Hyper Foundation proposes removing $1 billion worth of HYPE tokens from circulating supply by zeroing out Hyperliquid’s Assistance Fund
Hyper Foundation proposes a vote to permanently remove nearly $1 billion in HYPE tokens from circulating supply by zeroing out the Assistance Fund.Summary
The Hyper Foundation has initiated a proposal asking validators to vote on whether to recognize the HYPE tokens held in Hyperliquid’s Assistance Fund as permanently burned and removed from both circulating and total supply. The Assistance Fund automatically converts trading fees into HYPE tokens, acting as a continuous buyback-and-burn mechanism, but the tokens remain measurable in the supply despite being mathematically irretrievable without a hard fork. Currently, about 37 million HYPE tokens, representing over 13% of the circulating supply, are in this fund. A 'Yes' vote signifies social consensus to never authorize a protocol upgrade to access these tokens, even though no on-chain action is required as the address lacks a private key. Most validators have signaled support for the proposal, which closes on December 21.
(Source：The Block)