$HYPE holders, this is huge: ~$1B tokens locked forever. Will it pump the price or is it just smoke and mirrors?

🚀 Hyperliquid ($HYPE) Makes a Bold Move – ~$1B in Tokens Out of Play!

The Hyper Foundation has initiated a governance vote that, if approved, will formalize around 37 million HYPE tokens (~$1B) from the Assistance Fund as permanently out of circulation.

💥 What’s happening:

The tokens are already on an address without a private key – practically inaccessible.

Once the vote passes, they will be officially recognized as “burned” in the protocol’s supply metrics.

This is not a classic on-chain burn, but the effect on circulating and total supply will be the same.

✅ Pros:

Reduces circulating supply → potentially deflationary impact.

Increases transparency and trust for investors and analysts.

Confirms Hyperliquid’s long-term strategy to protect the value of $HYPE.

⚠️ Cons / Risks:

The outcome depends on the validators’ vote results.

The market might expect a direct technical burn → potential for confusion.

This is not a new mechanism, but a formalization of tokens that are already inaccessible.

💡 Conclusion:
Hyperliquid clearly demonstrates that it is focused on long-term value for $HYPE holders, not short-term dilution. Formalizing ~37 million tokens as out of circulation is a strong signal of a deflationary strategy, protecting holders and increasing the protocol’s transparency.

#hype #CryptoNewss #CryptoMarkets