Actually, it sounds like they want you to decrease at 8 points, so that you have 8 "spokes" on the top of the hat. Here's how you do it:
You have 112 sts., divided by 8, gives you 14 stitches. So you will be decreasing once every 14 stitches. To do this, k12, k2tog. (This spans 14 stitches). Repeat. On the next decrease round, it will be k11, k2tog. I'm not 100% sure, but I think you'd place your stitch markers after doing a k2tog, and then on the next decrease round would do the k2tog when you are 2 stitches before a stitch marker. If the stitch markers are confusing, then just use 1 stitch marker to mark the beginning of the round, and count stitches as I described. Every decrease round you'll knit 1 stitch fewer before doing the k2tog.
Hope that helps!