Profit Distribution

Hattori is built on financial transparency, fairness, and openness to the community. The community is the key asset of any project. Without active and engaged users, it’s impossible to create and share value in a sustainable way. Hattori is no exception, so the project was designed from the start to ensure that as many active participants as possible can receive direct economic benefits from the ecosystem.

The goal isn’t to keep profit inside a small group. Instead, Hattori aims to share profit with the people who create real value by playing, contributing, promoting, and supporting the project.

Profit Distribution System

Below is the base model that explains how Hattori’s profit is distributed among community participants. Some numbers and percentages may change over time depending on the project stage and market conditions. However, the main principle stays the same: profit is distributed in favor of the community and the ecosystem.

Each element of the model is explained in detail below, along with its role in the overall profit distribution system.

Web2 & Web3 Revenue

Hattori revenue comes from two main segments: Web2 and Web3.

Web2 sources:

• In-game advertising

• In-game purchases

Web3 sources:

• Token transaction fees

• Selected purchases outside the game environment

Distribution Limits

The full revenue amount can’t be distributed to the community. The project has mandatory operating expenses, including:

• Product development and maintenance, including salaries

• Infrastructure costs

• Legal and administrative expenses

• Tax obligations

Only after covering these base costs, profit is formed. This profit then enters the distribution mechanism inside the ecosystem.

Taxes & Project Costs

The project generates both Web2 and Web3 cash flows. These revenues are processed differently.

Web2 Revenue

Web2 income is subject to tax regulation in the jurisdiction where the company is registered. The financial flow looks like this:

1. Taxes are paid according to applicable laws

2. Post-tax revenue is formed

3. Operating expenses are covered, including:

   • Server infrastructure

   • Technical support and maintenance

   • Software subscriptions and services

   • Payroll

   • Administrative costs

Web3 Revenue

Web3 income is processed within the project’s onchain economy and is sent directly to the project wallet according to the current structure.

Net Profit Formation

After all mandatory financial stages are completed:

• Tax payments for Web2

• Coverage of operating expenses

The project’s net profit is formed.

The full net profit is accumulated in the project wallet and then used in the Hattori ecosystem distribution model.

Project Wallet

The financial architecture of the project is built with a focus on transparency. Every community member should be able to verify fund movement and distribution structure.

To achieve this, Hattori uses a single onchain project wallet. It works as the central capital storage point.

Operational logic:

1. Net profit is formed after:

   • Tax obligations for Web2

   • Operating expense coverage

2. All net profit is consolidated in the corporate onchain wallet

3. Funds are distributed according to the approved model

The project wallet acts as a public point of financial aggregation and control.

Distribution Model

Net profit is distributed in a fixed proportion:

• 50% to Gaming and Social Activity

  • Events

  • Quests

  • Social mechanics

  • Incentives for community growth and engagement

• 50% to Revenue Share

  • Distributed among token holders who participate in flexible staking

  • Rewards are proportional to each participant’s share in the staking pool

Revenue Share

50% of the project’s net profit goes to the Revenue Share mechanism. Only token holders who participate in flexible staking receive rewards. The reward amount depends on the participant’s share of the total staked tokens.

Basic distribution logic

If a participant owns 1% of all tokens placed in staking, they receive 1% of the Revenue Share pool.

Simple example:

• Distribution pool: 50% of the project’s net profit

• Participant share in staking: 1%

• Participant reward: 1% of the distribution pool

This example explains the principle and doesn’t include all model parameters.