{"id":48885,"date":"2025-09-23T12:37:26","date_gmt":"2025-09-23T05:37:26","guid":{"rendered":"https:\/\/hbbgroup.net\/crypto-asset-manager-proposes-slashing-hype-supply-by-45\/"},"modified":"2025-09-23T12:37:26","modified_gmt":"2025-09-23T05:37:26","slug":"crypto-asset-manager-proposes-slashing-hype-supply-by-45","status":"publish","type":"post","link":"https:\/\/hbbgroup.net\/vi\/crypto-asset-manager-proposes-slashing-hype-supply-by-45\/","title":{"rendered":"Crypto asset manager proposes slashing HYPE supply by 45%"},"content":{"rendered":"
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A crypto asset management firm that holds HYPE \u2014 the token behind decentralized derivatives exchange Hyperliquid \u2014\u00a0 has proposed cutting the total supply of HYPE by 45% to make its tokenomics more attractive to investors.<\/p>\n

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In a post<\/a> to X on Monday, DBA Asset Management investment manager Jon Charbonneau outlined three changes to Hyperliquid\u2019s economic model: Revoking authorization for all unminted HYPE tokens for future emissions and community rewards (FECR), burning all HYPE in Hyperliquid\u2019s Assistance Fund (AF), and removing HYPE\u2019s 1 billion supply cap.<\/a><\/p>\n

His proposal was co-authored by pseudonymous crypto researcher Hasu.<\/p>\n<\/div>\n

While the plan would need to be voted on and passed through Hyperliquid\u2019s governance structure, DBA would be a major participant, given that it actively stakes HYPE and holds a material position in the token.\u00a0<\/p>\n

Source: <\/em>Jon Charbonneau<\/em><\/a><\/figcaption><\/figure>\n

The DBA executive said the proposed change would seek to correct the market\u2019s misvaluation of HYPE, which he said is distorted by the fully diluted valuation metric that includes unissued tokens.\u00a0<\/p>\n

\u201cThis is problematic because the market penalizes this excess supply in valuing the protocol, and pre-allocating these tokens may unduly bias future capital allocation decisions,\u201d he said, adding that the change would make HYPE even more appealing to investors and stakers, while preserving the protocol\u2019s ability to fund initiatives through new issuances.<\/p>\n

The proposal \u2014 which would see 421 million HYPE from the future emissions and community rewards category and 21 million from the assistance fund slashed \u2014 comes amid a recent uptick in investor interest in the Hyperliquid ecosystem.<\/p>\n

Within a week of revealing its new US dollar stablecoin, USDH, Hyperliquid opened a vote to decide<\/a> who would issue the stablecoin, drawing interest from Paxos, Frax, Sky, Agora and Native Markets<\/a>, which came out victorious last week.<\/p>\n

Hyperliquid handled $330 billion in trading volume in July<\/a> with a team of 11 people, making it one of the industry\u2019s most efficient platforms.<\/p>\n

Charbonneau noted that USDH would contribute significantly to Hyperliquid\u2019s revenue<\/a> when rolled out.<\/p>\n

Other institutional crypto investors support DBA\u2019s proposal<\/h2>\n

Dragonfly managing partner Haseeb Qureshi agreed with Charbonneau\u2019s take, stating<\/a> that the nearly 50% community allocation is an \u201camorphous slush fund\u201d for Hyperliquid governance members to figure out what to do with at a later date.<\/p>\n

Qureshi said it was fine to spend tokens on growth incentives as long as it is done transparently, but allocating nearly 50% of the total supply \u201cto do whatever with is silly and we should end it.\u201d <\/p>\n

Charbonneau\u2019s proposal met with criticism<\/h2>\n

Crypto pundit Mister Todd described<\/a> the proposal as \u201cabsolutely foolish and a disaster,\u201d stating that future emissions are the most powerful growth tool that Hyperliquid has at hand.<\/p>\n

Related: <\/strong><\/em>Hyperliquid whale withdraws $122M HYPE tokens as Arthur Hayes exits<\/strong><\/em><\/a><\/p>\n

Others suggested<\/a> that Hyperliquid should always have tokens set aside in the event of a fine or sanction from the Department of Justice or similar entity.<\/p>\n

However, Charbonneau countered both claims that the proposal doesn\u2019t reduce the HYPE available in such a scenario; rather, it just changes the accounting of it.\u00a0<\/p>\n

Source: <\/em>Jon Charbonneau<\/em><\/a>
<\/figcaption><\/figure>\n

HYPE cooled off after rallying to a new high<\/h2>\n

It comes as HYPE soared to a new all-time high<\/a> of $59.30 on Thursday, while the rest of the crypto market continues to trend downward and sideways.<\/p>\n