Hyperliquid Proposes 45% Token Supply Reduction Amid Market Retreat

Hyperliquid's native token HYPE has retreated 21% from its September 18 all-time high of $59.30, currently trading at $47.73 amid broader market pressures. The decline comes as traders show caution—derivatives open interest dipped 1.5% despite an 18.6% surge in futures volume.

A seismic governance proposal from DBA's Jon Charbonneau and researcher Hasu could recalibrate the project's trajectory. The plan advocates burning 452 million HYPE tokens (45% of total supply) to align circulating supply with valuation metrics. Such deflationary mechanics historically attract institutional interest during consolidation phases.

Daily spot volume climbed 25% to $897.1 million, suggesting accumulation at support levels. The supply reduction could transform HYPE's market dynamics, mirroring successful tokenomic resets seen in assets like BNB and FTT during previous cycles.