Hyperliquid Validators Vote to Exclude Inaccessible HYPE From Supply
The Hyper Foundation proposed a validator vote to officially recognize HYPE tokens held in Hyperliquid’s Assistance Fund system address as permanently inaccessible, effectively treating them as burned and excluding them from circulating and total supply calculations. The Assistance Fund automatically receives HYPE tokens from protocol fees; its system address lacks withdrawal mechanisms, making the funds unrecoverable without a hard fork. USDH stablecoin issuer Native Markets clarified that 50% of USDH’s reserve yield goes to the Fund and, if the vote passes, will also be considered burned. The move aims to clarify and formalize supply metrics for governance, particularly as institutional interest in Hyperliquid rises due to its fee-driven buyback model. Cantor Fitzgerald reports Hyperliquid generated about $874 million in fees YTD (2025), with 99% of fees routed through the Assistance Fund to repurchase HYPE. The proposal distinguishes these tokens as unspendable, aligning reported supply with actual protocol design rather than artificially creating scarcity. Hyperliquid has recorded over $205 billion in monthly perpetuals trading volume and notable DAT treasuries, cementing its position among the top decentralized exchanges.
