][iot-network]. IOT was introduced to
the Helium Network through the community proposal [HIP-52][hip-52] and is further defined in
subsequent HIPs<sup>(</sup>[^1]<sup>,</sup>[^2]<sup>)</sup>. The first IOT tokens were minted
following the Solana migration on April 18, 2023.

## On January 15, 2025 in accordance with [HIP-138][hip-138] all IOT emissions will cease.

**And network participants will directly be rewarded in HNT tokens in the percentages defined in the
IOT emissions schedule, from the HNT awarded to the IOT network by the Utility score, defined in
[HIP-51][hip-51].**

[^1]: [HIP-70: Scaling the Helium Network][hip-70]
[^2]: [HIP-77: Solana Parameters][hip-77]
Expand All @@ -31,40 +37,49 @@ Network tokens.

## Redemption for HNT

Protocol tokens like IOT will always be backed by HNT and will convert to HNT. To enable this, each
network within the Helium Network is allocated a pool of HNT based on the Network Utility Score.
Protocol tokens like IOT will always be backed by HNT and will convert to HNT even after the return
to issuing HNT rewards directly. To enable this, each network within the Helium Network is allocated
a pool of HNT based on the Network Utility Score.

The redemption ratio is set algorithmically by treasury swap contracts. It can be calculated easily
by dividing the current amount of HNT in the network treasury by the current total amount of IOT
tokens in existence. The result tells how much HNT one will get per IOT token given up at the
network treasury.

$$\text{HNT per IOT} = \frac{\text{Total amount of HNT in treasury}}{\text{Total amount of IOT tokens existing}}$$
Once the IOT token ceases minting and there is no distribution of HNT to the IOT treasury then the
redemption or floor rate of IOT to HNT will be stabilized. And for as long as there is HNT in the
IOT treasury then the IOT token will have a value.

No automatic or required migration from IOT to HNT is planned.

The [Helium Wallet App][wallet-app] serves as the primary platform for exchanging IOT to HNT. This
transaction can also be performed directly through the Solana blockchain using the open-source
tooling found in the [Helium GitHub repositories][github].

## Token Allocation

IOT follows a similar minting schedule to HNT, however at a max supply of 200,000,000,000 (200B).
IOT follows a similar minting schedule to HNT, however at a max supply of approx 70,000,000,000
(70B), post [HIP-138][hip-138].

Year 1 for IOT started on August 1st, 2022.
Year 1 for IOT started on August 1st, 2022. Actual emissions did not start until April 18th, 2023.

The issuance is scheduled to have halvings every 2 years, aligning with HNT issuance halvings.
The issuance was scheduled to have halvings every 2 years, aligning with HNT issuance halvings. From
January 2025 the emissions percentages will remain the same but rewards will be directly in the HNT
Token.

The emissions schedule was created in [HIP-52][hip-52-emisions] and confirmed in
[HIP-77][hip-77-emisions] and is as follows:

| Year | IOT at Year Start | IOT Minted | Proof of Coverage <sup>(</sup>[^3]<sup>)</sup> | Data Transfer <sup>(</sup>[^3]<sup>)</sup> | Oracles <sup>(</sup>[^4]<sup>)</sup> | Operations Fund | veHNT Stakes |
| ---- | ----------------- | ---------- | ---------------------------------------------- | ------------------------------------------ | ------------------------------------ | --------------- | ------------ |
| 1 | 5B | 65B | 30% | 50% | 7% | 7% | 6% |
| 2 | 70B | 32.5B | 28.5% | 51.5% | 7% | 7% | 6% |
| 3 | 102.5B | 32.5B | 27% | 53% | 7% | 7% | 6% |
| 4 | 135B | 16.25B | 25.5% | 54.5% | 7% | 7% | 6% |
| 5 | 151.25B | 16.25B | 24% | 56% | 7% | 7% | 6% |
| 6 | 167.5B | 8.125B | 22.5% | 57.5% | 7% | 7% | 6% |
| 7 | 175.625B | 8.125B | 21% | 59% | 7% | 7% | 6% |
| Year | IOT at Year Start | IOT Minted | Proof of Coverage <sup>(</sup>[^3]<sup>)</sup> | Data Transfer <sup>(</sup>[^3]<sup>)</sup> | Oracles <sup>(</sup>[^4]<sup>)</sup> | Operations Fund | veHNT Stakes |
| ---------- | ----------------- | ---------- | ---------------------------------------------- | ------------------------------------------ | ------------------------------------ | --------------- | ------------ |
| 1 (2022-8) | 5B | 65B | 30% | 50% | 7% | 7% | 6% |
| 2 (2023-8) | 70B | 32.5B | 28.5% | 51.5% | 7% | 7% | 6% |
| 3 (2024-8) | 102.5B | 32.5B | 27% | 53% | 7% | 7% | 6% |
| 3 (2025-1) | As HNT | As HNT | 27% | 53% | 7% | 7% | 6% |
| 4 (2025-8) | As HNT | As HNT | 25.5% | 54.5% | 7% | 7% | 6% |
| 5 (2026-8) | As HNT | As HNT | 24% | 56% | 7% | 7% | 6% |
| 6 (2027-8) | As HNT | As HNT | 22.5% | 57.5% | 7% | 7% | 6% |
| 7 (2028-8) | As HNT | As HNT | 21% | 59% | 7% | 7% | 6% |

> Full token emissions can be viewed in the IOT section of this document: [Token Emissions as of
> Solana Migration][migration-emissions].
Expand All @@ -85,3 +100,5 @@ The emissions schedule was created in [HIP-52][hip-52-emisions] and confirmed in
https://github.com/helium/HIP/blob/main/files/0077/token-emissions-as-of-solana-migration.pdf
[wallet-app]: /wallets/helium-wallet-app
[explorer-stats]: https://explorer.helium.com/stats
[hip-138]: https://github.com/helium/HIP/blob/main/0138-return-to-hnt.md
[hip-51]: https://github.com/helium/HIP/blob/main/0051-helium-dao.md