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Hats.finance tokenomics

Introducing $HAT
Token Disclaimers
  1. 1.
    Delay in TGE and Liquidity Mining:
    1. 1.
      The initial token generation event (TGE) and liquidity mining for Hats Tokens have been postponed from their originally planned schedule.
    2. 2.
      Announcements regarding the revised dates will be provided in due course.
  2. 2.
    Utility Token Disclaimer:
    1. 1.
      Hats Tokens are utility tokens that hold no association or connection with securities.
    2. 2.
      They are specifically designed for utilization within the Hats Governance framework and hold no ownership, equity, or financial rights in the form of securities.
Please note that the information provided herein is for informational purposes only and does not constitute an offer, solicitation, or recommendation to purchase Hats Tokens or engage in any investment activities. The acquisition, possession, and utilization of Hats Tokens carry inherent risks, and potential token holders are advised to conduct their own research, seek professional advice, and understand the associated risks before engaging in any transactions or activities involving Hats Tokens.
Hats Tokens may be subject to legal and regulatory requirements in different jurisdictions, and it is the responsibility of individuals or entities to comply with applicable laws and regulations governing their acquisition, possession, transfer, and use.
The project team, developers, and affiliates associated with Hats Tokens disclaim any warranties or representations, express or implied, regarding the functionality, security, or performance of Hats Tokens or the Hats Governance framework. The team shall not be held liable for any losses, damages, or liabilities arising from the use, possession, or reliance on Hats Tokens or any related activities.
By acquiring, possessing, or utilizing Hats Tokens, you acknowledge and agree to release the project team, developers, and affiliates from any claims, liabilities, or disputes arising from the acquisition, possession, or use of Hats Tokens, to the fullest extent permitted by applicable laws.
This disclaimer is subject to change and may be updated without prior notice. Individuals or entities engaging with Hats Tokens are advised to regularly review this disclaimer for any amendments or updates.

TL;DR

  • $HAT is a governance token
  • 50% of the $HAT genesis supply is allocated to Hats community members.
  • $HAT tokens will be rewarded to users who join any Hats protocol bounty vaults.
Token allocation
The total supply is 100 million HATs Tokens. 50% of the token supply will be allocated to the community and the liquidity mining. The total token allocation breakdown will be as follows:
Investment round tokens - 18% of the total token supply. Vesting period starting from the actual TGE and continuing through to December 15th 2024 or 12 months after the TGE - whichever date is later. { 18,000,000 HAT’s tokens}
Partnership tokens - comprise 7% of the total token supply. Vesting period starting from the actual TGE and continuing through to December 15th 2024 or 12 months after the TGE - whichever date is later. {7,000,000 HATs Tokens}
Core team tokens - comprise 25% of the total token supply. Vesting period starting from the actual TGE and continu. {25,000,000 HATs Tokens}
Community treasury tokens - comprise 15% of the total token supply. {15,000,000 HATs Tokens}
Liquidity mining tokens - comprise 35% of the total token supply. {35,000,000 HATs tokens}
Liquidity mining
The total HATs Tokens for the 1st liquidity mining program will be 25,000,000, comprising 25% of the total token supply. The initial PPM(Protocol Protection Mining) program is not subject to vesting.
At its discretion, Hats governance can decide to replace the current liquidity mining program with another one to best align with the implementation of new protocol features.
In the chart below, we present the current projected emission rate of HATs Tokens to depositors in the vaults. There will be a higher emission rate for early depositors as part of the 1st liquidity mining program. NB: This chart was generated using a total supply of 10,000,000 tokens rather than the updated total supply of 100,000,000.
HATs Token incentives:
When a depositor provides an asset to one of the incentivized bounty vaults they will be rewarded with HATs Tokens in proportion to their share in the vault, the amount of time their tokens are in the pool, and the allocation points of the particular vault. Details regarding the terms associated with such deposits will be provided upon the announcement of of Hats Finance’s TGE.
HATs Token uses
Governance:
HATs Token is used to establish voting weight within the governance. Please see Hats governance page to understand how proposals are made, voted on, and passed.
Please note, Hats governance might choose to require users tokens to be locked or staked in order to participate in governance decisions).
Farming:
The goal of the farming program is to Incentivize token deposits to the bounty vault, increasing the size of the vault while receiving HATs Token rewards as a PPM (protocol protection mining) program.
Another way to farm is to provide liquidity of HATs Tokens on Uniswap v3 ETH<> HAT pool and get liquidity mining HATs rewards for locking your liquidity NFT.
Hats security vault:
The Hats Finance vaults, which incentivizes disclosure for the Hats protocol, will also further incentivize HATs Tokens locking . Similarly to Sushi and xSushi, successful disclosures made in any one of Hats vaults will distribute a certain % of the tokens to HATs Token lockers. (Pending governance decision).

$HAT token incentives:

When a depositor provides an asset to one of the incentivized bounty vaults they will be rewarded with $HAT’s tokens in proportion to her share in the vault, the amount of time her tokens are in the pool and the allocation points of the particular vault.

$HAT token uses

Governance:

  • HATs token is the voting weight in the governance(Hats governance might choose to require users tokens to be locked or staked in order to participate in governance decisions).

Farming:

  • The goal of the farming program is to Incentivize token deposits to the bounty vault, increasing the size of the vault while receiving $HAT’s rewards as a PPM (protocol protection mining) program.
  • Provide liquidity of HAT token on Uniswap v3 ETH<> HAT pool and get liquidity mining HAT’s rewards for locking your liquidity NFT.
  • We are also considering an additional incentive to the first 10-20 projects who will onboard the Hats protocol.

Hats security vault:

  • The Hats token vault, which incentivizes disclosure for the Hats protocol, will also further incentivize Hats token locking . Similarly to Sushi and xSushi, successful disclosures made in any one of Hats vaults will distribute a certain % of the tokens to Hat token lockers. (Pending governance decision)

HATs token uses in the protocol

Each exploit that will be fixed and rewarded through the protocol will trigger a split function that will incentivize hackers, committees, and protocol participants to further use the protocol. The split function parameters can be set by the governance and their default is:
  • 60%: 30 days vested Vault tokens for (Hacker reward)
    • In order not to put high sell pressure on the rewarded token
  • 20% Vault tokens (Hacker reward)
    • Fungible tokens for immediate hacker use
  • 5% Committee
    • To incentivize committee resolution and triage of vulnerabilities reports.
  • 5% Converted through Uni v3 to Hats and vested for 90 days (Hacker reward)
    • To make the hacker invested in the protocol he had just added value to and to incentivise him to further disclose vulnerabilities through Hats protocol
  • 10% Converted through Uni v3 to Hats and sent to Governance
    • To incentivize the long-term sustainability of the protocol and its community needs.