Update iot-token.mdx

Adding calculation for treasury redemption rate
helium · Oct 27, 2024 · 7116210 · 7116210
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commit 7116210
Showing 1 changed file with 9 additions and 3 deletions.
diff --git a/docs/tokens/iot-token.mdx b/docs/tokens/iot-token.mdx
@@ -32,9 +32,15 @@ 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. The
-redemption ratio is set algorithmically by the treasury swap contacts based on this Network Utility
-Score.
+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}}
+$
 
 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