A robust economic engine for HYPE token designed to synergize user incentives and network growth by combining three interconnected mechanisms:
Hyperliquid
hype$47.62
+0.19%
24h Price Range
$47.16
$48.42
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A robust economic engine for HYPE token designed to synergize user incentives and network growth by combining three interconnected mechanisms:
This sub-VCM represents the accrual of trading fee discounts as the stake of the user grows; this discount is only obtainable through staking HYPE. There exist six tiers of discount, namely:
If a validator wishes to trade from a distinct account, the validator and spot (trading) accounts may be linked, in which case the discount is transferred.
This sub-VCM represents the income from fee sharing by referred users. Once a user is onboarded with a referral code, his first $1B in volume will be subjected to transfer of a portion of fees he pays to the provider of the referral code. The particular portion depends on the 14-day rolling weighted volume averages of both users and their stake-based discounts.
The discounts are described in the Stake-Based Discount sub-VCM; the volume-based VIP tiers are as such:
If the referrer’s VIP tier is lower than the user’s, he is accorded no cashflow; otherwise, the portion of fees retained is given by the VIP tier of the referred user:
In addition, the portion is linearly impacted by the difference in stake-based discounts of the referrer and the referred user.
This sub-VCM represents the possibility of delegation of stake to an active validator in order to share the rewards he is accorded. The reward is shared proportionally to the contribution of the user less the fee set by the validator. The fee may not be increased after it is set initially in order to prevent validators taking advantage of careless delegators.
This sub-VCM represents playing the role of a HyperEVM validator and all the benefits it entails. Once a user accrues at least 10,000 HYPE of self-stake, he becomes eligible to enter the active set, which is composed of the top 21 validators by stake, at which point he can participate in securing the consensus and deriving rewards according to a total stake rate-dependent reward rate.
Importantly, if the user runs at least two nodes with at least 95% uptime, even if those nodes are not in the active set, he can apply to receive a delegation of HYPE tokens from the Hyperliquid Foundation. This is a measure developed in order to help bootstrap reliable validators with smaller capital capabilities into the active set and, in general, reward the same reliable validators in a way aligned with their network role.
This sub-VCM represents both the role of HYPE as the native token of the HyperEVM and the deflationary appreciation of all HYPE in the circulation due to burning of base fees as stipulated by EIP-1559 and creation of artificial upwards pressure by buying HYPE back.