Hyperliquid Proposes Permanent HYPE Burn to Boost Token Value
The Hyper Foundation has put forward a governance proposal to permanently remove 37 million HYPE tokens from circulation, a move aimed at reducing supply and bolstering the token's market value. Validators must cast their votes by December 24 to decide the proposal's fate.
Tokens accumulated in the Hyperliquid Assistance Fund—mathematically irretrievable due to lack of private key access—would be formally recognized as burned. This action would eliminate over 10% of HYPE's circulating supply, reinforcing the Foundation's strategy to enhance scarcity-driven value.
The Assistance Fund automatically converts trading fees into HYPE tokens, which are held in a non-recoverable system address. By codifying these tokens as burned, the protocol seeks to amplify market confidence through transparent supply reduction.
