diff --git a/pkg/transport/transport.go b/pkg/transport/transport.go
index c69d785..0ad8d31 100644
--- a/pkg/transport/transport.go
+++ b/pkg/transport/transport.go
@@ -577,8 +577,11 @@ func (t *Transport) RequestPath(destinationHash []byte, onInterface string, tag
 		pathRequestData = append(destinationHash, tag...)
 	}
 
-	destHashFull := sha256.Sum256([]byte("rnstransport.path.request"))
-	pathRequestDestHash := destHashFull[:common.SIZE_16]
+	pathRequestName := "rnstransport.path.request"
+	nameHashFull := sha256.Sum256([]byte(pathRequestName))
+	nameHash10 := nameHashFull[:10]
+	finalHashFull := sha256.Sum256(nameHash10)
+	pathRequestDestHash := finalHashFull[:16]
 
 	pkt := packet.NewPacket(
 		packet.DestinationPlain,
@@ -586,11 +589,12 @@ func (t *Transport) RequestPath(destinationHash []byte, onInterface string, tag
 		0x00,
 		0x00,
 		packet.PropagationBroadcast,
-		0x01,
-		pathRequestDestHash,
+		0x00, // Header Type 1
+		nil,
 		false,
 		0x00,
 	)
+	pkt.DestinationHash = pathRequestDestHash
 
 	if err := pkt.Pack(); err != nil {
 		return fmt.Errorf("failed to pack path request: %w", err)
@@ -1110,16 +1114,15 @@ func (t *Transport) handleAnnouncePacket(data []byte, iface common.NetworkInterf
 	// Register the path from this announce
 	// The destination is reachable via the interface that received this announce
 	if iface != nil {
-		// Use unlocked version since we may be called in a locked context
 		t.mutex.Lock()
-		t.updatePathUnlocked(destinationHash, nil, iface.GetName(), hopCount)
+		t.updatePathUnlocked(destinationHash, nil, iface.GetName(), hopCount+1)
 		t.mutex.Unlock()
-		debug.Log(debug.DEBUG_INFO, "Registered path", "hash", fmt.Sprintf("%x", destinationHash), "interface", iface.GetName(), "hops", hopCount)
+		debug.Log(debug.DEBUG_INFO, "Registered path", "hash", fmt.Sprintf("%x", destinationHash), "interface", iface.GetName(), "hops", hopCount+1)
 	}
 
 	// Notify handlers first, regardless of forwarding limits
 	debug.Log(debug.DEBUG_INFO, "Notifying announce handlers", "destHash", fmt.Sprintf("%x", destinationHash), "appDataLen", len(appData))
-	t.notifyAnnounceHandlers(destinationHash, id, appData, hopCount)
+	t.notifyAnnounceHandlers(destinationHash, id, appData, hopCount+1)
 	debug.Log(debug.DEBUG_INFO, "Announce handlers notified")
 
 	// Don't forward if max hops reached
@@ -1376,7 +1379,7 @@ func (t *Transport) InitializePathRequestHandler() error {
 		return errors.New("transport identity not initialized")
 	}
 
-	pathRequestDest, err := destination.New(t.transportIdentity, destination.IN, destination.PLAIN, "rnstransport", t, "path", "request")
+	pathRequestDest, err := destination.New(nil, destination.IN, destination.PLAIN, "rnstransport", t, "path", "request")
 	if err != nil {
 		return fmt.Errorf("failed to create path request destination: %w", err)
 	}
@@ -1692,6 +1695,14 @@ func (l *Link) HandleResource(resource interface{}) bool {
 	}
 }
 
+// SetIdentity sets the identity for the Transport.
+func (t *Transport) SetIdentity(id *identity.Identity) {
+	t.mutex.Lock()
+	defer t.mutex.Unlock()
+	t.transportIdentity = id
+}
+
+// Start initializes the Transport.
 func (t *Transport) Start() error {
 	t.mutex.Lock()
 	defer t.mutex.Unlock()
diff --git a/pkg/transport/transport_test.go b/pkg/transport/transport_test.go
index aaf9382..232246b 100644
--- a/pkg/transport/transport_test.go
+++ b/pkg/transport/transport_test.go
@@ -3,8 +3,12 @@ package transport
 import (
 	"bytes"
 	"testing"
+	"time"
 
 	"git.quad4.io/Networks/Reticulum-Go/pkg/common"
+	"git.quad4.io/Networks/Reticulum-Go/pkg/destination"
+	"git.quad4.io/Networks/Reticulum-Go/pkg/identity"
+	"git.quad4.io/Networks/Reticulum-Go/pkg/packet"
 )
 
 type mockInterface struct {
@@ -118,3 +122,68 @@ func TestTransportStatus(t *testing.T) {
 		t.Error("Path should be responsive again")
 	}
 }
+
+func TestAnnounceHopCount(t *testing.T) {
+	config := common.DefaultConfig()
+	tr := NewTransport(config)
+	defer tr.Close()
+
+	iface := &mockInterface{}
+	iface.Name = "wasm0"
+	iface.Enabled = true
+	_ = tr.RegisterInterface("wasm0", iface)
+
+	// Create an identity for the announce
+	id, _ := identity.New()
+
+	// Create a destination to get a valid hash for this identity
+	// NewAnnouncePacket uses "reticulum-go.node" by default
+	dest, _ := destination.New(id, destination.IN, destination.SINGLE, "reticulum-go.node", tr)
+	destHash := dest.GetHash()
+
+	// Create a raw announce packet manually to control hop count
+	// Header(2) + DestHash(16) + Context(1) + Payload...
+	// Header: 0x21 (Announce, Header Type 1, Broadcast, Destination Type Single)
+	// Hop count: 0
+	raw := make([]byte, 2+16+1+148) // header + dest + context + min_announce_payload
+	raw[0] = 0x21
+	raw[1] = 0 // Initial hop count
+	copy(raw[2:18], destHash)
+	raw[18] = 0 // context
+
+	// Announce payload: pubKey(64) + nameHash(10) + randomHash(10) + signature(64)
+	payload := raw[19:]
+	copy(payload[0:64], id.GetPublicKey())
+	// Name hash, random hash, signature - filling with dummy data but valid length
+	// Normally we would sign it properly, but handleAnnouncePacket validates it.
+	// Actually, handleAnnouncePacket WILL fail if signature is invalid.
+	// Use NewAnnouncePacket to get a valid signed packet
+	transportID := make([]byte, 16)
+	annPkt, err := packet.NewAnnouncePacket(destHash, id, []byte("test"), transportID)
+	if err != nil {
+		t.Fatalf("NewAnnouncePacket failed: %v", err)
+	}
+	annRaw, err := annPkt.Serialize()
+	if err != nil {
+		t.Fatalf("Serialize failed: %v", err)
+	}
+
+	// Override hop count to 0 to simulate neighbor
+	annRaw[1] = 0
+
+	// Handle the packet
+	tr.HandlePacket(annRaw, iface)
+
+	// Wait a bit for the async processing
+	time.Sleep(100 * time.Millisecond)
+
+	// Check stored hops
+	if !tr.HasPath(destHash) {
+		t.Fatal("Path not registered from announce")
+	}
+
+	hops := tr.HopsTo(destHash)
+	if hops != 1 {
+		t.Errorf("Expected 1 hop for neighbor (received 0), got %d", hops)
+	}
+}