Crypto Asset Manager DBA Proposes 45% HYPE Supply Cut to Revamp Hyperliquid Tokenomics

Crypto asset manager DBA has proposed cutting the total supply of HYPE by 45% in a bid to overhaul the tokenomics of decentralized derivatives exchange ￰1￱ Takeaways: DBA has proposed a 45% reduction in HYPE’s total supply to improve tokenomics and investor ￰2￱ plan includes burning 442 million tokens and removing HYPE’s 1 billion supply ￰3￱ proposal has sparked debate, with supporters citing clarity and critics warning of reduced growth ￰4￱ firm, which holds and actively stakes HYPE, says the move would boost the token’s appeal to investors by removing market uncertainty around unused ￰5￱ investment manager Jon Charbonneau published the proposal on X , co-authored with crypto researcher ￰6￱ Proposal Targets 442M HYPE Burn, Lifts 1B Cap The plan includes three key measures: revoking authorization for 421 million unminted tokens reserved for future emissions and community rewards, burning 21 million HYPE from the protocol’s Assistance Fund, and removing the token’s current 1 billion ￰7￱ said the fully diluted valuation of HYPE is distorted by token allocations that may never enter circulation, which he believes penalizes the protocol’s perceived value.

“Pre-allocating these tokens may unduly bias future capital allocation decisions,” he ￰8￱ proposal comes as interest in the Hyperliquid ecosystem ￰9￱ week, the exchange launched a governance vote to select the issuer of its new USDH stablecoin, with Native Markets securing the role over rivals including Paxos and ￰10￱ processed $330 billion in volume in July with just 11 team ￰11￱ managing partner Haseeb Qureshi backed the proposal, calling the nearly 50% community allocation an “amorphous slush fund.” We propose several changes to Hyperliquid’s economic model These are strictly positive modifications that more protocols will embrace Hyperliquid ￰0￱ ￰12￱ — Jon Charbonneau (@jon_charb) September 22, 2025 He said growth incentives are valid but must be distributed transparently, not left to undefined governance decisions.

Critics, however, say the proposal could limit the platform’s ￰13￱ commentator Mister Todd called the idea “foolish,” arguing that future emissions are Hyperliquid’s most powerful tool for ￰14￱ warned against reducing reserves that could be needed in case of legal or regulatory ￰15￱ pushed back, saying the proposal doesn’t reduce available HYPE in emergencies — it only changes how the tokens are accounted ￰16￱ debate coincides with sharp market ￰17￱ recently surged to an all-time high of $59.30 before dropping 22% to $46.08 as market sentiment ￰18￱ Fund, led by Arthur Hayes, sold its entire HYPE holdings , citing concerns over $12 billion worth of token unlocks expected over the next two ￰19￱ proposal will need to pass through Hyperliquid’s governance process before any changes take ￰20￱ Markets Secures USDH Stablecoin Mandate on Hyperliquid Hyperliquid has concluded its governance vote for the USDH stablecoin, awarding the mandate to Native Markets after a closely watched process that drew weeks of community debate and rival ￰21￱ USDH proposals explained here: ￰22￱ — Galaxy Research (@glxyresearch) September 11, 2025 USDH, described by Hyperliquid as a “Hyperliquid-first, compliant, and natively minted” dollar-backed token, is intended to reduce the platform’s dependence on USDC and strengthen its spot ￰23￱ on the decentralized exchange voted in favor of Native Markets, a relatively new player backed by Stripe’s Bridge subsidiary, over established contenders including Paxos and ￰24￱ outcome followed a string of proposals offering aggressive revenue-sharing terms to win validator support, underscoring the scale of incentives attached to controlling USDH.