Hyperliquid has permanently removed 49.87 million HYPE tokens from circulation through revenue-funded buybacks, a supply reduction worth approximately $3.89 billion and equal to 4.99% of the token’s 1 billion maximum supply, according to data from OnchainLens.
The burn is supported by cumulative protocol revenue of more than $1.38 billion, including $63.52 million over the past 30 days. Hyperliquid allocates between 97% and 99% of trading fees toward HYPE purchases. Over the last 24 hours, the platform burned roughly 19,700 HYPE tokens worth $1.59 million, against estimated daily fees of $1.69 million.
The burn mechanism involves the Hyperliquid Assistance Fund, a system smart contract with no private keys. In December 2025, 85% of validators approved recognizing the fund’s holdings as permanently burned. Additional supply reduction mechanisms include AQAv2 yield routing, HyperEVM gas burning, and HIP-3 developer penalties.
However, the report also highlights ongoing supply pressure from scheduled vesting. Approximately 9.9 million HYPE tokens are unlocked monthly for team members and early contributors. At the current daily buyback pace of 19,700 tokens, monthly purchases would remove about 591,000 HYPE, offsetting only roughly 6% of monthly unlocks. That leaves a net increase of about 9.31 million HYPE tokens per month based on unchanged purchase volumes.
Because buybacks are dollar-denominated, HYPE price levels also affect the number of tokens removed, with prices around $78 to $80 reducing purchasing quantities.
