What is HYPE?

HYPE is the native cryptocurrency of the Hyperliquid blockchain, a Layer 1 network designed to optimize decentralized trading and high-performance applications. Hyperliquid aims to address the limitations of existing decentralized exchanges (DEXs) by offering an ultra-low-latency trading environment and seamless scalability. HYPE serves as the backbone of the network, enabling staking, governance, and utility within its ecosystem.

How does HYPE work?

HYPE powers the Hyperliquid Layer 1 blockchain by facilitating transactions, paying for gas fees, and securing the network through staking. Hyperliquid employs a unique consensus mechanism that prioritizes speed and efficiency, enabling near-instantaneous transaction finality. HYPE is also integral to governance, allowing token holders to vote on protocol upgrades and changes. Additionally, the token is used within the ecosystem to incentivize liquidity providers and support advanced trading features, positioning Hyperliquid as a leader in decentralized trading solutions.

How many HYPE tokens are in circulation?

HYPE has a total supply cap of 1 billion tokens. During the genesis event, 31% of the total supply, or 310 million tokens, was distributed to eligible users through an airdrop. The remaining tokens are allocated for future emissions, community rewards, and ecosystem development. Approximately 38.888% of the supply is reserved for long-term emissions to incentivize network participation. Another 23.8% is allocated to current and future contributors, with a one-year lock-up period to align incentives with the network’s growth. Additionally, 6% is held in the Hyper Foundation treasury to support operational expenses, while 0.3% is reserved for community grants. Hyperliquid’s decision to allocate no tokens to private investors, centralized exchanges, or market makers emphasizes its commitment to community-driven growth and decentralization.