Crypto asset manager proposes slashing HYPE supply by 45%

A crypto asset manager wants future HYPE emissions and community rewards to be cut, slicing its token supply by 45% in a bid to make HYPE easier to value.

A crypto asset management firm that holds HYPE — the token behind decentralized derivatives exchange Hyperliquid —  has proposed cutting the total supply of HYPE by 45% to make its tokenomics more attractive to investors.

In a post to X on Monday, DBA Asset Management investment manager Jon Charbonneau outlined three changes to Hyperliquid’s economic model: Revoking authorization for all unminted HYPE tokens for future emissions and community rewards (FECR), burning all HYPE in Hyperliquid’s Assistance Fund (AF), and removing HYPE’s 1 billion supply cap.

His proposal was co-authored by pseudonymous crypto researcher Hasu.

While the plan would need to be voted on and passed through Hyperliquid’s governance structure, DBA would be a major participant, given that it actively stakes HYPE and holds a material position in the token. 

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