Tokenomist data shows the platform will release 9.92 million HYPE tokens, representing 2.66% of total supply.
Hyperliquid Token News
Hyperliquid will release $314 million worth of tokens on Saturday in what marks the perpetuals decentralized exchange's most significant tokenomics event yet. The unlock has sparked calls for clearer communication from the team about how the release will be managed.
Tokenomist data shows the platform will release 9.92 million HYPE tokens, representing 2.66% of total supply. The allocation will be released through a cliff unlock, meaning all tokens become available simultaneously rather than gradually.
The event ignited public discussions among holders, including an open letter from community member Andy urging the team to address concerns before the unlock. HYPE trades at $31, down 23% over the past month.
Andy wrote that the team and airdrop recipients finally being able to sell will cause concern until direct communication happens. He noted the entire market carries trauma from destruction caused by VC-backed projects dumping tokens.
BitMEX co-founder Arthur Hayes issued a warning that the upcoming unlock introduces unavoidable selling pressure for the token. He stated that insider assurances cannot eliminate uncertainty surrounding the release.
Hayes explained that even if the team promises not to sell, nothing holds them to that commitment. He said traders must assume some amount of daily sell pressure will occur following the token unlock.
He pointed to a sharp drop in Hyperliquid's price-to-fully diluted valuation ratio since July as evidence that traders are already discounting the forthcoming dilution risk. The discount will continue unless revenue growth outpaces the increase in supply.
Some community members argue the Hyperliquid team is not obligated to disclose their plans for unlocked tokens. One user said disclosing the allocation amount and timing was sufficient, and the team can decide internally what to do with their tokens.
Another community member criticized the open letter as desperation and borrowed conviction, stating that Hyperliquid's team has definitely earned their tokens compared to other projects. Despite broader crypto market declines, perpetual DEXs maintained consistent daily volumes ranging from $28 billion to $60 billion in November, according to DefiLlama.
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