Hyperliquid Burned Nearly 5% of Total HYPE Supply

The decentralized platform Hyperliquid has burned 49.87 million HYPE tokens – nearly 5% of the maximum supply of 1 billion units. According to network monitoring data, the value of the burned assets reached $3.89 billion at the current rate.

The supply reduction occurs automatically: the protocol converts revenue from fees into constant buybacks from the open market. The platform's total revenue exceeded $1.38 billion, with $63.52 million received in the last 30 days. The mechanism relies on the Aid Fund – a system smart contract without private keys, whose balance was officially recognized as burned in December 2025 by the decision of 85% of the network validators. Between 97% and 99% of the exchange's trading fees are directed there.

In the last 24 hours, the mechanism burned 19,700 HYPE (about $1.59 million) with the protocol's daily fees at $1.69 million.

In addition to standard fees, the architecture uses three additional deflation channels: AQAv2 yield routing, gas burning in HyperEVM, and penalties for developers under HIP-3. Since the buyback is denominated in dollars, the burn rate depends on the market: at a price of 78–80 per token, the buyback volume per dollar of fees decreases.

The deflationary status of the ecosystem depends on whether fee generation can exceed vesting for the team and early participants – about 9.9 million HYPE per month. At the current pace of 19,700 tokens per day, buybacks absorb approximately 591,000 HYPE per month, compensating for only about 6% of unlocks. The net supply in circulation is still growing despite the burning.