Investment manager DBA Asset Management, led by Jon Charbonneau and crypto researcher Hasu, has proposed a 45% reduction in the total supply of HYPE, the native token of the Hyperliquid decentralized exchange, aiming to revamp its tokenomics for greater economic stability.
The plan, detailed in a September 22, 2025 post on X (formerly Twitter), involves burning 442 million tokens—comprising 421 million unissued tokens reserved for future emissions and 21 million from the protocol's Assistance Fund—and removing the current 1 billion supply cap. Charbonneau argued that pre-allocated tokens distort HYPE's fully diluted valuation, penalizing perceived value, while Hasu emphasized that revoking future reward authorizations could create a more stable economic environment.
Market reaction has been mixed; HYPE's price surged to an all-time high of $59.30 before dropping 22% to $46.08 amid cooling sentiment, compounded by Maelstrom Fund's sale of its entire HYPE holdings due to concerns over $12 billion in token unlocks over the next two years. Supporters like Dragonfly's Haseeb Qureshi backed the cut, calling the large community allocation an amorphous slush fund, but critics like Mister Todd warned it could limit growth flexibility. The proposal awaits a community governance vote, coinciding with Hyperliquid's recent selection of Native Markets for its USDH stablecoin initiative after processing $330 billion in volume in July.
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