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84 changes: 43 additions & 41 deletions docs/governance/vehnt.mdx
Original file line number Diff line number Diff line change
@@ -1,6 +1,6 @@
---
id: vehnt
title: Helium Vote Escrow Token
title: Helium Vote-Escrow Token
pagination_label: veHNT Position
sidebar_label: veHNT
description: Helium veHNT Documentation
Expand All @@ -12,10 +12,10 @@ import useBaseUrl from '@docusaurus/useBaseUrl'

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

In the Helium Ecosystem, HNT holders can receive veHNT positions by locking their HNT on-chain for a
specified period in exchange for voting power and subDAO delegation reward in the Helium DAO. After
the lock-up period ends and the locked position is closed, the amount of HNT is released to the
owner's Wallet and is once again transferable.
In the Helium Ecosystem, HNT holders can receive veHNT positions by locking HNT on-chain for a
specified period in exchange for voting power and subnetwork delegation reward in the Helium
Network. After the lock-up period ends and the locked position is closed, the amount of HNT is
released to the owner's Wallet and is once again transferable.

veHNT, or voting-escrowed HNT, is a position introduced as part of
[HIP-51](https://github.com/helium/HIP/blob/main/0051-helium-dao.md). veHNT was designed to empower
Expand All @@ -33,63 +33,65 @@ align stakeholders' interests with the Network's long-term success.
The amount of veHNT received when locking HNT depends on the lock-up period chosen by the user, with
longer lock-up periods resulting in a higher veHNT multiplier.

## SubDAOs
## Subnetworks

The Helium Network serves as the overarching system that enables a multitude of Networks (subDAOs)
to exist via the HNT token.
The Helium Network serves as the overarching system that enables a multitude of Networks
(subnetworks) to exist via the HNT token.
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Those who delegate their veHNT position to a subDAO are eligible to receive a portion of that
Those who delegate a veHNT position to a subnetwork are eligible to receive a portion of that
Network's token emissions.

Each subDAO governs a specific area of the Network. The distribution of HNT tokens available to the
subDAO is determined by the amount of veHNT delegated to each subDAO. HNT is minted in proportion to
the veHNT staked to each subDAO. Initially, two subDAOs are introduced: IOT and MOBILE. Voting on
matters specific to the IoT and Mobile networks will require veIOT and veMOBILE respectively.
Each subnetwork governs a specific area of the Network. The distribution of HNT tokens available to
the subnetwork is determined by the amount of veHNT delegated to each subnetwork. HNT is minted in
proportion to the veHNT staked to each subnetwork. Initially, two subnetworks are introduced: IoT
and Mobile. Voting on matters specific to the IoT and Mobile networks will require veIOT and
veMOBILE respectively.

### IOT subDAO
### IoT subnetwork
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The IOT subDAO focuses on the original vision of the Helium Network, supporting the growth and
development of IoT devices and applications. Delegating veHNT to the IOT subDAO will help fund
The IoT subnetwork focuses on the original vision of the Helium Network, supporting the growth and
development of IoT devices and applications. Delegating veHNT to the IoT subnetwork will help fund
projects and initiatives that further the IoT Ecosystem on the Helium Network.

### MOBILE subDAO
### Mobile subnetwork
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The MOBILE subDAO is dedicated to the growth and expansion of the Helium Network in the cellular
communications sector of the Network. Delegating veHNT to the MOBILE subDAO will help finance
The Mobile subDAO is dedicated to the growth and expansion of the Helium Network in the cellular
communications sector of the Network. Delegating veHNT to the Mobile subnetwork will help finance
projects and initiatives aimed at integrating Helium technology into mobile devices and Networks.

## Delegating veHNT

To earn rewards from the token emissions, veHNT holders must delegate their position to one or more
subDAOs. The lock-up period can range from 1 day to 48 months, with the longer lock-up periods
subnetworks. The lock-up period can range from 1 day to 48 months, with the longer lock-up periods
resulting in a higher veHNT multiplier. Users can also change their delegations at any time to
optimize their rewards from the subDAOs. For the accrued rewards to be sent to a veHNT holder's
optimize their rewards from the subnetworks. For the accrued rewards to be sent to a veHNT holder's
wallet, they need to be claimed manually.

veTokens can be managed through [Realms](/governance/staking-with-realms) using the in-app browser
on the [Helium Wallet App](/wallets/helium-wallet-app):
veTokens can be managed through [Helium Vote](/governance/staking-with-Helium-Vote) using the in-app
browser on the [Helium Wallet App](/wallets/helium-wallet-app):

- [HNT DAO on Realms](https://app.realms.today/dao/HNT)
- [IOT subDAO on Realms](https://app.realms.today/dao/IOT)
- [MOBILE subDAO on Realms](https://app.realms.today/dao/MOBILE)
- [HNT on Helium Vote](https://heliumvote.com/hnt)
- [IoT subnetwork on Helium Vote](https://heliumvote.com/iot)
- [Mobile subnetwork on Helium Vote](https://heliumvote.com/mobile)

### Impacts on subDAO Rewards
### Impacts on subnetworks Rewards

SubDAO rewards are calculated and paid to the lock-up position each 24-hour reward period, at
approximately 00:30 UTC. Currently, the IOT and MOBILE subDAO each have a 6% token emission pool for
veHNT stakers. This 6% is shared proportionately amongst all veHNT delegated to that subDAO at the
end of each epoch.
Subnetwork rewards are calculated and paid to the lock-up position each 24-hour reward period, at
approximately 00:30 UTC. Currently, the IoT and Mobile subnetworks each have a 6% token emission
pool for veHNT owners. This 6% is shared proportionately amongst all veHNT delegated to that
subnetwork at the end of each epoch.

**subDAO rewards may increase when:**
**subnetwork rewards may increase when:**
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- More veHNT is delegated in the subDAO you delegated to - your treasury gets more HNT.
- More Hotspot onboarding fees are burned in the subDAO you delegated to.
- More Network Data is transferred within the subDAO you delegated to.
- More veHNT is delegated in the subnetwork a veHNT owner delegated to - that treasury gets more
HNT.
- More Hotspot onboarding fees are burned in the subnetwork a veHNT owner delegated to.
- More Network Data is transferred within the subnetwork a veHNT owner delegated to.

**subDAO rewards may decrease when:**
**subnetwork rewards may decrease when:**
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- More veHNT is delegated in the subDAO you delegated to - your share is reduced.
- More veHNT is delegated to other subDAOs - other treasuries get more HNT.
- Your delegated veHNT decays over time after you enter cooldown (cliff mode)
- More Hotspots are online in other subDAOs that have a non-zero onboarding fee.
- More Network Data is transferred within other subDAOs.
- More veHNT is delegated in the subnetwork a veHNT owner delegated to - that share is reduced.
- More veHNT is delegated to other subnetworks - other treasuries get more HNT.
- The delegated veHNT decays over time after it has entered the cooldown.
- More Hotspots are online in other subnetworks that have a non-zero onboarding fee.
- More Network Data is transferred within other subnetworks.