The HYPE token: supply, airdrop and buybacks
HYPE is Hyperliquid's native token. It is used for staking, gas on HyperEVM and fee discounts. Its supply is capped at 1 billion; 31% was airdropped to users on 29 November 2024, and trading fees are used to buy HYPE through the Assistance Fund.
What HYPE is used for
- Staking: HYPE secures the Hyperliquid L1 through proof of stake (see staking HYPE).
- Gas on HyperEVM: HYPE is the native gas token of HyperEVM.
- Fee discounts: staking HYPE cuts your trading fees by 5% to 40% (see fees).
- Market deployment: HIP-3 deployers must stake 500,000 HYPE (see HIP-3).
Supply and allocation
HYPE has a capped total supply of 1 billion. The allocation announced before launch was:
| Allocation | Share | Notes |
|---|---|---|
| Genesis distribution (airdrop) | 31.0% (310M) | Fully unlocked at launch |
| Future emissions and community rewards | About 38.9% | Includes staking rewards |
| Core contributors | 23.8% (238M) | One-year lockup after genesis, then unlocking |
| Hyper Foundation budget | 6.0% (60M) | Operations |
| Other | Under 0.4% | Small community allocations |
Hyperliquid stressed that there was no allocation for private investors, centralised exchanges or market makers (The Block, 2024). Core contributor tokens began unlocking from late November 2025, after the one-year lockup.
The November 2024 airdrop
HYPE launched in a "genesis event" on 29 November 2024. 310 million HYPE went to users who had earned points by trading on Hyperliquid, with no lockup. It was one of the most discussed airdrops of the cycle because so much of the supply went straight to users. There is no confirmed date for any further airdrop; treat any site claiming a "season 2 claim" with suspicion.
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Open HyperliquidAssistance Fund buybacks and burns
Hyperliquid routes trading fees to the community: HLP, deployers and the Assistance Fund. The Assistance Fund automatically converts fees into HYPE. Analysts at Cantor Fitzgerald have estimated that about 99% of protocol fees go through it (cited by Cointelegraph, December 2025).
In December 2025 the Hyper Foundation asked validators to recognise the HYPE held at the Assistance Fund system address as permanently inaccessible and to remove it from circulating and total supply. Reports at the time put the balance at about 37 million HYPE, and the proposal passed with about 85% of validator stake in favour (Forklog; Tangem). The docs now state that "HYPE in the assistance fund is burned."
Buybacks have continued. Allium data cited by the Financial Times put Hyperliquid's 2026 buybacks at about $370M by late August 2026, the biggest share of all crypto token buybacks that year (reported by Forklog, 31 August 2026).
What changes the supply over time
- Adds to circulating supply: staking rewards from the emissions allocation, contributor unlocks, Foundation spending.
- Removes from supply: Assistance Fund buybacks, since HYPE held there is treated as burned.
Whether the net effect is inflationary or deflationary depends on trading volume, which drives fees, and on unlock and emission volumes. Nobody can reliably predict that, and we do not make price predictions.
Risks of holding HYPE
- HYPE is volatile. Its price has fallen sharply around incidents such as the JELLYJELLY episode in March 2025.
- Its value depends on Hyperliquid's trading volume continuing. Competition from other perp DEXs and exchanges is intense (see best perp DEX).
- Regulation could limit who can use the platform (see is Hyperliquid legal).
Frequently asked questions
What is the total supply of HYPE?
Total supply is capped at 1 billion HYPE. HYPE held by the Assistance Fund is treated as burned, so the effective supply is lower.
When was the HYPE airdrop?
On 29 November 2024. 31% of the supply (310M HYPE) went to users who had earned points, fully unlocked.
Did VCs get HYPE?
According to Hyperliquid there was no allocation for private investors, centralised exchanges or market makers.