The salty claws hat is a reward obtained upon completion of the 2010 Christmas event. You encounter Salty Claws when catching him in the bucket given by Thorvar Crittersmash. This item can be operated to perform a Dance emote. This emote involves the player dancing in a manner similar to a crab walking sideways, and is unique to the item.
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15 Days of Christmas
During the 15 Days of Christmas in 2013, this item, along with other Christmas-themed equipment, were given the Hybrid style of combat, and stats that scaled with the player's levels. This was so players could use these items in combat to assist in hunting for festive crackers during the event.