As competition intensifies in the perpetuals trading sector, investors are starting to feel the pressure of the upcoming HYPE unlocks<\/a> in November.<\/p>\n Hyperliquid\u2019s core contributor unlocks are set to begin on Nov. 30, with a total of 237 million HYPE<\/a>, worth roughly $11 billion at current prices, becoming liquid between Nov. 30, 2025 and Nov. 30, 2027.<\/p>\n While there has been plenty of speculation over how the team would go about exiting their position, or if they plan to do so at all, investors are bracing for impact. BitMEX co-founder Arthur Hayes recently sold all of his HYPE, despite recently calling for the asset to rally more than a hundred-fold over the next three years. <\/p>\n Hayes\u2019 family office fund, Maelstrom, addressed the sale today, reiterating<\/a> that HYPE digital asset treasuries (DATs) and Assistance Fund (AF) buybacks cannot offset the team\u2019s token unlocks, and citing increased competition from the likes of Lighter<\/a> and Aster<\/a>.<\/p>\n Also today, Jon Charbonneau and Hasu publicly posted an article<\/a> on X, proposing a short-term 45% reduction in the HYPE supply while removing the total supply cap.<\/p>\n Charbonneau, of crypto investment firm DBA, and Hasu from Steakhouse Financial collaborated on their article, claiming that Hyperliquid has too much authorized non-outstanding supply, meaning the supply overhang is too large compared to the market capitalization, and puts the token at a disadvantage in terms of market interpretation.<\/p>\n \u201cGiven HYPE\u2019s current supply dynamics, it\u2019s one of the most unfairly penalized tokens on the market today. It stands to benefit heavily from remedying this,\u201d the proposal reads. <\/p>\n Specifically, they propose to remove the maximum supply cap of $1 billion HYPE, revoke authorization for the unminted HYPE set aside for future emissions and community rewards (FECR), and burn all the HYPE that has been repurchased by the AF.<\/p>\n The proposal claims to \u201cincrease legibility\u201d of the protocol\u2019s economics for both current community members and future investors.<\/p>\n The article encountered initial pushback, primarily from those who interpreted the proposal as eliminating future community incentives. Charbonneau was quick to point out<\/a> that the design doesn\u2019t necessarily reduce community incentives but simply takes them off the books in the short term to \u201cmake them more effective.\u201d<\/p>\nTokenomics Proposal <\/h2>\n
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