DBA Proposes 45% HYPE Supply Cut to Overhaul Hyperliquid Tokenomics

Crypto asset manager DBA has put forward a controversial proposal to slash the total supply of Hyperliquid's HYPE token by 45%. The plan involves burning 442 million tokens and eliminating the project's 1 billion supply cap—a move aimed at addressing market concerns about undistributed allocations.

The proposal, co-authored by DBA investment manager Jon Charbonneau and researcher Hasu, argues that current tokenomics create artificial downward pressure on valuation. "Pre-allocating these tokens may unduly bias future capital allocation decisions," Charbonneau noted, suggesting the changes WOULD improve price discovery for actively traded tokens.

Market observers remain divided. Proponents view the supply reduction as necessary to clarify HYPE's long-term value proposition, while critics warn it could constrain the decentralized exchange's flexibility in future incentive programs.