Yeliz Akmaca 
Hyper Foundation has taken a decisive governance step that directly affects supply dynamics across the Hyperliquid ecosystem. The foundation proposed zeroing the Assistance Fund, effectively removing nearly $1 billion worth of HYPE tokens from circulating supply. The development gained broad attention across international crypto media between December 17 and 18, 2025.
This move goes beyond a routine technical change. It sends a clear strategic signal about Hyperliquid’s long-term token economics.
Why It Matters?
Approximately 37 million HYPE tokens would be formally excluded from supply calculations. This represents close to 13% of the effective circulating supply and could meaningfully influence pricing behavior and investor risk perception.
Why Is The Assistance Fund Being Zeroed?
The Hyperliquid Assistance Fund accumulates HYPE tokens generated automatically from trading fees on the platform. The protocol holds these tokens in an address without a private key, making them inaccessible under normal conditions.
In practice, the tokens are already unusable. Hyper Foundation’s proposal aims to formalize this status by permanently excluding them from both circulating and total supply metrics. Once zeroed, the tokens would no longer be considered part of Hyperliquid’s economic framework.
The decision also removes any future possibility of reintroducing these tokens through governance changes or protocol upgrades.
Governance Vote And Key Dates
The proposal has been submitted to Hyperliquid validators for approval. Validators must signal their positions by December 21, 2025. Token holders can delegate their votes until December 24, when the network finalizes the outcome.
If approved, the decision becomes binding through social consensus. The HYPE tokens held in the Assistance Fund would be permanently excluded, with no pathway for recovery.
This process underscores Hyperliquid’s commitment to transparent and decentralized governance.
Market Impact And Investor Behavior
On-chain data indicates that the Assistance Fund accounts for a significant share of the current HYPE supply. Removing this amount could reshape medium- to long-term market dynamics, particularly in spot markets.
Some analysts argue that the proposal strengthens HYPE’s deflationary narrative and reinforces confidence among long-term holders. Others warn that permanently disabling the fund eliminates a mechanism that could have provided flexibility during future market stress.
This contrast highlights the evolving balance between supply discipline and protocol resilience within the Hyperliquid ecosystem.
Is Hyperliquid Entering A New Phase?
Beyond supply reduction, the proposal signals a shift toward a more rigid and predictable token economic model.
The outcome of the vote may play a decisive role in shaping HYPE’s long-term value narrative. On-chain activity will reveal how large investors and high-volume traders respond in the coming days.
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