Instead of having the players hunting him down, wich leads to obvious abuses, only NPC bounty hunters should do the killing of the hunt.
Each time the hunted enter a random map or a city map, there should be a 5%, 6%, X% chance a random team of bounty hunters (leather jacket/armor/PA...) to attack.
If the people that see the Hunted recognize him, they could snitch on him ("tag" him with a new mouse button), thus increasing his chance of being attacked by the bounty hunters for Y time.
If the hunted is killed during that Y time, the snitchs can partage between themselves a third of the bounty money. (they need to go check by the sherif of course)
The Hunted wake up naked in the hub jail. He will stay there until someone (a friend, an alt, his hub bank account) pay his way out, which is a half of the bounty money.
This way, the hunted has no interest by having his friends snitching on him and having him killed, since at the best they get one third of the money, and he will have to pay one half, they would be at a loss of 20%.
As long as a bounty is on his head (let's say a week), the Hunted will have to avoid going in town and meeting/fighting other non-trusted people.
Of course the bounty hunters boobytraped their weapon/ammo (maybe even their xp?), so they don't drop any, so there is no use to trap them.
As a treat, I also would add the suicide bomber npcbounty hunter to the bounty hunter teams (if he kills the hunted, his npc family get the money)
Do you guys see any flaws?
I mean despite the fact that the people with a lots of money could abuse from it, like in real life?