Hyperliquid Proposes 45% HYPE Token Supply Cut Amid $12 Billion Unlock Fears

Hyperliquid, a decentralized exchange platform, is considering a radical proposal to slash its HYPE token supply by 45%. The plan, introduced by DBA investment manager Jon Charbonneau and researcher Hasu, aims to address valuation distortions and stabilize the token's market position.

The proposal calls for burning over 450 million tokens from the Future Emissions and Community Rewards fund and the Assistance Fund. This move comes as the crypto community braces for a potential $12 billion HYPE token unlock, which has sparked widespread concern.

"Given HYPE’s current supply dynamics, it’s one of the most unfairly penalized tokens on the market today," the proponents argue. The reduction WOULD allow investors to better assess Hyperliquid’s fundamentals and make informed decisions.