The developers of the decentralized exchange Hyperliquid have announced the launch of a staking mechanism for their native token, HYPE, on the mainnet.
Staking is now live on mainnet.
Staking is an important milestone for Hyperliquid because it allows the diverse community of HYPE stakers to collectively secure the network. Like other proof of stake networks, new blocks on Hyperliquid are proposed by validators in proportion to… pic.twitter.com/J8uECmHGwK
— Hyper Foundation (@HyperFND) December 30, 2024
“As in other Proof-of-Stake networks, new blocks in Hyperliquid are proposed by validators in proportion to the amount of HYPE delegated to them. Staking is a significant responsibility for the Hyperliquid community,” the team stated in a message.
According to the platform, over 330 million HYPE (more than $9 billion at current prices) is staked on the Hyperliquid mainnet.
The locked coins are available for staking, but the rewards generated for such tokens will also be locked.
Later, the developers will introduce a delegation program to “support the most productive validators and foster network decentralization.”
At the time of writing, HYPE is trading at $27.5. Since its launch on November 29, the token’s price has increased nearly sevenfold. In the first five days of trading, the token tripled in value.
According to DeFi Llama, the project ranks ninth in terms of TVL with a figure of $2.35 billion.
The airdrop conducted by Hyperliquid to mark the token’s launch was one of the largest in the industry’s history. The team distributed about 31% of the total supply among community participants. At the peak of HYPE’s price, these tokens were valued at $10.8 billion.
In December, users on X suspected North Korean hackers of preparing to breach Hyperliquid.