Helium Token Holders Approve Switch to Solana Blockchain

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  • The move is pegged to make Heli­um tokens more com­pat­i­ble with oth­er cryp­to applications 
  • More than 6,000 com­mu­ni­ty mem­bers vot­ed in favor of the migra­tion, while some 1,000 vot­ed against 

Token hold­ers in decen­tral­ized wire­less provider Heli­um have for­mal­ly vot­ed to move from its own Layer‑1 blockchain to the Solana protocol.

On Wednes­day, a major­i­ty com­mu­ni­ty vote of 81.41% offi­cial­ly rat­i­fied the Heli­um Improve­ment Pro­pos­al (HIP 70) aimed at devel­op­ing the net­work to meet user demand. Par­tic­i­pants had to stake the Heli­um token (HNT) in order to engage in the vote. 

The final results showed 6,177 mem­bers vot­ed in favor of the migra­tion by stak­ing some 12 mil­lion HNT ($57 mil­lion), while 1,270 vot­ed against it. 

The Heli­um Foun­da­tion said the switch will allow HNT to become more com­pat­i­ble with oth­er projects and cryp­to appli­ca­tions in decen­tral­ized finance (DeFi), non-fun­gi­ble tokens and oth­er Web3 applications. 

“Solana has a proven track record pow­er­ing some of the world’s most impor­tant decen­tral­ized ini­tia­tives and they were an obvi­ous choice for us to part­ner with,” Heli­um Foun­da­tion COO Scott Sigel said in a state­ment.

“Mov­ing to the Solana blockchain allows us to focus our efforts on scal­ing the net­work as opposed to man­ag­ing the blockchain itself.”

The Heli­um core devel­op­er team made the pro­pos­al, dubbed HIP 70, on Aug. 31. They said the move would “bring sig­nif­i­cant economies of scale through the vast range of com­pos­able Solana devel­op­er tools, fea­tures, and applications.” 

Helium still working on revenue streams amid Solana migration

Heli­um had attract­ed con­tro­ver­sy in the weeks lead­ing up to the pro­pos­al, with some ques­tion­ing the network’s rev­enue poten­tial. Promi­nent investors defend­ed the start­up, say­ing it was still build­ing infra­struc­ture and that rev­enue would come later. 

HNT, one of the project’s native tokens, is down 90% from its all-time high record­ed as cryp­to prices peaked last Novem­ber, cor­re­lat­ing with the rest of the dig­i­tal asset market.

In any case, as a result of Helium’s impend­ing migra­tion, all cur­rent ecosys­tem tokens, includ­ing HNT, MOBILE and IOT will be soon issued on Solana. 

Once the migra­tion is com­plet­ed, a new ver­sion of the Heli­um Wal­let App will be avail­able, the net­work said. The his­to­ry of the pre­vi­ous blockchain will still be avail­able to the public.


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  • Shali­ni Nagarajan

    Block­works

    Reporter

    Shali­ni is a cryp­to reporter from Ban­ga­lore, India who cov­ers devel­op­ments in the mar­ket, reg­u­la­tion, mar­ket struc­ture, and advice from insti­tu­tion­al experts. Pri­or to Block­works, she worked as a mar­kets reporter at Insid­er and a cor­re­spon­dent at Reuters News. She holds some bit­coin and ether. Reach her at [email pro­tect­ed]

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