On March 1, 2023, we announced the updated HAI Tokenomics that addresses the new strategic track of our Hacken.AI ecosystem: building a public goods community of like-minded individuals who contribute to building Web3 trust, transparency, and security.

For an end-user, Hacken.AI is an X-ray to verify tokens’ reliability through data, tools, and community.

Let’s capture the main points described in the Tokenomics Paper to obtain an overview of the HAI token use cases.

What Is HAI Token?

HAI is a native and utility token that accesses the Hacken.AI ecosystem consisting of cybersecurity products, services, and the Membership Program. Being an engine for ecosystem operations and development, the token is underlined by deflation and liquidity-growth mechanisms.

Token symbol: HAI

Token type:

VIP180 0xacc280010b2ee0efc770bce34774376656d8ce14

BEP-20 0xaa9e582e5751d703f85912903bacaddfed26484c

ERC-20 0x05Fb86775Fd5c16290f1E838F5caaa7342bD9a63

HAI use cases: Product utility, Work-2-Earn, governance.

Total supply: 1,000,000,000 HAI

Circulating supply (March 29): 646,840,772 HAI

The latest update on HAI has led to the transformation of the token product-utility, Work-2-Earn, and governance nature, enabling the ecosystem products to operate and be accessible for holders. Tokenomics accommodates the interests of Web3 players’ variety who pursue the goal of building Web3 Trust and increasing transparency, alongside implementing mechanisms for liquidity growth and deflation. Products are the core of the Hacken ecosystem as it creates HAI utilities, solves users’ goals, and unites the company with its community. Every product has its own HAI utility and use case that drives demand.

HAI Token Use Cases

Product utility

Trust Army (a platform that provides users with Web3 data collection tasks and education): HAI is used for staking, rewards boosting, and receiving accesses inside the platform. Staking provides users with Trust Fuel, a unit that allows completing more reports within the 4 levels in Hacken Membership Program, and for locking of tokens to submit Requests-for-Proposal.

hDAO (Hacken Decentralized Autonomous Organization): HAI is used for staking to obtain Voting Power with 1–3% APYs, powering decision-making.

ETD (a cybersecurity token that bakes the time of the Hacken Smart Contract Audit Team): the HAI use case that enables auditing services purchase with HAI token and organic market demand and liquidity growth.

HackenProof (the Hacken bug bounty platform): the token use case motivates ethical hackers to join the Membership Program, purchase HAI Coupons, and access extra bug bounty rewards in USDT.

Hacken Extractor (an on-chain smart contract security monitoring system): the token use case allows business parties to benefit from HAI-based subscriptions or Hacken Membership and pay 20–30% less.

hAI (ex. HackenAI): the mobile key to the HAI ecosystem management that grants Membership for staking to unlock a range of benefits and privileges.

Governance

HAI is a governance token in hDAO. The use case of HAI accesses the voting process and participation in HackenDAO for wide-ranged Web3 users.

Work-2-Earn

HAI is a Work-2-Earn token in Trust Army. The use case enables the Trust Army functions for wide-ranged Web3 users, where HAI figures as the payment method for Trust Army users for submitted reports with collected data on Web3 projects.

The Tokenomics Paper provides HAI distribution for Q1 2023

Being evolving to hDAO, we’ve announced the token distribution to the Treasury for 2023

More details in our Tokenomics Paper.

Now, the Hacken.AI team follows the Token Roadmap on schedule and works on products set out in Q1/Q2 2023.

To learn more and discuss the Tokenomics Paper, join Hacken Discord.

The Hacken goal is to create a strong and trustworthy ecosystem to pave the way for the future of Web3. In 2022, we decided to change the HAI structure and community to its roots by creating a fully decentralized organization that manages HAI. Established in 2017, the Hacken community is evolving and scaling into hDAO.

In the Web3 industry, transparency is the key. Without it, the space will continue to be plagued by inferior projects with weak concepts, fraudulent activities, poor tokenomics, and scams that harm investors and the community. While data is critical to identifying bad actors, it’s so only through a motivated and fair community that this open, up-to-date, well-structured, and easy-to-use data can be collected and processed. That is why we released the new HAI Tokenomics, aiming to build Verifiable Trust in Web3. with the support of public goods and community-driven initiatives.

The new Hacken Tokenomics represents a crucial step forward for Hacken and the industry as it pioneers a new standard for its incentivization. The Tokenomics structure is designed to connect Hacken products, and encourage holders to participate in the ecosystem. With its transparent, fair, and deflationary structure, the new Tokenomics attracts a wide range of individuals committed to contributing to the industry.

Starting in 2023, HAI holders will be contributing to the Web3 industry, fortifying security, and developing public goods initiatives.

The new Tokenomics for HAI is set to revolutionize the HAI token and transform it into a Work-2-Earn, governance, and product-utility token. The new tokenomics structure connects all existing products with new ones, sharing a common idea, functions, and token mechanisms and pursuing the following goals:

• Convert the HAI token into an incentivized asset that brings value to the industry
• Implement a DAO governance model
• Connect B2B services success with HAI token
• Structure existing and future products with one key idea and build bridges with common mechanics for them
• Enhance current HAI token utilities such as Membership, special education programs, and services access;
• Create clear and high-powered deflationary mechanisms.

HAI Ecosystem Products and Utilities

The main HAI ecosystem products include ETD, HackenProof, Extractor, Trust Army, hDAO, and hAI as the core of the Hacken ecosystem, creating HAI utility, solving user goals, and uniting the company with its community.

ETD

The first cybersecurity stablecoin that bakes time for auditors’ teamwork — ETD (Engineering Team Day), connecting the Hacken business services with the HAI token.

Utility: the innovative offer allows B2B clients to buy 1 workday from a Hacken Auditor team of 4 people for 1 ETD at a fixed HAI/USDT price and merges Hacken business growth success with 3 pillars of successful Tokenomics: the organic market buying process, permanent liquidity growth, and deflationary mechanisms.

Hacken Extractor

A smart contract monitoring system by Hacken is designed to track code execution, transactions, and contract upgrades with over 1,200 potential users.

Utility: the system will be available for use with the HAI subscription plan, providing a 20% discount.

HackenProof

A bug bounty platform designed to find vulnerabilities and test the security levels of Web3 and Web2 products.

Utility: a new utility encourages white hat hackers to get higher rewards for detecting vulnerabilities through HAI Coupons purchasing. The Coupons come in three ranks: Rare, Epic, and Epochal, with higher membership levels providing access to more valuable coupons. All the Coupons offer a 5% bonus to the bounty.

Trust Army

A public goods initiative dedicated to improving the security and transparency of the whole Web3. It consists of two parts: Academy and Missions. Academy offers to gain web research skills and knowledge, while Missions focus on researching potential tokenomics and circulation supply issues like suspicious activity in Web3 projects.

Trust Army enables top players in the industry to convey timely, fresh, and objective information about the health of projects in the market, marking the Hacken contribution to Web3 development and its trustworthiness.

Utility: a Work-2-Earn utility allows Trust Army Workers and Validators to get rewarded for their correct reports and reports’ validation. Trust Fuel — another key component of the Trust Army utility, providing holders with daily allowance to access Trust Army Tasks.

hDAO

hDAO is the decentralized autonomous organization of the Hacken ecosystem, which plays a pivotal role in the whole Hacken ecosystem, as it is the main driver for future ecosystem and HAI token development. All HAI holders can offer incentives, submit RFPs, and vote on Proposals with Voting Power, ensuring a democratic decision-making process.

Hacken invites all Web3 enthusiasts to become a part of hDAO to join the development of our cybersecurity initiatives that will be valuable and on-demanded for each industry’s player.

Utility: an essential utility for hDAO that provides Voting Power (VP) to participate in hDAO governance with a 3% APY or delegate their VP to other users, known as Delegates, with a 1% APY. Another novelty lies in HAI locking for Requests for Proposals (RFPs) creation.

hDAO starts completely managing the HAI Treasury, making all decisions and actions with HAI tokens transparent and preventing any hidden activities that may lead to token liquidity and price decrease.

hAI

hAI is a single mobile key to the whole HAI ecosystem, providing access utility products: Trust Army, hDAO, HackenProof, and Extractor.

Utility: as an HAI utility, hAI enables entering the Hacken Membership Program, Voting Power and Trust Army Fuel obtaining, participation in hDAO Committees, HAI Coupons purchasing, Soulbound Tokens management system, and opens unique opportunities for the Membership superior levels.

Soulbound Tokens: Innovative Membership Management

Soulbound Tokens (SBTs) are non-transferable lifetime access approval and achievement medals in the form of NFTs. They are attached to the owner’s wallet (soul) only and reflect the user’s reputation and engagement with Hacken products. SBTs can be used for access control, membership management, and rewarding members for their contributions to the Trust Army and hDAO communities.

HAI Technical Infrastructure

The HAI ecosystem has undergone significant updates in its Tokenomics, which have impacted the technical infrastructure of the ecosystem, particularly its on-chain components.

Based on new Tokenomics and products technical requirements, in 2023, Hacken will update its smart-contracts structure. Because of the major issues the new HAI ecosystem architecture meets, the HAI ecosystem products will be deployed to a new chain — Ethereum L2 (the one that will be announced in Q2 2023). hDAO, Trust Army, ETD, hAI, and Membership will work on Ethereum L2.

HAI Distribution

Based on a new stage of HAI ecosystem development and visions of transparency and trust — Hacken shares detailed distribution of HAI tokens with its community, investors, and other parties.

HAI Roadmap

As a part of core improvements, the Tokenomics Paper contains the updated HAI token Roadmap for 2023 and Q1 2024.

This announcement contains key innovations in terms of the new HAI Tokenomics release. To get acquainted with all Tokenomics novelties, read the HAI Tokenomics Paper by following the link and discover the updated Hacken.AI website.

Last year Hacken released the first cybersecurity stablecoin that bakes time for auditors’ teamwork — ETD (Engineering Team Day). It delivers HAI as a B2B utility, connecting the Hacken business services with the HAI token. B2B clients and partners purchase HAI from the market, convert them into ETD and use it as payment for Hacken.io services and products.

In fact, a Web3 cybersecurity market leader with 1,200+ clients and $9+ million in annual revenue merges its business success with its token.

ETD Utility

ETD prospective holders are VC companies, cryptocurrency accelerators, L1 protocols, and blockchain companies that require numerous smart contract audits to maintain operations securely.

For 1 ETD, they get 1 workday from a Hacken Auditor team of 4 people. Its price is $4,500, representing the expenditures of this team workday. The total amount of ETDs is limited to 1,000 due to the Hacken scheduled workload and person-day available in a year.

Introducing Innovative ETD 2.0 Smart Contract

ETD 2.0 purchase, minting, and usage models became much more mature to transfer all B2B success into HAI value. To reflect community and client feedback, we have designed an ETD 2.0 smart contract that allows clients to buy ETD at a fixed HAI/USDT price.

Innovative ETD solution merges Hacken business growth success with 3 pillars of successful tokenomics:

• The organic market buying process
• Permanent liquidity growth
• Deflationary tokenomics.

The new HAI Tokenomics will provide a stronger connection between Hacken.io and HAI ecosystem growth.

The main ETD 2.0 improvements are:

• The option to buy ETD at a fixed price in USDT
• HAI price impact through automated HAI buying from the market
• HAI liquidity growth, impacted by prepayment proceeds through ETD purchasing in USDT
• Deflationary tokenomics through automated HAI burning

Find the scheme describing ETD with USDT purchasing below.

#1 — Fixed Price for ETD Acquired with USDT

ETD 1.0 allowed a business client to purchase ETD with HAI for further usage as a service payment, creating a straightforward HAI utility. What is new — now he also had the option to buy ETD directly with USDT alongside bringing more value to HAI. HAI price is fixed at the current market price before the ETD acquisition.

#2 — Automated HAI Market Buying

ETD smart contract automatically uses 66% of received USDT to purchase HAI at a Decentralized Exchange. That creates ultimate utility with funds paid for B2B service.

#3 — Automated HAI/USDT Liquidity Adds

Half of the acquired HAI (33% from ETD cost) with the remaining USDT (33% from ETD cost) are automatically added to the Decentralized Exchange HAI/USDT liquidity pool.

#4 — Automated HAI Burning

Half of the acquired HAI (33% of ETD cost) is automatically burned.

#5 — hDAO Role for ETD 2.0 Budgets

ETD uses hDAO Treasury to fill ETD swap back budgets — ETD-HAI Treasury.

Description of automated treasury transfers:

1. Clients send USDT to ETD smart contract
2. The ETD-HAI Treasury is deposited with HAI from the hDAO Treasury for a USDT equivalent amount
3. Clients receive ETD, which is 100% backed by ETD-HAI Treasury

The initial amount in hDAO Treasury available for ETD acquisitions is 10 mln HAI. Further add-ons are subject to hDAO voting.

#6 — The Client Can Swap ETD Back in HAI with a 10% Fee to Be Automatically Burned

If the client decides to swap ETD back into HAI, he can easily do it in 1 month after purchase. In this case, a 10% commission will be applied and automatically burned.

Values for ETD Holders

ETD 2.0 is a risk-free derivative for Hacken clients, partners & crypto funds as it provides a fixed price for auditors’ time regardless of the market changes.

From the holder side, ETD allows to keep HAI or freeze its value in Web3 engineers’ labor time.

Hacken continues inventions in HAI tokenomics by implementing product-based utilities. We are the first company to merge B2B success with token market buying, liquidity growth, and deflationary tokenomics in one risk-free derivative. We believe that ETD 2.0 sets industry standards for tokenomics and will create a path for HAI sustainable development for years ahead.

Be the first to know more insights about the next announcements and releases in Hacken Discord.