Our Economic and Revenue Model
HAT ecosystem sustains itself through a self regulating and self reinforcing economic model, designed by the HAT Research Project.
HAT Data Exchange Ltd: Sources of revenues
HATDeX is tasked to manage and grow the HAT ecosystem. As such, it aligns its economic incentives with that of HAT users so that the more they benefit, the more HaTDeX would benefit. Since individuals benefit in ways that are also non financial (eg sharing things), HaTDeX must also ensure that free sharing of data is always possible. However, someone has to pay for all the services and infrastructure. So HATDeX have to devise revenue models so that some money can come into the system to pay for everything else and everyone benefits from it. HATDeX derive revenues in 5 ways:
MarketSquare™ Data and Content exchange
Whether it’s to trade their data for vouchers, or just trade it for cash or services; whether it’s to sell their original art, photography or music, HATDeX built Marketsquare™ to enable peer to peer sharing, exchanges and purchase. And when HAT users get the benefit, HATDeX takes a very small cut. In a way, HATDeX is the data and content agent for HAT users. So the more benefit you get from your data and content, the more money HATDeX will make. But because the ecosystem could be very big, HATDeX will only need to make pennies for each transaction, and everyone benefits from a large community network. The amount HATDeX make is also shared back with HAT users through the HAT digital currency – crowns. This alignment of a scalable revenue stream between HATDeX and the benefits to HAT users is important to the HAT foundation.
HAT users can share their data without going through MarketSquare™, for example through other HAT applications certified by the HAT community foundation. HATDeX won’t derive any revenues from those exchanges but that is good for all because there will be more reasons for people to get HATs – it will make the HAT ecosystem bigger and that will be better economically for everyone.
HATDeX also derive revenues from hosting and provisioning HATs. However, almost all these revenues go towards paying the cloud service provider, currently AWS, and towards technical support, to make sure HATs are backed up and functioning properly. This is actually money HATDeX doesn’t want to make, because by charging, the ecosystem growth is slowed and people become more reluctant to get their own HAT since we are all so used to freemium services. So HATDeX creates ways to make HATs free, and inviting other organisations to provide HATs as well. HATDeX work with companies who want to consistently have some personal data, and ask them to pay for for HATs in exchange for some data, with your consent, so you can get a free HAT for all the other things you want to do with it. And if you are willing to share that bit of data for a free HAT, it’s a win win.
MarketSquare™ other Metadata services
HAT users’ data and content are always private, but the type of data being exchanged is reported back to HATDeX (without any identity information). As the ecosystem grows, such metadata becomes more important to ensure that the ecosystem is working properly. But it also allows HATDeX to create services for users, some of which may be chargeable. This means HATDeX can give services back to the community to improve the use of their data.
Rumpel™ add-on services
HAT users use Rumpel™ as their personal hyperdata browser and as more data comes in, there will be more demand for functionalities and services. Some of these add-ons may be chargeable, but some could be free. Rumpel™ is an open source programme so other companies and developers in the HAT community may also offer add on services through Rumpel™ or even create their very own hyperdata browser.
Consultancy and HAT provisioning for businesses
For companies that wish to outsource personal data containment, access, usage and sharing (e.g. IoT companies, government etc.) to the HAT, we provide services for organisations, and the products are viewable here. We also encourage consultants to work with us on projects that would incorporate the HAT into their offerings.
As the commercial arm of the HAT foundation, we aim to be as transparent as possible in the way we derive revenues, and more importantly, we want to derive revenues that are sustainable, aligned with the ethos of the HAT community, and yet be economically successful and giving benefits back to HAT users as well as other stakeholders.
View the HATDeX blog post on their Economic and Revenue Model here
HAT Community Foundation: Sources of revenue
THE HAT Community Foundation certifies new HAT application providers and HAT platform providers globally. This revenue covers costs of certifying and is considered a service to the community.
Donations to HCF are kindly and gratefully received online and during project campaigns where HCF actively solicit for donations towards a particular community activity.
Dividend from HATDeX
HATDeX contributes 30% of its dividend payment to HAT Community Foundation