The non-profit Hyper Foundation has proposed to recognize the HYPE tokens held in the Assistance Fund as burned and permanently remove them from the total supply. These assets are valued at nearly $1 billion.
The Hyper Foundation is proposing a validator vote to formally recognize the Assistance Fund HYPE as burned, removing the tokens permanently from the circulating and total supply.
For context, the Assistance Fund converts trading fees to HYPE in a fully automated manner as part…
— Hyper Foundation (@HyperFND) December 17, 2025
The Assistance Fund is a mechanism of the Hyperliquid protocol at the L1 execution level. It automatically converts a significant portion of trading fees into HYPE. This process functions as a continuous buyback, creating deflationary pressure.
The fund’s wallet lacks a private key, making it technically impossible to extract funds without a hard fork. However, these coins are still reflected in statistics, distorting the project’s market capitalization data.
The fund holds about 37 million HYPE—over 13% of the current supply of approximately 270 million coins.
If validators support the initiative, blockchain transactions will not be necessary. The decision will take the form of 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 backed the proposal. Voting will conclude on December 21.
At the time of writing, HYPE is trading at $24.17, having decreased by 10% in the past 24 hours.
In November, Hyperliquid announced the launch of a privacy-focused blockchain.
Later, the platform launched custom perpetual contract markets.