Hyperliquid Proposes Burning 37M HYPE Tokens to Cut Supply by 13%
Hyperliquid's foundation has put forward a governance proposal to burn 37 million HYPE tokens, nearly 13% of its circulating supply. Validators are set to vote on the measure by December 24, with the decision hinging on a stake-weighted consensus.
The proposal targets tokens held in the platform's Assistance Fund, a layer-1 execution system where trading fees are automatically converted into HYPE and locked in a dedicated address. Market reaction was immediate, with HYPE gaining 2% following the announcement—a tentative sign of approval from traders after months of price declines.
This isn't a temporary market intervention but a structural adjustment, according to the foundation. The move aims to formalize the handling of otherwise unusable tokens while addressing waning investor confidence. All eyes now turn to validator votes, which will determine whether Hyperliquid takes this deflationary step.
