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14h ago

Hyperliquid Validators Weigh Treating Assistance Fund HYPE as Permanently Burned

Cantor Fitzgerald’s bullish fee-based model makes the supply ruling a sharper test of Hyperliquid’s valuation case.

Cantor turns bullish on Hyperliquid, sees 'a path for HYPE eclipsing $200'
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Hyperliquid proposes to burn 1B HYPE: Is supply shock incoming?
Hyper foundation proposes burning all hype in its hyperliquid assistance fund

Overview

  • Hyper Foundation’s Dec. 17 proposal asks validators to recognize Assistance Fund holdings as burned through a stake-weighted vote now in progress.
  • Validators must signal by Dec. 21 at 04:00 UTC, with final results determined Dec. 24 at 04:00 UTC based on delegated stake.
  • Roughly 37 million HYPE (over 10% of circulating supply, about $1 billion) would be excluded from circulating and total supply if approved.
  • The tokens already sit in a system address with no private key, so approval would formalize a social commitment with no on-chain transfer and bar future upgrades to access the funds.
  • Markets showed a modest uptick after the proposal as HYPE rose about 2% and futures open interest climbed near 3% to around $1.52 billion, while a new Cantor report highlights a design that recycles about 99% of fees into buybacks and models multi‑billion annual fees despite incentive-driven competition.