Hyper Foundation seeks to permanently eliminate $1 billion worth of HYPE tokens Translation: Hyper Foundation seeks to permanently eliminate $1 billion worth of HYPE tokens.

The Hyper Foundation has proposed to classify the HYPE tokens held in the Assistance Fund as burned and permanently remove them from the total supply. The value of these assets approaches $1 billion.

The Assistance Fund operates as a mechanism within the Hyperliquid protocol at the L1 execution level. It automatically converts a significant portion of trading fees into HYPE, functioning as a continuous buyback and creating deflationary pressure.

The fund’s wallet lacks a private key, making it technically impossible to access the funds without a hard fork. Nevertheless, these coins still appear in statistics, distorting the project’s market capitalization data.

Approximately 37 million HYPE, which is over 13% of the current supply of around 270 million coins, are in the fund.

If the validators back the initiative, blockchain transactions will not be necessary. The decision will take shape as a «social consensus»: the community will agree to block any protocol updates that could grant access to these funds.

The majority of validators have already supported the proposal. Voting will conclude on December 21.

At the time of writing, HYPE is trading at $24.17, having decreased by 10% over the past day.

In November, Hyperliquid announced the launch of a privacy-focused blockchain.

Subsequently, the platform introduced user markets for perpetual contracts.