yperliquid, a popular DEX for perpetual contracts, has announced the launch of its native token, $HYPE. According to the Hyper Foundation, the token launching on November 29, 2024, will power the Hyperliquid ecosystem— from allowing user participation in governance and staking to multi-chain transactions.
This launch is a major step toward decentralization of the platform and better incentivization for the users.
Tokenomics and Distribution Strategy
The platform airdrops 31% ($310 million) of the 1 billion-capped supply of the $HYPE token among eligible users from reward points compiled on the platform in an event called 'Genesis'.
The rest of the allocations are as follows; 38.8% to community rewards and emissions, 23.8% to core contributors with a 12-month lock-up period, and 6% to the Hyper Foundation for operational needs.
Interestingly, private investors have not received any tokens, which means Hyperliquid is focused on community-first ownership of the $HYPE token.
Functionality of HYPE in the Ecosystem
The $HYPE token will assume various roles in the Hyperliquid:
1. $HYPE will be a Gas Token and fuel all the transactions on the HyperEVM — its proprietary execution environment.
2. Immediately after the launch, it will be listed on Hyperliquid DEX paired against USDC.
3. The users can now stake $HYPE and get rewarded for it by contributing to the consensus mechanism of Hyperliquid, known as HyperBFT.
The multi-functional token also contributes to Hyperliquid's mission of creating a decentralized, user-driven ecosystem.
Growth of Hyperliquid and Future Plans
Hyperliquid had already established its platform as the top decentralized trading platform before the launch of the token, with over 200,000 users and $1 billion in daily volume across 145 trading pairs.
Moving forward, the platform will continue enhancing its trading functionalities with added spot trading and permissionless pools.
A promise of an attractive roadmap ahead launched with $HYPE will further seal Hyperliquid's position in the Defi space and reward its increasingly large trader community.
