Hyper Foundation Executes 37.5M HYPE Burn After 85% Approval

• 85% validator vote confirms Assistance Fund HYPE is permanently removed from supply.
• Burned tokens reduces total supply and lowers fully diluted valuation metrics for markets.
• Governance vote closes uncertainty around Assistance Fund HYPE token classification.

The Hyper Foundation assured that the HYPE tokens within the Assistance Fund system address are burned forever and those tokens shall never enter into circulation. The move came after a stake-weighted validator vote that endorsed the balance as burnt and removed it from circulating and total supply metrics.

The foundation stated that the tokens sit at address 0xfefefefefefefefefefefefefefefefefefefefe. The address has no private key, which makes the assets inaccessible under current protocol conditions. The confirmation establishes their status through governance rather than technical assumption.

Validator Vote Confirms Permanent HYPE Supply Reduction

According to the report, 85% of validators who supported staking agreed that the burned token should be recognized. Roughly 7 percent voted against the proposal, and about 8% abstained. The result displayed wide participation over the validator set.

The tokens were taken from the Assistance Fund associated with Hyperliquid’s layer-1 perpetual futures blockchain. Over time the fund converts a small percentage of its spot trading fees to HYPE. Those tokens were subsequently dumped to the system address without violating any rules of the chain.

The governance vote was necessary to plug accounting treatment into on-chain reality, the foundation said. In a subsequent revision, their tokens had already been out of grasp, but the classification was pending. The vote established a binding social consensus that precludes the possibility of future reinterpretation.

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The proposal was submitted on Dec 17 and requested that validators burn the entire Assistance Fund HYPE from the supply. Validators had until Dec. 24 to vote. Token holders could signal their viewpoint by delegating stake to like-minded validators.

Community Response Supports Platform’s Supply Clarity

The community response was generally positive after the confirmation was made. Some replies on X referred to the vote as a clear message about supply discipline. Supporters claimed the decision has helped build faith in HYPE’s tokenomics structure.

With the vote tallied, there is now to be less HYPE, with the initial supply being lowered from 1 billion tokens. The move also reduces the fully diluted valuation. The foundation said the change will tighten circulating availability without the need for a network fork.

Earlier this month, the platform said the intention was to eliminate any doubt over the total balance of the Assistance Fund. It emphasized that governance was the right way to resolve the problem. It cast the move as a step within a larger push to enhance supply transparency.

The foundation also said that the confirmation settles any lingering questions around the Assistance Fund tokens. Extending their place in the universe through validator approval sets a very clear precedent for the network. All future supply issues can now be rectified the same way.

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