The future of cybersecurity is incentivized security.

An introduction to PPM (Protocol Protection Mining), and the Hatonomics.

Key Takeaways:

• TGE and the liquidity mining were postponed. Updates will be announced soon.
• Protocol Protection Mining (PPM) — Yield farming to incentivize community protection of protocols while decentralizing and giving ownership of the Hats protocol to the community.
• MetaVault — The Hats token vault. Incentivizes white hat disclosures for the Hats protocol, creates an incentive alignment method for Hats token holders with GovernHats voting rights, and upside in the success of the protocol, similarly to Sushi and xSushi.
• Hatonomics is the token distribution, incentives, and emission rates for the Hats tokens. 50% of the $HATs tokens are dedicated to the community via incentives, governance decisions, and PPM.

Hats.Finance is building a decentralized cybersecurity incentive protocol. Our goal is to create the base layer standard for which any project, big or small, can place a bounty with its token to protect its smart contracts. The advantage of a security bug bounty program is that it doesn’t cost anything unless there is a disclosure that would have been a lot more expensive if the program did not exist. A win-win for everyone involved.

The unique scalability Hats offers is that as the project grows in success and value so will the bounties offered by it. Hats is permissionless and open, encouraging project communities to participate in its protection and in return receive Hats tokens to create a community governed protocol.

A decentralized (😎) ecosystem like Hats will attract those who can offer their services as white hat hackers, auditors, security experts, and even black hat hackers, especially if you recognize and reward them for their contributions with rare NFTs.

Protocol Protection Mining (PPM) — How does it work?

For the past few months, we have been designing and implementing incentives for long-term participation and alignment of interest for all participants. This is not an easy feat, and we’ve been discussing with several live protocols for their thoughts on this, this is the first stage, and we welcome feedback from the community.

Protocol Protection mining, a play on Liquidity mining, is the act of providing token liquidity to Hat protocol vaults in order to protect protocols. Since the primary goal of a Hats is to have large, incentivized vaults, Hats seek to reward users willing to bring capital to the platform to incentivize hacker responsible disclosures.

• The goal of PPM is to Incentivize token deposit to the security vaults, increasing the size of the vault and in return receiving reward in the form of $HATs.
• Vault deposits are done immediately, withdrawal has a 7-day time lock due to the disclosure process taking 7 days.
• Each security vault will get reward allocation points, which will indicate the pro rata allocation of the emission rate of Hats. Allocation points are granted and adjusted by Hats governance.

Hats Meta vault:

• The Hats token vault, which incentivizes disclosure for the hats protocol, will also further incentivize locking of Hats tokens. In a similar way to Sushi and xSushi
• Successful disclosures made in any one of Hats vaults will distribute a 5% of the reward tokens to lockers in the Hat token vault pro rata to their holding (Pending governance decision) This effectively aligns Hats stakers with the success of the protocol.

Additional incentives:

• Pool2 — Providing liquidity of HAT token on Uniswap v3 ETH<> HAT pool will also be rewarded with Hat governance tokens.
• The first 15 onboarded projects to the Hats protocol will receive an increase in their PPM allocation points to 115 from the default of 100.

Emission rate

The total HAT Tokens for the 1st liquidity mining program will be 2,500,000.00, comprising 25% of the total token supply. These HAT tokens are not subject to vesting or lock up.

In the chart below you can find the PPM emission rate of HAT tokens to depositors in the vaults. Higher emission rate for early depositors as part of the 1st liquidity mining program.

*Hats governance can decide to replace the current liquidity mining program with another one as V2 and new features will be implemented.

Token allocation

The total supply is 10 million $HATs tokens. 50% of the tokens will be allocated to the community via the protocol protection mining, community treasury, and other incentives like KPI options and future alignment campaigns.

• Investment round tokens — comprise 18% of the total token supply. An 18–21-months vesting period starting on the 24th of November 2021. { 1,800,000 HAT’s tokens}
• Partnership tokens — comprise 7% of the total token supply. {700,000 HAT’s tokens}
• Core team tokens — comprise 25% of the total token supply. An 21-months vesting period starting on the 24th of November 2021. {2,500,000 HAT’s tokens}
• Community treasury tokens — comprise 15% of the total token supply. {1,500,00 Hat’s tokens|
• Liquidity mining tokens — comprise 35% of the total token supply. {3,500,000 HAT’s tokens}

The total supply is 10 million $HATs tokens with a 50% of these will be allocated to the community and the liquidity mining.

Interested in joining Hats?

Hats will succeed in achieving its goals with the help of the community that will be built around it. We are always looking for devs and security experts that are interested in joining us. If you know Solidity or React and enthusiastic about Web3, and want to contribute to the security of the Ethereum ecosystem, please drop us a line and we’d be more than happy to help onboard you.

As always, follow us on Twitter or join our Discord server and let us know what you want to help with.

• 🎮 Discord, please join and introduce yourself.
• 🐦 Twitter, follow for updates and news.
• ✉️ Telegram, Follow for updates and discussion