The proposal seeks a binding social consensus that the funds will never be accessed through future protocol upgrades.
The Hyper Foundation proposed a validator vote to formally recognize HYPE tokens held in the Hyperliquid protocol’s Assistance Fund system address as permanently inaccessible, excluding them from the asset’s circulating and total supply.
According to the foundation, the Assistance Fund is a protocol-level mechanism embedded in the layer-1 network’s execution. It automatically converts trading fees into HYPE tokens and routes them to a designated system address. At the time of writing, the wallet contains about $1 billion in tokens.
The system address was designed without control mechanisms, making the funds irretrievable without a hard fork. “By voting ‘Yes,’ validators agree to treat the Assistance Fund HYPE as burned,” Hyper Foundation wrote.
