# Background

Nowadays, the Internet has become an essential infrastructure in our daily lives, with more than 5 billion people accessing it worldwide. Since we are born with social requirements, online social media has become a crucial part of our virtual lives, allowing us to make friends online easily and connect with people we may have never met in person.

However, this positive trend has been overshadowed by the monopolistic control of major industry players such as Meta (formerly Facebook), resulting in a loss of ownership over our accounts and data. Moreover, we are constantly bombarded with commercial exploitation, spam content, and information cocoons from these giants.

Only Web3 can fix these issues and we're glad to see progress being made in the right direction every day.

By leveraging blockchain technology, we can finally take control of our own assets, data and accounts. With innovative SocialFi projects such as Farcaster and Nostr, which are building the decentralized infrastructure to replace centralized platforms like X (formerly Twitter), we can post content freely and have ownership of both the account and content.

Still, there is more work to be done. We need an additional layer that connects all data and accounts, enabling fair monetization and restructuring of commercial profits. This will eliminate the exploitative practices of Web2 social giants and ensure a more equitable distribution of benefits for everyone.

We firmly believe that only a profitable business model possesses the ability to consistently attract new users to embrace Web3 and successfully complete the historic revolution of social monopolies. Looking ahead, with the mass adoption of AI, we might have the opportunity to create a new paradigm of UBI (Universal Basic Income) based on the Web3 social stack, in collaboration with all our remarkable partners.

This is the very mission of Halo. Let's unveil the transformative possibilities together.


# Halo Overview

Halo is dedicated to establishing a monetization layer within the SocialFi field and creating a new paradigm for fair allocation of personal social influence value. Built upon existing technology infrastructure, Halo ensures there is no monopoly or exploitation involved. Additionally, we will introduce decentralized governance from the Halo community to ensure all participating parties receive a reasonable share of the overall commercial revenue.

Every individual inherently holds economic value. Halo, like other Web2 giants, has the capacity to monetize values associated with advertisements, but does so under the free will of users and protects their individual privacy through blockchain technology. Beyond the value of advertisements, there exists a more significant avenue for monetization: data value.

With the rapid development of the AI industry, AI is poised to gradually replace human labor. Since the goal of AI is to serve human beings better in the long term, AI companies are consistently training their AI systems to gain a better understanding of their target clients. The AI should be capable of discerning trending topics and providing services tailored to individuals from diverse cultural and educational backgrounds.

Halo can provide competitive AI corpus to AI companies by utilizing the vast social content within Halo ecosystem. Compared with Scale AI or Reddit, Halo possesses complete copyright and user consent. Furthermore, revenue generated will be equitably distributed among all data contributors, fostering a mutually beneficial environment.

This is Halo!

To realize this social monetization layer, we have meticulously crafted a comprehensive design encompassing decentralized governance product stacks and tokenomics. The subsequent chapters will provide an in-depth introduction to these aspects.

[<br>](https://halo-social-1.gitbook.io/halo-docs)


# Monetization of Social Value

There are numerous methods for monetizing personal social value in the Web2 world, but few of them can serve as references for Halo due to issues such as data abuse, privacy leakage, degrading user experience, etc.

We need to construct our approach from scratch in a Web3 manner, with an initial focus on monetization within the Web3 sphere in the first stage. The following section provides an overview of our plan.


# 1. Composition of social value

From a social ecosystem perspective, here is the formula of how to calculate social influence value: **Social Value = Endorsement Value + Advertising Value + Data Value**&#x20;

Both "Endorsement Value" and "Advertising Value" are associated with advertising, while "Data Value" is monetized through AI corpus services.

* **Endorsement Value**

Endorsement value originates from users’ activities and influence on social platforms. When users interact with specific tokens or DApps, or initiate positive discussions about certain tokens or DApps, their actions are considered endorsement of these projects. This endorsement not only promotes the project within the Halo ecosystem but also brings potential followers and users. To the project. The greater the social influence, the higher the commercial value of personal endorsement.

* **Advertising Value**

Any real user has the potential to be a target user for some specific project. If the user consents to receive ads tailored to their investment preference, the advertiser should compensate for this promotional service. This represents the most prevalent advertising business model, and it is also the primary avenue through which Web2 social giants extract substantial profits from users.

* **Data Value**

As long as you're a potential client for an AI company, the data that you leave on the Internet deserves to be learned by AI to provide better services to a similar group of clients. With the promotion of ChatGPT, the fervor for AI technology is rapidly spreading worldwide. As AI becomes more widespread, services catering to specific verticals and target audiences become increasingly specialized. Consequently, social data gains greater value in this evolving landscape.<br>


# 2. Monetization methods

In terms of endorsement value and advertising value, the monetization method is pretty clear: advertisers pay for promotion. Compared with Web2 giants, we’ll adhere to four fundamental principles.

* **Follow users' free will**

Users always have the freedom to decide whether they want to monetize their social influence.

* **No privacy leakage**

Your personal privacy will be encrypted and you have complete ownership of it.

* **Transparency**

All the deals will be settled with Halo token and recorded on chain, providing open access to all.

* **Decentralized governance**

We will maintain a lean team and foster a community-driven ecosystem to achieve our goals. Almost all the promotion methods in Web3 are address-based, leading to robots reaping the most benefits. However, Halo aims to pioneer a user-based ecosystem, and we believe that introducing real users to excellent projects will have a positive impact on the entire Web3 industry.&#x20;

The monetization of data value via AI corpus is still in the early stage but has substantial growth potential in the long term.&#x20;

The process of converting raw data into AI-usable data is not complex. The core data labeling service can be handled by most people. However, the current industry is plagued with the problem of data fragmentation and lacks unified production and processing standards. The ownership of data copyrights is also vague and lacks unified regulations, leading to a relative lack of high-quality corpus. Leading AI giants have recognized this issue, and ChatGPT, along with giants like Google, have begun to sign long-term cooperation agreements with The New York Times and Reddit.&#x20;

Halo, as an innovative Web3 project, provides a solution to meet the demand for high-quality labeled data for AI and realizes the monetization of user data in this process. We have the ability to acquire both on-chain transactions and social content, and we have complete copyright and user recognition. By integrating the power of the community to complete the data labeling tasks, and through decentralized governance, the reasonable redistribution of business profits is achieved.&#x20;

We don't believe that AI giants will compensate individuals for job losses out of a sense of morality. However, Halo finds a way to take back the initiative in the game through the market.

[<br>](https://halo-social-1.gitbook.io/halo-docs/monetization-of-social-value/1.-composition-of-social-value)


# Technical Architecture

Halo's technical architecture wasn't entirely built from scratch. Adhering to the spirit of Web3, we fully cooperate with excellent projects in the industry, embed products into the entire ecology, and achieve win-win results with partners.

<figure><img src="/files/pXdSKRMfHNxMvxxIw6Kj" alt=""><figcaption></figcaption></figure>

From Halo's perspective, our stack is divided into 3 layers: the first layer, data storage, is the foundation of social monetization. This layer already has a complete infrastructure, with major public chains storing transaction and asset information, and some social protocols storing social content posted by users. The combination of these two forms the technical basis for monetizing social value.

The second and third layers are the main product stacks that Halo needs to build. They respectively carry two core functions: social connection and monetization. The second layer is the focus of our current construction, because connection is the basis of social interaction. The third layer involves the actual monetization scenarios. At the same time, by leveraging ZK proof technology, Halo has the ability to build an open ecosystem that meets regulatory needs.

[<br>](https://halo-social-1.gitbook.io/halo-docs/monetization-of-social-value/2.-monetization-methods)


# 1. Social Connection

Halo DID will be used to aggregate users' social information, including avatars, nicknames, ratings, following lists, followers, and activities. At the same time, users' various crypto assets and transactions can be combined with social content through wallet aggregator, and will access various decentralized content protocols and storage layers, so that users have content autonomy.


# Halo DID

Halo DID is implemented through a set of smart contracts that store a user's user profile, following relationships, account information, medals, loyalty and other data on the blockchain.

* **User Profile**

Users can set nicknames, avatar, profile and other information, which can be changed at any time through on-chain transactions. User information is not only used in the social network for other users to identify, but also for quick operation in wallet aggregator transfers.

* **Following Relationship**

The following relationship is social data that changes frequently. Halo DID will adopt a solution that combines on-chain and off-chain to avoid users frequently paying expensive on-chain fees while ensuring data verifiability.

* **Social Content**

Halo DID will be associated with one or more decentralized social networks and storage protocols, such as Nostr, Farcaster, and Lens Protocol, which use decentralized schemes to store users' social content. Advantages over Web2 include user ownership, permanent storage, and privacy protection. Users can automatically sync their social content to Halo by linking their third-party accounts to Halo DID. At the same time, social content published on Halo can also be directly synced to one or more decentralized social networks, greatly reducing the operational cost of users publishing content on multiple platforms.&#x20;

By leveraging the native privacy features of decentralized social networks or other encrypted data networks, users can encrypt their social content so that it is only visible to users who meet certain criteria. While protecting user privacy, this can also expand other additional functions, such as paid reading of content or being visible only to followers, etc.

* **Level**

A user's level will be included as a part of the DID: the Halo Membership Pass. Each Halo Membership Pass contains level information. The higher the level, the greater the rights and interests within the Halo ecosystem and partner ecosystem. Reaching the highest level also enables you to participate in community governance and receive Halo token rewards. Users do not need to buy or sell the user information stored in the DID, but only need to trade Membership Pass in the NFT market to get the rights they want.

* **Loyalty**

User loyalty is currently recorded in each Halo account in the form of XP through a centralized server and bound to Halo DID. By participating in various activities within the Halo ecosystem, users can increase their loyalty, earn XP, and upgrade their Membership Pass to a higher level.

* **Account Information**

Account information includes the user's blockchain addresses as well as other account and identity information. When users use multiple addresses on multiple blockchain networks, they only need to hold Halo DID on one of the addresses, and associate other addresses with it, so that the information including social content and attention relations of multiple addresses can be totally bound to this DID, so that users can reduce complex operating costs when changing, adding or deleting addresses.&#x20;

Users' other accounts, such as fiat accounts, Web2 social accounts, CEX accounts, etc., will also play different roles in the Halo social network, such as making user assets more complete, or helping other users or projects to identify themselves, etc.&#x20;

Considering data privacy issues, all account information needs to be authorized by the user before it can be displayed or provided with data services.Users can also set one or more accounts to be visible only to themselves, so that other participants will not be able to access your information.

* **Medal**

Users earn Halo Medals by participating in activities within the Halo ecosystem. Medals will be bonded with Halo DID and cannot be sold or transferred. This will make the user's on-chain identity more complete, help the user to increase the value of DID they hold, and also help advertisers to quickly target users.


# Wallet Aggregator

Halo Wallet Aggregator will aggregate a user's various wallet assets, whether it is a mnemonic wallet, fiat account, smart contract wallet, hardware wallet, watch-only wallet, all can be viewed under the same asset board.

The user's various wallet accounts can be bonded with DID, and the benefits are:Users can display their assets and transactions more completely in the social scene. Suppose a tape trader is using Halo, he can show all of his wallet assets and trading records to his fans, and interpret any trades and positions.

Users can choose to make some accounts invisible to others to ensure their privacy.When users log in with any wallet bound by DID, they can have unified social interaction without worrying about repeated following or incoherent comments.

* **Transaction Analysis**

Transaction analysis is a complex task, and Halo will do it with the help of our community. Through community governance, Halo can continuously optimize the analysis of various transactions to ensure the accuracy of analysis.

* **Transaction Privacy**

By connecting to other privacy protocols, Halo will provide users with transaction and asset privacy. This may bring additional costs, users can choose: Pay for additional privacy protection to make some transactions and assets invisible to others. Make your wallet transactions visible to others and earn benefits.


# 2. Monetization

Through the promotion platform, AI corpus, and identity oracle, the Halo Monetization layer will allow users of different roles to monetize their social values. At the same time, in terms of data privacy, by using encryption technologies such as zero-knowledge proof, Halo has the ability to build an open ecosystem that meets regulatory needs while ensuring the privacy and security of user data.


# Promotion Platform

Promotion Platform completes the registration, placement and after-sales process of ads through a set of smart contracts.

First, advertisers need to complete registration in the Halo Promotion Platform contract, which can be submitted by any entity. The eligibility of advertisers will be reviewed through a community governance process at an early stage. In the future, we will decide whether to waive the review process based on actual development.

After registration, advertisers can serve ads and set relevant parameters, including AD type, reward method, AD content, etc. Advertisers need to stake a certain number of Halo tokens and complete the ads serving in the contract.

Users can view the ads through the Halo App, and some of the ads may require a certain level of Halo DID or medal. Different levels of users may receive different rewards for viewing ads. At the same time, users can also report if there is any fraud in the ads.

Ads reported as fraudulent will be voted on through community governance to determine whether the ad is indeed fraudulent. If the voting result is "fraud", the Halo tokens staked by the advertiser will be deducted to compensate the affected users. If the voting result is "no fraud", the staked Halo tokens will be charged as promotion fees.


# AI Corpus

AI Corpus allows users to earn revenue through both data authorization and data labeling.

* **Data Authorization**

Data authorization is completed through a combination of on-chain and off-chain. Users can trigger data authorization transactions in the Halo app. After authorization, the authorization status will be recorded in the smart contract, and the smart contract is responsible for determining the authorization status and calculating rewards. After authorization, the user can cancel the authorization at any time, which will also interrupt the rewards.

* **Data Labeling**

Users can participate in data labeling in the Halo app. Users who participating in data labeling need to stake a certain amount of Halo tokens to prevent malicious behavior. The data will be grouped, labeled, and eventually provided to third-party companies for a fee. Groupings are continuously adjusted to quickly identify malicious behavior. Once malicious behavior such as mislabeling is discovered, the user's staked Halo tokens will be deducted and distributed to other affected users. The remuneration for data annotation will be distributed according to the workload of different users.


# Identity Oracle

Privacy information bound to Halo DID, such as Web2 accounts, identification, etc., will be encrypted and stored according to user requirements. Users can choose to display it to specific users within the Halo app or to third parties through Identity Oracle. Identity Oracle will be based on zero-knowledge proof technology. The user only needs to provide proof of relevant information for verification and will not expose the information itself when authorizing the provision to a third party. This can effectively protect the privacy of users, in the process of information transmission, or in the face of possible third-party malicious behavior, information will not be leaked.


# Community Governance

Our understanding of community governance will be somewhat different from current mainstream views. The essence of Halo community governance is to establish a global production relationship network based on decentralized social applications. Through Halo tokenomics, the Halo ecosystem will be globalized and community-based, giving users the power to shape the platform, and restoring the open, user-centered nature of Internet social networking. Halo’s community governance includes:

* **Content Governance:** Focused on managing and moderating user-generated content within the Halo application.
* **AI Data Governance:** Leverage the power of the community for high-quality and secure AI corpus services for businesses.
* **Ecosystem Governence:** Oversee ecosystem-level decisions regarding treasure expenses, budgets, profit distribution weight, and general business strategies.


# 1. Content Governance

Halo prioritizes a safe and informative social environment for its users. This is achieved through a robust content governance system that empowers the community to participate in shaping the platform's content.

We won't fully rely on the algorithm to recommend content to users like most of the Web2 platforms. Halo prefers a hybrid strategy. Content governance refers to the set of rules and processes that define how content is created, reviewed, and moderated within the Halo ecosystem. This system ensures high-quality and trustworthy information is readily available for all users.

* **Composition of Content**
* The content governance system applies to all kinds of user-generated content within the Halo ecosystem and consists of three parts. The first and second parts are mainly related to providing users with accurate content recommendations. The third part is used to improve the accuracy and comprehensiveness of the data.
  * **Social Posts & Comments:** This encompasses posts, reposts, and comments shared by users.
  * **Transaction Analysis Labels:** These labels categorize user activities like swaps, deposits, and smart contract interactions, aiding in transaction analysis and visualization.
  * **Address Labels：**&#x54;hese labels are used to accurately display addresses with distinctive characteristics to users, such as Smart Money, Whale, Influencer, etc. Address governance will also include the review and certification required when users apply for relevant labels.
* **Governance Roles**
* Halo leverages a tiered system based on the level of Halo Membership Pass. Higher levels grant access to more complex governance processes.
  * **Creator:** Create content or initial transaction
  * **Editor:** Discover and nominate high-quality content
  * **Voter:** Vote for Posts nominated by Editors
  * **Reporter:** Report harmful content includes but is not limited to: hate speech, violent content, pornographic content, spam, false information, etc.
  * **Review Committee:** The review committee is mainly responsible for reviewing and issuing results on transaction analysis labels, address labels, content reports, etc. In the short term, the members of the committee will mainly be from the Halo team with relevant positions and experts in relevant fields in the Halo community.

The roles and responsibilities will be adjusted based on actual operational needs.

* **Governance Process**
  * **High-Quality Content Discovery:**
    * The Editor Program establishes guidelines for identifying high-quality content.
    * Users nominate and vote on posts based on these guidelines.
    * Content creators and active participants in the voting process receive rewards as specified in the Editor Program.
  * **Content Moderation & Reporting:**
    * Users can report content they believe violates community guidelines.
    * The community votes on reported content.
    * Content deemed inappropriate will have reduced exposure or be hidden, and repeat offenders may face financial penalties (such as Halo XP deductions) or membership level demotion.
  * **Label Management (Including Transaction & Address Labels):**
    * Users with the appropriate DID level will be able to suggest adjustments to transaction analysis labels (e.g., add missing labels, correct errors).
    * Adjustments approved by the review committee (or governance nodes in the future) will be adopted.
* **Reward Distribution**
* By actively participating in governance, users contribute to a positive social environment while receiving rewards for their efforts.The rewards at this stage include XP and membership level improvement. These two key elements will determine the participants’ Token airdrop share in each season.


# 2. Corpus Governance

Leveraging AI data labeling on Halo is also on our roadmap. With the power of the community, we will be able to provide businesses with high-quality labeled data and secure AI corpus services. At the same time, the economic value generated by providing corresponding services will also benefit participating users through tokenomics.

* **Data Labeling Process**
  * **Data Collection:** Halo identifies data sets requiring annotation, such as social media posts, transaction records, and removes user privacy data.
  * **Task Allocation:** Users with varying Membership Pass levels participate in data labeling tasks based on their expertise and interests.
  * **Quality Assurance:** A multi-labeled review process ensures the accuracy and consistency of labeled data.

In the early stages, the AI data review committee oversees the data labeling process and ensures compliance with ethical standards. And the reward will be allocated in the same way as content governance.It's an innovation for both us and the industry.


# 3. Ecosystem Governence

Ecosystem Governence empowers the community to actively participate in shaping the future of the Halo platform. Through a transparent and collaborative governance process, Halo token holders collectively make crucial decisions regarding ecosystem development, financial management, and strategic direction. Governance applications will begin after TGE and will only be open to users holding L6 Halo Membership Pass. Your governance weight will depend on how many tokens you stake and how long you stake them.

* **Key Governance Matters**
* A variety of proposals impacting the platform's development and operation are included:
  * **Community Leadership:** Appointment and removal of community DAO council members.
  * **Financial Management:** Approval of annual and quarterly financial budgets and expenditures for the Halo community fund.
  * **Strategic Direction:** Decisions regarding the strategic positioning of Halo products.
  * **Profit Sharing Governance:** Adjustments to existing incentives and penalties rules in the content governance process.

Halo Governance Committee follows a structured process for proposal creation, voting, and implementation. Specific rules will be released after TGE.


# 4. A Node-Driven Governance Upgrade

As the operating mechanism of the governance process gradually improves, Halo is poised to usher in a new era of community-powered governance with a Node-Driven Governance by 2025. This will be the next step for Halo to achieve a more decentralized governance system with a more efficient and robust production capacity.

The role of node will be filled by individuals and teams that have demonstrated professional capabilities during the first phase of the governance process. These nodes will play an important role in the operation of the governance process, the improvement of rules, and the distribution of rewards.

After the governance model is upgraded, a part of Halo token rewards will be distributed through governance nodes. Halo token stakers can delegate their voting rights to these nodes. In return, nodes have the discretion to share a portion of the received token rewards with the delegators.


# Halo Ecosystem Overview (New)

**Halo and the Roles of $HLO, Halo Memebership Pass (HMP), and Halo Influencer Badges (HIB)**

<figure><img src="/files/8pAoNbVEr5GEAWHvbvII" alt=""><figcaption></figcaption></figure>

Halo is poised to redefine SocialFi, creating a Web3 super social app that seamlessly integrates social engagement, monetization, and innovation.&#x20;

### A Community-Driven Ecosystem

Halo is built to empower its users. With 42% of the total $HLO supply allocated to the community, Halo is not just a platform; it’s a shared ecosystem where every participant has a stake in its success.

Halo belongs to us all. Together, we are shaping the future of SocialFi.


# 1. The Social Monetization Layer

Halo is not just another SocialFi project. Unlike others that prioritize decentralization without practical monetization strategies, Halo introduces a Social Monetization Layer to address fundamental gaps between Web2 and Web3.

* Web2 users bring a massive user base but lack fair profit-sharing models.
* Web3 users benefit from high-quality, growth-oriented assets but struggle to scale their user base.

Halo bridges these two worlds by leveraging social mining, empowering Web2 users to earn while introducing them to Web3. As the ecosystem grows, Halo will collect valuable user data to offer AI training services, enabling users to profit from the booming AI industry.

Halo aims to be a true game-changer, providing early adopters with earnings that can cover daily expenses and more.


# 2. $HLO and HMP Social Mining

Social mining lies at the heart of Halo’s ecosystem, powered by the Halo Membership Pass (HMP):

* Identity Requirement: HMP remains the essential credential for receiving airdrops and participating in social mining.
* Leveling Up: HMP levels can no longer be upgraded for free. Users must complete a certain level of contribution and burn $HLO as a gas fee.
* Staking Integration: Higher HMP levels offer greater mining weights, enhancing reward potential.

Dynamic Token Vesting introduces a significant innovation:

* $HLO vesting will adjust dynamically based on market sentiment, using debt leverage to stabilize token circulation across bull and bear markets.

This ensures resilience and adaptability, even during volatile market conditions.


# 3. The Open Monetization Engine

The Monetization Engine serves as the core of Halo’s ecosystem, creating pathways to onboard Web2 users into Web3 through engaging and rewarding tasks.

* Seasonal Social Quests: Users earn XP and third-party rewards by completing tasks, with over $100,000 already distributed to the community.
* Bounty QA: Launching soon in collaboration with Movement Labs, this gamified Q\&A feature adds another layer of earning opportunities.

The Monetization Engine will evolve into an open system, enabling developers and creators to build additional features, such as:

* Messaging bots
* Sticker marketplaces
* Paid subscriptions for smart money tracking

Halo plans to establish a foundation to support third-party developers in expanding the ecosystem.


# 4. HIB: The Node of Halo

The Halo Influencer Badge (HIB) is a critical component of the Halo ecosystem, serving as the foundation for future mining nodes.

* Performance: With over 70 HIBs issued, these badges have seen an average price increase of 8,000% within the first 24 hours of launch.
* Future Nodes: Only HIB issuers will qualify to run Halo nodes, solidifying their role as key contributors to the ecosystem.

To strengthen this foundation, Halo is actively inviting:

* Influencers to create content
* Artists to develop assets like stickers
* Developers to build monetization tools
* Agencies to contribute to AI training data


# The $HLO Token (New)

$HLO isn’t just another token—it’s the cornerstone of the entire Halo ecosystem, designed to empower users and enhance their experience on the platform. Here’s a comprehensive look at how $HLO brings value and why it’s worth holding or integrating into your activities for future appreciation.


# 1. Token Utilities & Benefits

<figure><img src="/files/VcDk3Yt9WbKcwsTF1YyA" alt="" width="563"><figcaption></figcaption></figure>

**1. Fuel for Halo’s Monetization Engine**

$HLO acts as the primary currency for all monetization activities within the platform. Whether you’re accessing premium features, enhancing your social engagement, or participating in campaigns, $HLO ensures smooth transactions and unlocks advanced capabilities.

### **2. Social Mining Participation**

Users use $HLO to participate in Halo’s social activities when contributing to the ecosystem, whether through creating content, joining in Bounty QA sessions, or completing seasonal quests.

Everyone can also earn $HLO with their contributions in building our ecosystem. This incentivizes continuous engagement and strengthens the community.

### **3. Partnerships & Quests Integration**

$HLO will play a pivotal role in establishing partnerships and hosting collaborative quests and activities on our platform. Partner projects and organizations will use $HLO tokens to initiate and manage quests or community-driven events. Not only does this enhance the token’s demand but it also creates opportunities for users to participate in exclusive activities and earn rewards.

### **4. Governance and Decision-Making**

Holding $HLO grants you voting power in the governance of Halo. Your voice can influence key platform decisions, upcoming features, and overall direction, ensuring that the community’s vision is upheld.

### **5. Exclusive Access and Features**

A certain amount of $HLO tokens will be required to upgrade your Halo Membership Pass (HMP) and other platform assets like HIBs. This allows users to maximize their benefits, access exclusive content, and elevate their social monetization potential.

### **6. Settlement for AI and Ad Services**

$HLO will be used for settling payments within Halo’s AI training services and advertising business. This utility bolsters the token’s demand and supports the platform’s growth as more users and businesses leverage these features.


# 2. Why Hold $HLO? (Staking and Long-Term Benefits)

While we haven’t officially launched our staking feature yet, we’re excited to reveal that there will be compelling opportunities for those who choose to commit to the Halo ecosystem. Expect attractive APYs for stakers, creating additional incentives to hold and contribute to the platform’s sustainability.

Stay tuned!

### **Why Hold $HLO?**

With a robust ecosystem of monetization, governance, and utility, $HLO is positioned for long-term growth. Holding or using $HLO opens doors to a range of benefits that enhance your experience and create continuous value. As the above suggests, we have created multiple scenarios and use cases for the use of $HLO. While we continue to expand our ecosystem with more partners, the $HLO utilities will also expand. The limited supply design ensures the token will only become rarer as we go forward in our journey.

Stay tuned for more updates and prepare to maximize your $HLO journey. Whether you’re a creator, influencer, or passionate community member, $HLO is designed to support and reward you as part of Halo’s thriving ecosystem.


# 3. How to Get An Airdrop

Halo is a community-driven ecosystem, and community airdrops will account for the largest share of Halo Tokens. 42% of the total token issuance will be issued as a community incentive.&#x20;

Before the node governance starts, community members' airdrop share will be determined by 2 indicators:

**Halo Membership pass:** The higher the level of Halo Membership pass you hold, the larger your share of the airdrop will be.

**Halo XP:** The more Halo XP you earn, the larger your share of the airdrop will be.

* **Halo Membership Pass**

The Halo Membership pass is a crucial credential to measure the user's contribution to the Halo ecosystem. Membership level information, membership rights and interests are bound to the Membership pass.

Halo Membership Pass has a season-based promotion system. The top ranked users at the same level can be directly eligible for promotion.

* **Halo XP**

Following the release of Halo Membership Pass, existing Halo XP will be upgraded to a community loyalty metric that measures users' activity and contribution to the Halo ecosystem.

The number of Halo XP will remain the same after the upgrade. XP can be earned by holding a Halo Membership Pass, completing daily missions, and participating in Halo campaigns.

As a measure of loyalty, Halo XP is tied to Halo Membership Pass, which does not support trading. The earlier you join the community, the better chance you have to earn more XP rewards.


# 4. $HLO Airdrop Rules

The **$HLO airdrop** is your gateway to becoming a part of the thriving Halo ecosystem. Whether you’re a long-time contributor or a new user, this is your chance to earn $HLO tokens by engaging with the platform.

Our core principle is simple: **the more you contribute, the bigger your allocation.** From holding an **HMP or HGP** to completing tasks and earning XP, every action counts.

As we approach the TGE, here’s everything you need to know to maximize your rewards and secure your share of the $HLO airdrop.

### **For Halo Membership Pass (HMP) Holders** <a href="#heading-for-halo-membership-pass-hmp-holders" id="heading-for-halo-membership-pass-hmp-holders"></a>

<figure><img src="/files/cUcXW7FgR1pAn5AWvqBT" alt=""><figcaption></figcaption></figure>

1. **100% Unlock at TGE.**
2. **HMP is Required:** Link your account before the snapshot (TBA).
3. **Higher Level, Higher Rewards:** Each HMP level guarantees a base reward.
4. **XP-to-$HLO Exchange:** Higher HMP levels get better exchange rates.
5. **Total Reward = Base Reward + XP Exchanged.**

### **For Halo Genesis Pass (HGP) Holders** <a href="#heading-for-halo-genesis-pass-hgp-holders" id="heading-for-halo-genesis-pass-hgp-holders"></a>

<figure><img src="/files/g9ik7dIOX0jQCGKKzU4E" alt=""><figcaption></figcaption></figure>

1. **10% Unlock at TGE:** Remaining 90% vested monthly over 12 months.
2. **HMP is Also Required:** Link your account before the snapshot (TBA).
3. **Higher Level, Higher Rewards:** Allocations increase with higher HMP levels.
4. **Last Continuous Holding Days through Claiming Matter:** The longer you hold your HGP continuously, the higher your allocation. Multiple holding periods cannot be combined.
5. **Holding Multiple HGPs Increases Rewards.**
6. **Total Reward = \[HMP Level Coefficient × Last Continuous Holding Days (across all HGPs) Coefficient]/Sum of all Coefficient \* 2% HGP Pool**

#### **Notes for HGP Holders** <a href="#heading-notes-for-hgp-holders" id="heading-notes-for-hgp-holders"></a>

1. **Selling HGP Resets Your Airdrop Coefficient to Zero:** If you sell your HGP before claiming, you lose all progress. Buying it back resets your holding days to 1.
2. **Only Last Continuous Holding Period through Claiming Counts:** for example you hold a HGP for 365 days but sell it 2 days before the claim, and buy back 1 day before the claim. Your holding days will be counted as 1.
3. **Burn HGP at Claim:** During the claim, you’ll need to burn your HGP. The remaining 90% vesting tokens will be linked to your HMP.

### **Sybil & Cheating Prevention** <a href="#heading-sybil--cheating-prevention-updated" id="heading-sybil--cheating-prevention-updated"></a>

1. **Minimum Balance:** All eligible addresses must hold a token balance of **$10 or more** at the snapshot. Here’s what qualifies as eligible assets:
   1. **Halo Assets**: Halo Membership Pass (HMP), Halo Genesis Pass (HGP), and Halo Influencer Badges (HIB).
   2. **Stablecoins**: USDT or USDC held on blockchains supported by Halo.
   3. Staked assets, other tokens, or other assets will **NOT** count.
   4. Due to potential price fluctuations in HMP or HIB, we strongly recommend holding a small reserve of USDT or USDC in your wallet. This ensures you meet the eligibility criteria at the time of the snapshot.
2. **Fair Play Only:** Users found cheating, such as illegitimately obtaining XP or disrupting past seasons, may be disqualified from the airdrop.

### Snapshot Time

To be announced.


# 5. Tokenomics

<figure><img src="/files/VHFnKK2KNlTdzSX6dd4Z" alt=""><figcaption></figcaption></figure>

* **The total number of $HLO tokens:** 2.1 billion, and the distribution and unlocking plan is as follows.
* **Airdrop and Ecosystem incentives:** 42%
  * Airdrop: 4%, TGE 100%
  * Early Adopter(HGP): 2%, TGE 10%, 12-month linear release
  * Ecosystem incentives: 36%, TGE 0%, 3-month cliff. For the remaining portion, it will be used for monthly season airdrop campaign, rewarding players in future seasons. The entire airdrop process will be completed within 36 months following the TGE.
* **Investors:** 15%
  * Seed Round: 6.8%, TGE 10%, 3-month cliff, 36-month linear release
  * Strategy Round: 8.2%, TGE 10%, 3-month cliff, 24-month linear release
* **Advisor Pool:** 2%, TGE 10%, 12-month linear release
* **Public Sale/OTC:** 2%, TGE 10%, 12-month linear release
* **Launchpool:** 1%, TGE 100%
* **Team:** 12%, TGE 0%, 6-month cliff, 36-month linear release
* **Treasury**: 20%, TGE 5%, 6-month cliff, 48-month linear release
* **Marketing**: 4%, TGE 15%, 3-month cliff, 36-month linear release
* **Liquidity**: 2%, TGE 100%

<figure><img src="/files/YiAMhO7sCXq1wNIC7Qoj" alt=""><figcaption></figcaption></figure>

During our TGE phase, we plan to release 10.7% of the total $HLO supply, with 4.2% allocated to the user airdrop—representing 39.3% of the initial circulating supply. The remaining 60.7% will be used for Liquidity (2%), Investors (1.5%), Treasury (1%), Launchpool (1%) and others including Marketing, Advisor, Public Sale (1%). This approach ensures both a solid initial circulation and sustained momentum to drive Halo’s long-term growth.

The Halo team reserves the right to adjust tokenomics as needed to support optimal ecosystem development.


