| HYPE Token | |
|---|---|
| Type | entity |
| Created | Thu Apr 16 2026 00:00:00 GMT+0000 (Coordinated Universal Time) |
| Updated | Thu Apr 16 2026 00:00:00 GMT+0000 (Coordinated Universal Time) |
| Tags | token, tokenomics, staking, governance |
| Sources |
raw/inbox/hyperliquid-official-docs,
raw/inbox/jeff-yan
|
| Related | hyperliquid, staking, fee-structure, hip-1 |
HYPE Token
HYPE is the native token of Hyperliquid. It serves multiple functions across the protocol.
Utility
- Network security: Staked to validators to secure the chain via delegated proof of stake
- Gas payments: Used to pay network transaction costs
- Trading fee discounts: Staking HYPE unlocks tiered fee reductions (5%–40%)
- HIP-1 deployment gas: Token deployments are paid in HYPE via Dutch auction
- HIP-3 staking: Builder-deployed perps require 500,000 HYPE stake
Staking Tiers & Fee Discounts
| Tier | HYPE Staked | Discount |
|---|---|---|
| Wood | >10 | 5% |
| Bronze | >100 | 10% |
| Silver | >1,000 | 15% |
| Gold | >10,000 | 20% |
| Platinum | >100,000 | 30% |
| Diamond | >500,000 | 40% |
Token Allocation (November 2024 Launch)
| Category | Share |
|---|---|
| Users (airdrop) | 31% |
| Community rewards | 38.88% |
| Core contributors | 23.8% |
| Foundation | 6% |
| Other grants | remainder |
The large user allocation was made possible by the absence of VC investors demanding priority distribution. HYPE is not listed on centralized exchanges by choice — Jeff Yan described this as a “laser focus” on core development, trusting that good technology would be listed organically.
In July 2025, Nasdaq-listed Sonnet BioTherapeutics announced an $888M entity (Hyperliquid Strategies Inc.) focused on holding HYPE tokens.
Buyback Mechanism
Over $1B in annualized fees are directed toward programmatic HYPE buybacks. The assistance fund converts trading fees to HYPE through automated execution, then burns the tokens. This creates a deflationary pressure on supply.
Staking Economics
- Yield formula follows Ethereum’s model: reward rate inversely proportional to sqrt(total staked)
- At 400M HYPE staked: ~2.37% annual yield
- Rewards sourced from future emissions reserve
- Rewards compound automatically (redelegated to staked validator)
- Accrual: every minute; distribution: daily
See also: Staking, Fee Structure, Validators