You may have heard people talking about having. What is halving, and why is it important for how much you can earn as a helium miner?
Helium restricts the amount of HNT that can be mined each month to 5 million coins. As you probably know, HMT is the cryptocurrency coin used by the helium network and the unit value that you are given for being a healing miner. You earn your rewards for doing things like proof of coverage, extending the network, transferring customers data packets, etc.
Every two years helium half the amount of HNT can be mined on the first of those halving events that come this August. So in 40 days, the amount of HNT that can be mined each month will reduce from 5 million coins down to 2.5 million coins.
Therefore, if you earn about 100 HNT each month after August 1, you will only make about 50 HNT.
On the face of it, halving sounds like a bad thing, but in reality, it's not that simple as everyone's earnings just halving. A reduction in the supply of HNT is likely to be something that drives up the price of each coin. Simple economic principles apply here a decrease in supply means an increase in price.
It's unlikely that the price of a chance he will double as a result of having, but there will likely be some increase in the coin price that will offset some of the impact of the reduced rewards given.
There are several reasons why this has been introduced and why this will happen again two years from August.
Halving incentifies the community to build as much of the network coverage as possible before August this year. This means that more hotspots are placed before the halving happens.
It also helps protect the long-term value of HNT as a coin and therefore provides more certainty for the healing project and those invested in it, and the coin.
So whilst the impending halving will impact what miners earn, it has to be viewed as a positive thing for the community as a whole, and we have to remember that the long-term success of the helium network is in everybody's interest.
