Hyperliquid governance vote aims to permanently sideline $1B Assistance Fund

The Hyper Foundation proposed a validator vote to formally recognize the HYPE tokens held in the Hyperliquid protocol’s Assistance Fund system address as permanently inaccessible, effectively excluding them from the circulating and total supply for governance purposes. This fund automatically converts trading fees into HYPE tokens, currently holding about $1 billion worth, and was designed without control mechanisms, making the funds irretrievable without a hard fork. While the proposal uses the term “burned,” it clarifies that it does not reduce the existing supply but formalizes how these fee-derived tokens are treated, reducing ambiguity around Hyper’s effective supply, which is relevant amid growing institutional interest. Native Markets noted that yield from its USDH stablecoin, previously routed to the fund, would also be formally recognized as burned if the vote passes. Hyperliquid remains a top perpetual DEX, attracting significant institutional focus on its fee-driven model.

(Source：Cointelegraph)