Hyperliquid

HYPE has the same fee structure as Ethereum with EIP1559, meaning base fees (on HyperEVM) are burned. This creates an indirect cash flow for all HYPE holders in the form of continuous deflation.

To activate the majority of HYPE utility functions, HYPE lock-up or staking is required.

The lockup duration is variable (e.g., a validator's minimum self-stake is locked for a year). In any case, staking HYPE involves a seven-day unstaking queue, which places a lower bound on the lockup duration.

The risk varies as well. A validator's stake can be slashed. Note that automatic slashing has not yet been implemented. Currently, the only penalty is temporary exclusion from the active set, which is decided by validator voting.

Validators that successfully run at least two non-validator nodes with 95% uptime are eligible to apply for the Delegation Program. If their application is accepted, the Hyper Foundation delegates additional stake to them.

Represents validator's consensus participation

All validators in the active set receive rewards continuously. The reward rate is inversely proportional to the square root of the total amount of HYPE staked, and it is expressed as an expected APY.

Staking HYPE tokens gives the staker a trading fee discount based on their staking tier, which is determined by the amount staked.

This discount can be transferred to a different account, called a "spot account" in the documentation, through the linking process.

This makes it possible to trade from an account that is distinct from the staking/validator account.

It represents that users must first trade to receive a trading fee discount.

Any user that has done at least $10,000 in volume can create a referral code that gives a 4% fee discount to the receiver (active for his first $25M in volume).

When a user joins with a referral code, the creator of the code receives a portion of the referred user's fees for the first $1 billion in trading volume. The portion is presently fixed at 10%.

Any user who has non-zero stake can delegate it to a validator in return for a share of rewards.

Any delegator receives a share of the rewards proportional to their stake contribution, minus the validator commission.

The HyperEVM validator active set consists of the top 21 validators by total stake (which may increase in the future). This set is reconstituted every 100,000 rounds, or approximately 90 minutes. To be eligible, a validator must possess at least 10,000 self-staked HYPE.

HYPE is the native token of HyperEVM, used for purchasing network blockspace (paying for gas).

Represents indirect cashflow, distributed to all HYPE holders due to HYPE buybacks.