The Hyper Foundation has confirmed that 37.5 million Hype tokens are permanently removed from supply after a decisive governance vote. The decision formalizes a burn that many in the community had long expected.
The vote used a stake-weighted governance model and drew broad validator participation. Around 85% of voting power supported the proposal, signaling strong network consensus.
The burned tokens sit at a system address, 0xfefefefefefefefefefefefefefefefefefefefe, that has no private key. This makes the assets mathematically irretrievable under any current or future conditions.
The locked balance is estimated to be worth approximately $912 million at the current market price. They decrease the supply in circulation and restrain the general supply of tokens.
The tokens were based on the Assistance Fund, which is connected to the Layer 1 perpetual futures blockchain of Hyperliquid. That fund transforms part of the spot trading profit generated on the network into Hype over time.
The foundation deposited the balance to an unrecoverable address and therefore carried out a burn-like operation without further protocol modifications. The solution was forked and avoided and did not need a technical upgrade.
Hype vote reduces uncertainty over future supply
Community reaction leaned positive after the results were finalized. Some users described the outcome as a clear signal that strengthens long-term confidence in Hype’s tokenomics.
Supporters argued that the vote removes uncertainty around whether the tokens could ever reenter circulation. They said predictable supply rules are essential for credibility.
Moreover, not all responses were supportive. Some participants warned that eliminating the Assistance Fund balance could increase reliance on the remaining HLP safety fund during stress events.
Others focused on governance structure. They raised concerns about validator concentration in stake-weighted voting systems.
The vote proposal was released on December 17, 2025. It requested validators to formally cancel the Assistance Fund tokens in circulation and total supply.
The vote was supposed to establish binding social consensus, yet the tokens were already inaccessible. The outcome ensures that even a future protocol change cannot open them.
The token holders had the option of delegating their stakes to known-similar validators. Validators had until December 24 to submit their votes.
However, the official burn reduces the total token supply of Hype, which started at $1 billion. It also reduces the fully diluted value of the project.
Hype price holds near $23.90 after governance vote
At the time of writing, Hype traded at around $23.90, according to CoinMarketCap. Market capitalization of the token was $8.11 billion, and FDV was approximately $22.98 billion.
In the last 24 hours, there was a slight reduction in the trading volume. The movement aligned more with the broader market movement than the governance ruling.
The institutional interest is still increasing. Bitwise and 21Shares have submitted ETF filings associated with Hype to the US Securities and Exchange Commission.
Bitwise is planning an ETF that would actively hold tokens of Hype. So far, 21Shares has made applications for approval on a 2x leveraged investment with twice the daily exposure to the token.
However, the filings are intended to offer controlled access without the necessity of ownership. They indicate an increased interest in Hype in traditional finance markets.