HACKENOMICS
1. Hacken Intro 02
1.1 Hacken Group 02
1.2 Vision & Mission 02
1.3 Hacken Products 02
2. HAI token 04
2.1 Hacken Token History 04
2.2 HAI Supply Analytics 04
2.3 Hacken Membership 05
2.4 HAI Utility 07
2.5 NFTs. Achievements and Collectibles 08
2.6 Governance 10
2.7 Burn 11
3. Hacken Future 11
3.1 Product Roadmap 11
3.2 Hacken Foundation 13
3.3 Budget and Lock-ups 14
Conclusion 15
01
1. Hacken Intro
1.1 Hacken Group
Hacken, founded in August 2017 by cybersecurity experts, Big Four professionals, and white
hat hackers, is a fully-fledged cybersecurity ecosystem. Since late 2017, we have been
developing a sustainable business ecosystem that:
Builds security infrastructure for the blockchain and crypto industry
Ensures continued high-quality protection from major cyber risks for our B2B clients
Educates individuals on cyber risks and how to be protected in a rapidly developing
digital world
Builds B2C products for individual complex cyber protection
Contributes to the development of an ethical hacker community through education
and client connection
Having worked with more than 300 clients in the last three years, Hacken has not only
become a leader in the blockchain security industry but has also established itself as the
biggest cryptocurrency exchange auditor and a trusted brand in traditional enterprise
cybersecurity.
1.2 Vision & Mission
Hacken's mission is and will always be to protect individuals and companies from cyber
threats. We aim to build a solid foundation of fully-fledged products, scale new and existing
solutions, and ensure the mass adoption of our native utility token, HAI.
During our first 3 years, the mission was to build a sustainable business organization that
generated sufficient resources for reinvestment into building new products, services and
network interrelations.
Over the next 3 years, from 2021-2023, we plan to continue building our ecosystem of
cybersecurity vendors and customers which will be fuelled by our HAI token.
This native utility token will also serve as the exclusive payment option for our upcoming
Hacken Foundation; an online marketplace where pre-approved cybersecurity companies
and freelance specialists can list and sell their services.
The vision for our native HAI token is for it to become the market-leading standard for
cybersecurity tokens.
1.3 Hacken Products
HackenProof
[Link]
Hackenproof is a bug bounty platform that helps businesses protect their digital
assets, as well as the personal data of customers and their online reputation through
crowdsourced security.
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Security Assessment & Incident Response
[Link]
Hacken delivers a comprehensive suite of professional cybersecurity services that
safeguard systems, networks, and software applications from online attacks and
human-based errors for businesses and consumers operating in the digital world.
Blockchain Security Consulting
[Link]
Hacken is an established blockchain and DeFi cybersecurity market leader that has
worked with over 300+ clients since 2018.
WIRA
[Link]
Web Infrastructure Risk Assessment (WIRA) is an automated security scanner that
provides the highest level of detection of over 6,800 vulnerabilities with nearly 0%
false positives.
CryptoExchange Ranks - CER
[Link]
[Link] continuously develops a security risk scoring methodology with the mission
to alert crypto enthusiasts of security risks when dealing with digital asset platforms.
In July 2020, cybersecurity data provided by [Link] platform became a part of
CoinGecko’s TrustScore service.
HackenAI
[Link]
HackenAI is a set of mobile and web-based applications that protects users online so
they can go about their life with peace of mind. HackenAI privacy and security apps
include:
HackenAI - Our flagship cybersecurity educational application product.
HackenAI is also a native app of the Hacken Ecosystem that helps users utilise
the full power of HAI token. Within HackenAI, our community members can buy
and store HAI tokens as well as purchase memberships to access all Hacken
B2C products for free.
hVPN - Hacken’s custom VPN. This product gives users fast, private, and
secure access to all of their favorite websites and apps. Hacken’s expertise
and technical knowledge ensures the highest level of security and privacy.
hPass (to be released in 2021) - Passwordless authentication, zero-knowledge
password vault, 2-Factor Authentication for personal use.
hGuard (to be released in 2021) - Hacken Guard. Privacy application that
safeguards user’s digital and financial identity from the constant risk of fraud.
03
2. HAI token
2.1 Hacken Token History
Hacken’s HAI Token is a native utility token that powers virtually all of the activities within
the Hacken Ecosystem. The Hacken Token can be used for discounted HackenAI
subscription fees, acquisition of Hacken Club membership, and even purchasing corporate
and crypto exchanges cybersecurity services within the Hacken Ecosystem.
The original HKN ERC-20 token has now been converted into HAI and is no longer
tradable on cryptocurrency exchanges. To swap ERC20 HKN into HAI, please follow the
instructions here.
2.2 HAI Supply Analytics
Total supply analysis * as per 30/12/2020
Owner Balance Link
[Link]
Hacken Foundation cold wallets 700,000,000
[Link]
Hacken Foundation hot wallet 13,197,182 [Link]
Staking 42,546,925 [Link]
Swap lock 40,004,559 [Link]
Investor 1 24,000,000 [Link]
Burned 3,069,475
Circulation supply 177,181,859
[Link]
Including private sale investors 63,889,980
[Link]
Max supply 1,000,000,000
04
HAI distribution per White paper analysis
Our new 3-level membership and benefits structure will be implemented according to the
table below, starting from 28th February 2021.
Distribution % HAI Circulation Staked & Hacken Investor 1 Hacken Foundation Hacken
per White paper supply Locked Foundation 2 hot wallet Foundation cold
Public issuance 5% 50,000,000 7,453,075 42,546,925
HKN holders 8% 80,000,000 33,728,784 40,004,559 6,266,657
Private sale 10% 100,000,000 100,000,000
Marketing 20% 200,000,000 15,000,000 5,000,000 180,000,000
Techincal 20% 200,000,000 10,000,000 5,000,000 185,000,000
Partners & Advisors 10% 100,000,000 1,000,000 75,000,000 24,000,000
Team 10% 100,000,000 10,000,000 90,000,000
Equity Investors 10% 100,000,000 75,000,000 25,000,000
Reserve 7% 70,000,000 70,000,000
Burned 500,002 -500,002
HAI ERC20 2,569,473 -2,569,473
Total 100% 1,000,000,000 180,251,334 82,551,484 150,000,000 24,000,000 13,197,182 550,000,000
2.3 Hacken Membership
Hacken Club membership is the key element of our ecosystem’s success. One of our team’s
core tasks is to find new ways to add extra value for new and existing Hacken Club members.
Current Hacken Membership structure is described in the link below
[Link]
VTHO distribution to 4th level members for 2020 YE results is to be made before 15th
January 2021.
05
New membership model from 28/02/2021
not a member Member Associate Partner
USD equivalent 0 100 USD 1,000 USD >= 10,000 USD
Can current membership be upgraded? n/a n/a yes for 2nd level, if all 1-3 yes for 3rd level, if all 1-4 level
level hats collected hats collected
Length 0 1 year 6m/1 year 6m/1 year
Community contribution fee for
n/a 30% 20% 10%
early membership cancellation
Hacken B2B clients referral bonus 2.50% 5% 7.50% 10%
Yield n/a n/a 5%/7% in HAI 7%/9% in HAI
HackenAI subscription 9.99 USD free when family pack 5 licenses when corporate pack for 100 licenses
active member active member when active member
Important updates of new membership structure:
1. Current 2nd and 3rd level members will be able to upgrade their membership to
Associate and Partner level by:
a. Adding required HAI for next level
b. Collecting required NFT hats, please see paragraph 2.5 for details
2. Hacken Members will be able to terminate their membership by paying a community
contribution fee for early membership cancellation. Community contribution fees
vary depending on the membership level. All fees are immediately burned to ensure
the permanent deflation of the maximum supply.
3. Yield on Associate and Partners HAI balance has been introduced to maximize
the benefits for HAI holders. Yield is paid on a quarterly basis. Yield rates are fixed
for 2021 and may be changed from 2022 depending on Hacken Associates and
Partners voting.
4. Two membership lengths have been introduced. The key difference is the yield
given on staked amounts.
5. The B2C HackenAI application premium subscription will now be free for all
Hacken Members.
06
2.4 HAI Utility
Hacken vision for HAI utility:
“The value of a token is determined by the number of goods
that can be purchased with it.”
Since 2017, Hacken’s core team has been facing the challenge of building a sustainable
organization that does not rely on external investors.
A token that does not have a sufficient revenue back-up will not survive in the long run. We
at Hacken are extremely thankful for the time and resources given by our supportive Hacken
community to help build out the fundamentals of our products. Now, it’s time for us to repay
the favour.
Hacken utility will be based on 5 key elements:
1. Hacken B2B products utility
As of 2020, even the crypto world customers are not ready to execute payments
for services and products with native tokens. The complexity of executing trades
on cryptocurrency exchanges creates friction that has a direct impact on client
numbers. However, clients are ready to do so if the B2B payment in native token
provides additional discounts for useful services. As of the end of 2020, Hacken now has
sufficient reserves to enable the following utility benefits for clients who pay in HAI
up to 20% discount for cybersecurity services paid in HAI
burn all Hackenproof service fees made in HAI
2. HackenAI B2C utility
The core idea why we built HackenAI
“Everyone has the right to be protected on the internet for free.“
The Hacken core team works hard to constantly improve the leading all-in-one
individual cybersecurity application. All premium features in the app will remain free
for Hacken members indefinitely.
The HackenAI goal is to disturb the individual cybersecurity application market with
an innovative membership model. The average monthly cost for a complete suite of
cybersecurity services that includes a password manager, a VPN, anti-virus and
anti-phishing protection, and dark web monitoring is usually around 40 USD. Hacken
club members will be able to receive all of these first-rate features for free provided
they stake a minimum of 100 USD in HAI tokens.
3. Hacken Foundation
The cybersecurity market is currently monopolized by big corporations that make it
increasingly difficult for small, talented cybersecurity researchers and teams to compete
in. That’s why we’ve decided to launch the Hacken Foundation; a dedicated platform
where pre-approved cybersecurity professionals can offer their B2B and B2C services.
Think of it as the Amazon for cybersecurity. 07
One of the main features of this new platform is that all transactions for products
and services will be exclusively made in HAI tokens - the native utility token of our
Hacken ecosystem. Discounted services and promotional free products and trials
will also be made available for existing Hacken Members.
4. Sustainable growth protection
50% of Hacken Group’s fiat net profits from cybersecurity consulting are held in a
Sustainable Growth Reserve (SGR). Just like Governments Foreign Exchange
Reserves, Hacken Core team will use the reserves to support HAI with automatic
buy orders during bearish price fluctuations. The levels of price protection are set
once a year. HAI bought through SGP are immediately burned.
5. Governance
Hacken Partners would be involved in following the decision-making process:
HAI supply lock-ups
Annual yields for Hacken Associates and Partners
Development budgets set up
Community fund distribution
Hacken Foundation members validation
A decentralized automated market maker platform will also be built for the purpose
of convenient HAI acquisition through most commonly used cryptocurrencies.
2.5 NFTs. Achievements and Collectibles
An ‘Achievement’ is a one-time reward for completing a task on the HackenAI application.
Once the achievement has been unlocked, a random NFT collectible reward is generated
and sent to the HackenAI user.
Each NFT collectible is a VIP-181 token that is generated by our backend infrastructure
and sent to the user’s VeChain network address. Users can send and receive these tokens
(collectibles) by using the HackenAI application.
NFTs are stored on the VeChainThor blockchain.
Depending on rareness, there
are different NFTs levels:
Level 1 - 8 different collectibles
Level 2 - 4 different collectibles
Level 3 - 2 different collectibles
Level 4 - 1 collectible
08
The chances of receiving a rarer NFT collectible are higher depending on the user’s
Hacken Membership and activity index in the app. Activity index refers to how many
achievements have already been unlocked.
In addition to this, there are certain limited exclusive NFTs issued for special occasions.
Our first exclusive NFT was a White Hat for longterm HKN token holders. The special
feature of the White Hat NFT is that it can be used as a joker NFT for users collections.
Users can collect or purchase multiple White Hat joker NFTs in order to complete Hacken
membership upgrade requirements.
The initial use case of Hacken NFT collectibles is to allow users to upgrade their existing
staking level to one that offers better benefits.
From 28th February 2021, 2nd and 3rd level members will be able to upgrade their membership
to Associate and Partner levels accordingly.
2nd level member 3rd level member
Initial HAI staked, equivalent in USD 500 USD 2,500 USD
New required HAI staking amount 1,000 USD 10,000 USD
Option 1. Upgrade through adding HAI for 500 USD 7,500 USD
the next membership level
Option 2. Upgrade by the exchange of NFT all 14 1-3 level NFT hats all 15 1-4 level NFT hats
collections
Option 3. No upgrade. Membership price
400 USD 1,500 USD
differences is unlocked and returned to
Hacken member
Hacken core team will strive to create new achievements, collectibles, and NFT activities
to engage Hacken members.
09
2.6 Governance
Governance is critical to the longevity of any decentralized project and a strong community
is the key foundation of a solid governance program. Our active community is one of
Hacken’s biggest assets and that is why we are keen to start empowering each member
using a progressive decentralized governance approach. Over time, the Hacken team will
pass over control of a number of business directions to users to become even stronger and
to encourage existing holders and members of the community to become more active.
In the early stages of project development, clear and well-coordinated work of a team is
required. The product needs opinionated leadership to test hypotheses and update
assumptions quickly.
Currently, we have reached stable product traction — fully-functioning processes, a
growing client base, growing community, strong market position, etc., and we believe that
we are ready to start the “control transfer process” from the project founding team to the
community.
We decided to start this process with a Community Fund. This fund will be replenished on a
semi-annual basis based on the Hacken Foundation’s performance over the previous half
year, and the Hacken stakeholders will decide on how to manage these funds in a way that
will contribute to Hacken ecosystem growth and prosperity.
The exact governance model for the Community Fund will be presented to the community
for consideration and discussion. After the discussion and clarification stages are completed,
a vote will be taken to select the primary governance model.
All subsequent changes, adjustments, and management of the Community Fund be
managed by the project community, according to the primary model, which can also be
changed by voting in the future.
A decentralized governance model is a clear sign of the maturity and sustainability of the
project and one of the most efficient and viable forms of community participation. This
ensures the longevity of the project and its continuous improvement.
10
2.7 Burn
HAI is the key point of Hacken ecosystem growth. Just like traditional startups focus
their efforts on equity capitalization growth, a key success indicator for crypto projects
is growing the native token market cap.
In order to achieve our roadmap goals, a 1 billion HAI max supply has been set. The max
supply can only decrease over time due to the rising number of burned and lost HAIs.
The difference between the max supply and the circulating supply is the max HAI budget
that can be used for ecosystem development. The usage of these funds is regulated by the
core team and Hacken Partners on a yearly basis.
Deflation philosophy is a Hackenomics fundamental element that will inescapably rebalance
HAI demand oversupply.
Hackenomics' scarcity element is embedded in strict lock-ups and burning mechanisms.
HAI Max supply continuously decreases due to the following burning events:
1. All Hackenproof service revenue from blockchain clients is immediately burned.
2. All HAI bought through the Sustainable Growth Reserve are immediately burned.
3. Hacken Members’ community contributions through membership termination are
accumulated and burned every month.
HAI burn address is here:
[Link]
The Hacken core team will endeavour to create new burning events to increase HAI defla-
tion.
3. Hacken Future
3.1 Product Roadmap
Since 2017, Hacken has been focusing on building cybersecurity products and a sustainable
business.
The new focus for 2021 and onwards will be:
1. Scale existing B2B products and services
2. HackenAI individual cybersecurity suite development
3. Hacken Foundation
11
Roadmap commitments for 2021
HACKEN PRODUCT/SERVICE LINE Details Timeframe
CER Top 1,000 tokens security rankings Q1 2021
Hackenproof SaaS bug bounty solution Q1 2021
[Link] DeFi security methodology Q1 2021
HackenAI hPass - Desktop authenticator Q1 2021
Hacken Foundation Introduction Q1 2021
HackenAI hGuard Q2 2021
Hacken Foundation First 5 projects join Foundation Q2 2021
HackenAI Educational videos Q3 2021
Hacken Foundation Automated Market Maker Q3 2021
CER Fintech apps security rankings Q4 2021
HackenAI Open source Q4 2021
[Link] Leading international accreditation Q4 2021
Hacken Foundation Hacken marketplace launch Q4 2021
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3.2 Hacken Foundation
Inspired by Linux Foundation, we set an ambitious goal to unite young cybersecurity com-
panies, white hat hackers, and individuals security experts under one umbrella.
Hacken Foundation is a decentralized cybersecurity foundation built on cooperation,
knowledge sharing, and trust-based principles.
Requirements for Hacken Foundation members:
1. Cybersecurity products MVP
2. Proven cybersecurity expertise
3. Crystal clear reputation
4. Accept HAI as payment for products and services
Every new member is to be approved by the Hacken core team and Hacken Partners
voting.
Hacken Foundation’s plan is to build a decentralized cybersecurity marketplace that will
accumulate information about every cybersecurity niche, product and service. We are
going to consolidate independent rankings and expert opinions all in one place.
Hacken Group CEO, Dyma Budorin:
“Just like Jack Ma started Alibaba from creating a catalogue of
Chinese manufacturers, we want to create a global cybersecurity
map with all the players. This is what is missing now.”
Hacken Foundation members would have a privileged marketing position depending on
their HAI usage. Discounts for payments in HAI and Hacken membership would have a
direct impact on their visibility at the marketplace.
Top cybersecurity projects and members of the Hacken Foundation would be eligible to
receive funding from a Hacken Community Fund, based on voting decisions.
13
3.3 Budget and Lock-ups
Hacken Foundation hot wallet balance will be used for HKN swaps and 2021 Yield
payouts.
2021 Hacken Ecosystem development and marketing needs, as well as HAI unlocks, are
presented in the table below:
Budget for 2021 Type USD HAI (@ 1USD cent)
HackenAI development Technical 350,000 35,000,000**
HackenAI user acquisition campaigns Marketing 300,000 30,000,000**
Hacken Foundation Technical 200,000 20,000,000**
Automated Market Maker Technical 100,000 10,000,000**
Ecosystem development Marketing n/a 20,000,000
Team unlock Team n/a 10,000,000
Equity shareholders unlock Equity n/a 5,000,000
Reserve for yield payments & Reserve n/a 70,000,000
topexchange listing*
200,000,000
* will be used only if required
** max limit. To be transferred to next period if not used
14
Hacken Foundation wallet and remaining budgets analysis
Hacken 2021 1 year 3 years 10 years
White Paper allocation Foundation budget locked lock lock
wallet
Marketing 180,000,000 50,000,000 40,000,000 75,000,000 15,000,000
Technical 185,000,000 65,000,000 40,000,000 65,000,000 15,000,000
Team 90,000,000 10,000,000 15,000,000 55,000,000 10,000,000
Equity Investors 25,000,000 5,000,000 5,000,000 5,000,000 10,000,000
Reserve 70,000,000 70,000,000 - - -
550,000,000 200,000,000 100,000,000 200,000,000 50,000,000
350 mln HAI will be sent for a 1/3/10 years lock-up before 15th January 2021. The budget
for 2022 will be presented in December 2021 with subsequent Hacken Partners voting for
its approval.
Conclusion
Hackenomics is a fundamental document that describes Hacken Group’s evolution and
sets out rules for HAI circulation. HAI is the digital blood of a rapidly developing cyberse-
curity ecosystem and is the sole point of Hacken capitalization.
15
