FAQs

The FAQ has been divided into three categories:

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The Hugs Platform

What is the difference between Hugs and traditional crowdsourcing?

When a company or an organisation needs to tackle specific issues, they must result in methods such as bug bounty programs and specialised consultancy services. Not only is this expensive and cumbersome, but it can often lead to a certain “tunnel-vision”. Hence, your specific problems often don’t get solved, simply because the “experts” don’t always even notice them or the financial cost is way too high.

Hugs is radically different. Our platform is omni-directional. We enable your users to help you directly. The users (who already use your products) are in control. They can launch their own specific campaigns, improve their reputation scores and earn rewards. Your issues are solved in the fastest, cheapest and most effective way possible, while the users are rewarded for their efforts. Of course, businesses can still create traditional crowdsourcing campaigns as well.

Check out our Hugs Whitepaper to learn how Hugs can improve your business and projects.

Who are the users of the Hugs Platform?

Our platform's users and stakeholders are;

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App builders and developers who use our platform and deploy their amazing dApps and even their very own tokens.
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Contributors add value to the ecosystem by making valuable contributions, organise crowdsourcing ...
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Reviewers (seasoned Contributors) randomly check and assess every contribution for objectivity, validity, and relevance. They help to secure the quality of every single contribution and earn rewards for their efforts.
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Affiliates (seasoned Contributors) are assigned leads and have the authority to onboard new Clients and manage client portfolios.
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Clients start their own campaigns or can buy into an existing campaign using the HUGS token.

Using decentralised reputation in the same way as proof of work mining, all the stakeholders are rewarded for their honest and objective participation that results in improving the quality of our online and offline experiences.

For more detailed information, please visit our Hugs Whitepaper.

What POCs (Proof Of Concept) is Hugs working on?

Currently, we are passionately developing:

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A website error reporting tool
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A Smart city dApp
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A web 3.0 collaboration project
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Several partner pilots
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And much more...

What is your roadmap?

Our comprehensive roadmap can be found in our whitepaper.

What is the concept of the Reward Pool Hugs is exploring?

Please check out the Hugs Whitepaper to learn more about our unique Reward Pool.

How does the HUGS Reward Pool work?

A large amount of HUGS tokens will be reserved in the automated smart contract called the Reward Pool. This mechanism rewards Contributors and Reviewers for their relevant and objective contributions.

The Reward Pool is managed algorithmically and is always replenished, making sure that both Contributors, as well as Reviewers are rewarded for their efforts.

Please read our Hugs Whitepaper to learn more about the Reward Pool.  

Will NFTs be a part of the Hugs Platform?

Currently NFTs are a bit of a hot topic. We can only say that the Hugs team is interested in “real-world” applications of non-fungible token technology. We are fully aware how important it will be in the coming years, and we are interested in letting NFTs be a tool in the hands of our stakeholders instead of merely a gimmick.  

What are the gamification aspects of the Hugs Platform?

Gamification plays a vital part in our ecosystem. From the reviewing process and reputation building, to the use of Client leaderboards, ranks, and badges. Aside from this, the dApp developers are encouraged to implement their own gamification aspects.

Implementing gamification is an ongoing process and we are constantly looking for new ways to make our platform as fun, engaging, and productive as possible.

What are the unique selling propositions?

By fully utilising the power of crowdsourcing and decentralisation, we make sure that;

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Users are in full control on the Hugs Platform – People can start their own campaigns, join existing ones, and even develop their own dApps and amazing solutions.
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Reviewer Acceptance Based on the Prisoner’s Dilemma, we use a consensus-based and temper-proof approach to achieve the very best quality of contributions possible. The Reviewers are chosen automatically to minimise the risk of “subjective contamination” and must show a high decentralised reputation score. Only seasoned Contributors have the badge of honour to be a Reviewer.
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Reward Pool This unique algorithmic reward system is managed automatically and never runs dry, ensuring that the Contributors and Reviewers are rewarded for their efforts.
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Hugs Playground We provide all the needed tools and test environment to help developers. It’s fun, easy to use, and everyone is welcome to try it out.

Check out the Hugs Whitepaper for more information.

What is the Hugs Reviewer system?

Every single contribution passes through a serious vetting process whereby only the most objective, valid and valuable Contributions are eventually presented to the Clients. There are several systems of vetting contributions to ensure the best possible outcome. Here’s how it looks in practise.  

Valid contribution: “There’s a dead link on your website”  Contribution is objective, relevant and valuable to the client. It passes.  

Discarded contribution: “One of your employees looks just like Elon Musk” Contribution is subjective and irrelevant to the client. It’s discarded.  

Aside from the automated junk filtering systems, real life Reviewers (who are seasoned Contributors themselves) are assigned randomly to scrutinise every contribution made.

The Reviewer system exists (and is constantly improved) to provide the end-clients with the very best and most valuable information that will be directly relevant to their business and online activities.

How does Hugs generate revenue?

The primary income stream of Hugs consists of fees paid (in HUGS tokens) by the Clients in the ecosystem. As more products are deployed, the team will add additional revenue streams.

How does Hugs earn money at this moment?

We believe in our project with such love, confidence, and dedication that (before our token sale) we have been funding everything ourselves.

Is Hugs open for partnerships and pilots?

In the spirit of crowdsourcing, we always welcome partnerships and pilot projects. We encourage everyone to build on and use our Platform.

What is the potential of the Hugs Platform?

We are working day and night to make the Hugs Platform into a new global standard for crowdsourcing, decentralised reputation, smart city solutions. Our goal is to make sure that:

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Clients get the best quality reporting at a fraction of the cost.
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Users are rewarded for their talent, skills and knowledge, regardless of their age, gender, geographic location and nationality.
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dApp developers have access to the best and most user-friendly environment for deploying their products in the shortest amount of time.
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The quality of the entire internet is improved one step at a time.
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Decentralised reputation system replaces outdated systems such as degrees and resumes.

Very soon we will all be using Hugs' solution without even realising it. This technology will become as easy, intuitive, and accessible as possible. It is inevitable!

When did the Hugs Platform start?

The team has been nurturing the ideas and POCs (proof of concept) for a few years already. In April 2021 the Hugs projects officially started. Before announcing the Hugs Platform to the world, we spent most of our time on building POCs, legal procedures, and compliance.

This was necessary in order to fully future-proof our platform and be ready for any and every new regulation that will inevitably arrive to the crypto and blockchain industry very soon.

We constantly invest our time in building new POCs and pilots and we welcome you to join us.  

How is the Reputation and Quality Score determined?  

The Decentralised Reputation and Quality Scores will initially be determined by the following metrics:

Reputation metrics for the Contributor:

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Number of contributions
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Quality of contributions measured by the satisfaction of Clients
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Quality checks performed by Reviewers
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Voluntary tips granted by Clients as a gesture of gratitude

Reputation metrics for the Client:

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Fair acceptance or rejection rate of contributions
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Quality checks performed by Reviewers
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Number of HUGS tokens paid

These are off course not the only metrics. To learn more about our decentralised reputation system, please check out the Hugs Whitepaper.

What are Primary and Secondary Rewards?

Primary Rewards are distributed by the Reward Pool after the Reviewer accepts a contribution and deems it valuable, objective and relevant to the client. The Contributor and Reviewer(s) receive the primary reward paid in HUGS tokens.

In addition to the Primary Reward distributed by the Reward Pool; Contributors, Reviewers and Affiliates can receive a Secondary Reward. This Secondary Reward can be earned once a client marks a contribution as accepted. These rewards will be higher compared with the distributed Primary Reward by the Reward Pool after the Reviewers accepted the issue.

What is a Hugs Quality Label

Once a certain number of contributions have been made by Contributors, a Client, product, or brand will receive a quality label with a real-time score. Various metrics will be analysed by the algorithm against the number of contributions:

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The size and popularity of a brand or product
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The Client’s engagement with the crowd
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The speed of acting on a Contribution
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Other additional metrics

Just like the current ESG norms, the Hugs Quality Label is on its way to become a global standard.

The HUGS token

Why does Hugs need a token?

The HUGS token is the utility token that will be used in crowdsourcing software solutions built on top of the Hugs Platform. It’s the lifeblood of our ecosystem. It’s used for;

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Automated functionality of the Reward Pool
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Future solutions and dApps deployed on the Hugs Platform

There are too many projects relying on their token functionality alone. We have seen it time and time again. This is exactly why we work to make HUGS the ultimate fungible token for unprecedented utility for anyone working on (and outside of) the Hugs Platform.

What’s the token value?

During the first round of the Private Sale a max of 7 million HUGS will be sold. The token price during the first phase of the Private Sale is set at $0.50. This price will rise to $0.75 during the next phases of the private sale.

18 million more tokens are reserved for subsequent token sale rounds. This can include additional private sale phases, a public sale, or an IEO. The token price for these additional token sale phases has yet to be determined.

Is there any governance linked to the HUGS token?

We are currently doing research on implementing governance on the Hugs Platform.

What technology will Hugs be built on?

We are building on Solana due to the best possible combination of the factors needed for the Hugs Platform (speed, usability, transaction costs, …).

Will I be able to stake my HUGS tokens?

We are exploring the possibility of staking, however there are regulatory hurdles that need to be solved in this process. Please follow us on our socials for updates.

How many tokens will there be?

The maximum supply of HUGS is: 100.000.000 tokens.  HUGS is a Solana SPL token and is divisible by 9 decimals. The smallest unit is 0.000000001 HUGS.

How will the tokens be allocated?

Please read our Hugs Whitepaper for more information about the token distribution.

The Token Sale

What token sale phases do you have?

Our private token sale is currently ongoing. Please email us with your application.

During the first round of our Private Sale a max of 7 million HUGS will be sold. The token price during the first phase of the Private Sale is set at $0.50. This price will rise to $0.75 during the next phases of the private sale.

18 million more tokens are reserved for subsequent token sale rounds. This can include additional private sale phases, a public sale, or an IEO. The token price for these additional token sale phases has yet to be determined.

Why is there an AML and KYC process for private sale investors

Regulation is coming to the crypto and blockchain space. Not only will this weed out most scams, bad actors and bloated zombie projects, but it will open the doors to institutional investors worldwide.

This is exactly why we spent several months on being fully compliant. We are throwing all our energy, love and efforts into the Hugs Platform and working tirelessly to turn it into a new global quality standard. Being regulatory compliant is the only way for us to be fully future-proof and have a clear runway for all our plans and developments. In short, we are fully compliant, locked and loaded, ready to put the pedal to the metal.

Feel free to apply for the HUGS token sale via email.

What’s your AML and KYC process?

The process will feel very familiar to anyone who already participated in traditional private sale investment rounds and it’s very simple.

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First you email to us expressing your interest in the HUGS token sale.
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Next up, it’s the Identity verification (KYC) process. This is very similar to opening a trading account or registering on a centralized exchange.
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After your KYC completion, we will do all the necessary due diligence (Conforming to the FATF guidelines and GFSC rules).
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Next, you will receive the token sale agreement (which you'll need to sign of course) and the invitation to pay via wire transfer (we are working on accepting crypto payments in stable coins after phase 1 of the private sale).
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You'll receive your confirmation per email and your token purchase is hereby complete.

Note. Hugs ltd is based in Gibraltar (one of the few crypto-ready jurisdictions in the world). This is why our token sale is registered with the GFSC (Gibraltar Financial Services Commission). Having the solid regulatory framework ensures that your HUGS tokens are fully future-proof and completely free from all upcoming crypto regulations that will inevitably arrive in the near future.

Can American investors participate in the token sale?

Only US based companies and VC funds can participate in the token sale. US individuals are unfortunately excluded from the participation due to international regulations.

According to the FATF (Financial Action Task Force) regulations, we are performing a comprehensive due diligence and risk assessment process for our token sale participants.  

Are you open for institutional / retail investors?

We are open to all institutional and retail investors. Please keep in mind that there are countries on the FATF list that are excluded from our token sale.  

Can I hold my tokens on the Hugs platform?

Hugs does not hold tokens on your behalf. As soon as the token distribution starts, Hugs will send the tokens to a Solana wallet address of your choosing.

When dealing with cryptocurrency and crypto tokens, you are taking full responsibility and custody of your crypto assets. Therefor the best and safest method of storing your assets, is in own custody (on wallets where only you control your private keys) or with a trusted custodial of your choice.

Can't find something? Feel free to contact us!