Mining by reporting hackers who fall for the honeypot is a unique idea, I can see people carrying little Pi versions of this with external battery packs when they use public Wifi like Coffee shops, places that are most likely to be susceptible to a breach, it's going to be interesting for sure.
That is a smart use case. I think if I understood things correctly they miner would be the source for the model evolution. It is a bit vague in some aspects like does it get harder for hacker everytime? what will the hacker get if they we were able to breach the software? and What if the hacker manipulates the software?
I don't think they'd be able to access the Software level, from my understanding it's contained securely within the honeypot. From what i've seen, when a hacker is detected, that IP will be blocked from the network, the signature will be shared with the rest of the devices and you'll be paid a reward for 'mining' that hacker. So essentially any other network with one of their solutions will already know that hackers fingerprint, and block them.