HYPE Community Votes to Permanently Remove Tokens from Circulation

ser_we_are_early · 2026-01-05T14:57:29+00:00

The Hyper Foundation has removed HYPE tokens from circulation after validator voting showed 85% support. This decision reduces the total supply, supports decentralized governance, and aims for a healthier ecosystem by creating a predictable supply for investors.

ser_we_are_early

2026-01-05 14:57:29

Abstract generation in progress

The Hyper Foundation has confirmed a major governance milestone: HYPE tokens previously held in the aid fund wallet have been irrevocably taken out of circulation following successful validator voting. The decision reflects substantial community consensus, with 85% voting in favor, while 7% opposed and 8% chose to abstain from the decision.

What This Means for HYPE’s Supply

The tokens designated for removal will no longer exist within the total supply, representing a meaningful contraction of the HYPE token ecosystem. As of the latest data, HYPE maintains a total supply of 962,274,029 tokens, with 238,385,316 currently in circulation. By permanently eliminating the aid fund allocation, the Hyper Foundation is effectively reducing future supply pressure and rebalancing the token distribution model.

Governance Process and Community Support

The Hyper Foundation’s earlier proposal suggested that tokens sitting in the aid fund should be classified as destroyed rather than held in reserve. The validator governance mechanism allowed stakeholders to weigh in directly, demonstrating the project’s commitment to decentralized decision-making. The overwhelming majority support (85%) underscores community alignment with this deflationary approach.

Long-term Implications

This permanent removal strategy signals Hyper’s intent to manage token supply actively and maintain ecosystem health through transparent governance. By taking these tokens out of circulation entirely, rather than keeping them in reserve, the foundation is creating a more predictable supply narrative for investors and participants tracking the HYPE ecosystem.

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