Hacken CEO: Hacken Merge — My Favourite HAI Utility
9 of 10 HAI utility improvements have been already revealed in the new HAI tokenomics. Today Dyma Budorin, Hacken Co-Founder & CEO, announces the last and the most remarkable innovation, which is the main turning point of the HAI community’s existence after the hDAO full release:
The Hacken story began in 2017. A group of dreamers from Ukraine decided to go all-in for the blockchain adventure. We raised funds via ICO to build cybersecurity products that we are passionate about. Today, after 6 years, we have thousands of protected clients, hundreds of business partners, tens of products, a huge community, a talented and motivated team, and a well-recognized brand in the Web3 industry with a 15% market share and growth. That was hard and fun.
Many thanks to everyone involved.
Our ambitions are much higher than where we are right now. But before our next scaling steps are released, we need to fix the critical issue of aligning the interests of the two most notable groups of Hacken stakeholders: the HAI community and Hacken equity shareholders.
Today in 2023 industry still has not a clear definition of what a token is and how it should be connected to the brand & business behind it. Also, that is not a secret that today we still don’t have a clear Web3 market formula to calculate the token market cap. There is no understanding and clear guidance on what token is a security and which is not. Are buyback and burn legit? What governance decisions that token holders make can’t pass the Howey test? And I am not sure we will have these answers from those people who are not involved in Web3 business 100% in the nearest time.
So I decided to design our vision of how equity and token holders should merge. And I, not the Hacken company, will execute it as designed.
On March 1, 2023, we released the Hacken HAI Tokenomics update. We decided on a transparent transfer of HAI treasury to hDAO, which will be in charge of its usage, meaning the HAI token becomes fully decentralised. Before this, we, as the core team at Hacken, were responsible for how we use HAI reserves for Hacken’s growth and development. There were times when we had to sell HAI tokens to re-invest in team growth and R&D. There were times when we were actively buying HAI tokens back from the market and burning them as marketing activities. From March 1, we will no longer be able to do it in a centralised manner. After HAI treasury migration, my personal status from a person responsible for HAI treasury and fair distribution will transform into less than a 10 mln HAI holder.
I am the CEO of Hacken and the proud owner of a majority equity stake at Hacken OU. Hacken OU (registration number 14351915) is an Estonian legal entity that owns rights to all our main products and intangible assets: Hacken.io, HackenProof, CER.live, Extractors, Hacken.ai, and others. Our strategy is to build in-house products and encourage the product owners and execs team. And I decided to do what is good for everyone with my Hacken OU equity stake.
HAI + Hacken OU Merge formula is designed to have no risks for both Hacken OU & HAI holders. That is a 100% HAI supporter personal initiative.
Follow the steps:
1. The value of 10% of the Hacken OU equity I currently hold will be tokenized into security tokens under EU regulation. We are looking into using a solution like Swarm for that.
2. 10% of equity will be represented in 50 slots. Each slot equals 0.2% of the equity stake at Hacken OU and will be set as 2 mln HAI. That means the total amount of the security tokens will be equal to 100 mln HAI.
3. Everyone who passes KYC and is eligible for investment into security tokens will be able to acquire any parts of the Hacken OU equity slots.
4. 90 mln HAI that proceeds from the 10% equity sale will be burned. 10 mln HAI will be used to participate in hDAO on my behalf.
5. Slot purchasers will be able to cancel their contributions with a 40% burning penalty at any time before legal structuring is complete.
6. Slot purchasers will receive level 4 Membership status.
The whole legal structuring will take maximally 18 months to execute. I am personally responsible for the execution and all legal work preparation. After months of research, I selected this option to align Hacken shareholders & HAI holders’ interests as the most legit and feasible.
Conclusion
When launching a token, we took a big responsibility to do our best for its utility. We haven’t profited by making millions from token speculations. But we did build a successful and profitable business that feeds our families. With Hacken Merge, we unite every HAI holder with every other stakeholder around the same goal — to make Hacken a unanimous Web3 security market leader. A 10% bridge between HAI and equity shareholders is the first and most significant step towards transforming Hacken into a voluntarily public company. And that is not the last. I and perhaps other shareholders will have all the rights to make further equity sales via HAI. And vice versa you, as an HAI holder, can use it for any other purchases and acquisitions. The more people believe in the currency’s utility and value, the stronger it is. Stay tuned.
Dyma Budorin,
Co-Founder and CEO at Hacken Group
