Hackless tokenomics: utility, distribution and circulation supply 💎
With tokenomics being one of the drivers of any project’s success, we’ve put much thought and effort into building a sound one for Hackless. In this article we reveal the details of the HKLS token that powers our protocol, its utility, distribution and circulation supply.
The Hackless platform maintains its own utility token — $HKLS — which is used as an internal asset to gain access to the platform’s core features. For quite some time we’ve been researching a good token model for our project, so it’s high time we shared the results and explained what you could do with HKLS, as well as the rewards available for joining our network.
HKLS token utility
When designing the HKLS token utility, we have focussed on various aspects that are necessary for growing our network driving the company’s mission.
Here is what we’ve come up with:
1. Subscription
Users provide the necessary amount of HKLS tokens and stake them on the platform. The amount is locked for any specific period of time — several days, several weeks, several months or a year. The amount (recalculated daily) decreases if the term becomes longer. The longer the subscription period, the less tokens are locked. During the ‘lock period’ tokens are linearly burnt — returned to the treasury in order to be recirculated later through the rewards system.
Nevertheless, users can freely unlock the amount of tokens left without incurring additional fees — only the actually used amount is charged. Also, the platform’s first users will not have a burn rate to stimulate usage.
2. Tiers for access
Subscription services have several tiers to provide flexibility of services and to match the needs of users. The Hackless platform will offer tiers for providing combinations of the Watchdog service core components: alerts, several levels of analytics, stop-transactions, data for analysis accumulation, etc. Users will be able to combine any services they require and not lock extra tokens.
3. Private mining services
The Hackless platform works as a provider of private transactions in order to ensure that the attacker will not be able to detect countermeasures directed against the exploiter. Therefore, these transactions are charged in the platform native protocol with the ability to deposit sufficient amounts of tokens for prolonged usage of the service. The service can be expanded into other EVM compatible chains (Polygon, BSC, Fantom, Avalanche, etc.).
4. Decentralized autonomous organization (DAO)
The HKLS utility token also works as a governance token. So, it gives the user voting power for the DAO, where the main proposals for the platform’s developmental direction will be offered. By holding HKLS tokens and using them for voting, users will add more security to the platform.
5. Decentralised Security Consul Stake
The service applicable for HKLS token holders allows them to stake the token and take part in the governance of a specific smart contract agreed for a particular service. Hackless platform and the guarded protocol incentivize consuls to stake the HKLS token. In the response, consuls should secure the protocol by monitoring and pausing the contract in case of an attack. To ensure the honesty of the consuls, their stake and rewards are locked for several periods, or until a new consul is selected.
6. Insurance deposit
This is a special kind of security insurance deposit for users. A user stakes HKLS tokens, in order to secure funds deposited in a DeFi protocol. A user provides a signed transaction for the secure migration of deposited funds and HKLS insurance deposit. Subsequently, the user gets a custom instance of the Watchdog service, which searches for unusual activity on the target protocol on an individual basis for the user. Once suspicious activity is detected, the Hackless platform migrates user’s funds to their reserve address through the SafeMigrate service. Therefore, the user gets individual Watchdog instance with safe funds migrations for any kind of DeFi service, in exchange for the insurance deposit of HKLS tokens (which are burnt in case of usage).
7. Token utility for individual users
An individual user can access multiple Hackless security services by staking HKLS tokens. This can enhance the safety of the funds which they provide on third-party protocols outside the Hackless ecosystem.
As a user stakes their tokens and provides a signed transaction for the required action (unstake funds, withdraw them back to a user’s wallet, repay loan, make a SafeMigrate request, etc.), the Watchdog service continuously monitors third-party protocols. In case any suspicious activity is detected, Watchdog sends an immediate alert to the Hackless platform and notifies the user. If there is a possibility of a hacker attack, SafeMigrate claims the funds of users and migrates them securely (or executes other tx provided by the user).
Token distribution
The initial HKLS distribution is 20 million tokens. This number includes all of the categories of token recipients in the distribution schedule.
Private round 8%
All private round participants will have a 3-month cliff before the linear 20-month vesting period starts. 10% of tokens are unlocked immediately which allows initial usage of the platform and participation in further staking programs.
IDO/IEO 16%
All IDO/IEO participants will have a 3-month cliff before the linear 20-month vesting period starts. 10% of tokens are unlocked immediately which allows initial usage of the platform and participation in further staking programs.
Core team 16%
Core team is incentivised with tokens for the future development and expansion of the platform. In order to provide fair incentivisation, team tokens are locked for 12 months before the 20-month vesting period starts.
Partners and advisors 8%
Incentivisation program to encourage external advisors and partners to enroll in the platform’s development and growth. To prevent the oversaturation, tokens have a 6-month lock before the 20-month linear market entry.
Further development 15%
Incentivisation for the dev-team and external contributors (in the form of grants for example). To prevent the oversaturation of the market, these tokens have a 12-month cliff before 20-month linear market entry.
Marketing activities 7%
The marketing activities tokens have a 12-month cliff and 20-months linear market entry.
Liquidity pool on DEXes 15%
To provide the sufficient amount of tokens for circulation on decentralised markets, initially 15% of the tokens will be available, but liquidity will be spread among several DEX platforms, so liquidity will be provided as the tokens are added to the platforms. The rest of the tokens have a 1-month cliff before 17-month market entry.
Community incentivisation 15%
Launch of several staking programs, liquidity providers and early participants incentivisation. In order to encourage token holders, we decided to provide incentivisation programs at an early stage. Therefore, 2% of tokens will be available initially, after a 1-month cliff the rest will be linearly released during the next 49 months.
Token circulation supply
The chart below shows the allocation of HKLS tokens and increase in circulating supply as tokens are unlocked.
This is all for now. If you want to dive deeper into the Hackless project here are some helpful materials that we’ve prepared for the community:
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