Hyper Foundation proposes that validators vote to confirm the permanent burn of HYPE from the Aid Fund and remove it from circulation, total supply.

The proposal emphasizes that these tokens are located at a system address without a private key, so mathematically it cannot be restored without a hard fork; voting yes is a binding consensus that no upgrades will be allowed to access this address.

MAIN CONTENT

  • Validators are proposed to vote to confirm the burning of HYPE by the Aid Fund.

  • Tokens at the system address do not have a private key, no need for on-chain operations.

  • Aid fund holds 37,114 million HYPE, ~1.02 billion USD, ~13.7% of circulating supply.

Proposal to burn HYPE by the Aid Fund: confirm and remove from total supply

Hyper Foundation calls on validators to vote to officially recognize the burning of HYPE by the Aid Fund and permanently remove it from circulation and total supply.

According to the announcement on X dated 17/12, the Aid Fund automatically converts transaction fees into HYPE during the execution of L1. This mechanism creates a HYPE balance located at the Aid Fund's system address, described similarly to a zero address.

The core point is that this system address will never hold a private key to control the funds. Therefore, unless a hard fork occurs, these amounts are considered mathematically unrecoverable. A yes vote means the validator agrees that these tokens have been burned.

No need for on-chain operations; voting is a binding social consensus

Since the token at the system address does not have a private key, the proposal states that no on-chain actions are required to carry out the burn.

The voting is described as a binding social consensus: no future protocol upgrades will be authorized to access this address. In other words, a yes result does not transfer tokens anywhere but instead establishes a long-term commitment not to attempt to unlock them via upgrades.

On-chain data shows that the Hyperliquid aid fund is holding 37,114 million HYPE, worth approximately 1.02 billion USD, equivalent to about 13.7% of the current circulating supply.

Source: https://tintucbitcoin.com/hyper-foundation-de-xuat-dot-quy-hype/

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