Hyper Foundation Proposes Removing $1B HYPE Tokens From Supply - Unchained

The Hyper Foundation has proposed a validator vote to treat all HYPE tokens in Hyperliquid’s Assistance Fund as permanently burned, effectively removing them from both circulating and total supply

The move targets around 37 million HYPE tokens, valued at around $1 billion, which equates to over 13% of the circulating supply.

This story is an excerpt from the Unchained Daily newsletter.

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The Assistance Fund automatically converts Hyperliquid’s trading fees into HYPE tokens, accumulating them in a system address without a private key, making them already inaccessible without protocol changes.

That means no burn transaction would be required, and instead, a “yes” vote would create binding social consensus to exclude these tokens forever.

The governance vote runs through December 24 and the outcome will be based on a stake-weighted consensus.