Hyperliquid Proposes 45% Token Supply Burn to Address Valuation Metrics

Hyperliquid's community is weighing a radical overhaul of its HYPE token economics, with a proposal to slash total supply by 45%. crypto strategists Jon Charbonneau and Hasu spearhead the plan, targeting unminted allocations and dormant reserves to rectify supply inflation.

The initiative tackles non-outstanding tokens that distort valuation frameworks—particularly critical as impending token unlocks loom. Current circulation stands at 333.92 million HYPE against 547 million locked in Future Emissions & Community Rewards and Assistance Fund reserves.

The blueprint calls for incinerating 421 million unminted tokens and 31.3 million from the Assistance Fund while abolishing the 1 billion supply cap. Proponents argue this surgical reduction resolves Fully Diluted Valuation discrepancies that have dampened investor appetite, despite Hyperliquid's $49 billion FDV at current prices.