Hyper Foundation Introduces Staking for HYPE Token on Mainnet
Hyper Foundation, established by Hyperliquid in October to manage its blockchain's development, has launched staking for the HYPE token on the mainnet, marking a significant advancement for the platform.
As per an announcement on December 30, users can now secure the network by delegating tokens to trusted validators. This functionality follows the token's launch during HyperLiquid's genesis event in November.
Users Can Now Stake HYPE on Mainnet
The foundation aims to empower the community to actively participate in securing the HyperLiquid blockchain through HYPE token staking. Users can select validators based on metrics such as uptime, commission rates, reputation, and contributions. Validators propose new blocks in proportion to the HYPE staked with them, ensuring security and decentralization. Stakers can earn rewards in HYPE, incentivizing their participation.
HyperLiquid has staked approximately 300 million tokens valued at around $8.4 billion. In the first hour of launch, HYPE holders staked seven million tokens across 16 validators.
Hyper Foundation to Launch a Delegation Program
The Hyper Foundation plans to introduce a Delegation Program to support high-performing validators and enhance network decentralization. While more details are pending, locked tokens can also be staked, although rewards will remain locked.
Staking is now live on mainnet.
Staking is an important milestone for Hyperliquid because it allows the diverse community of HYPE stakers to collectively secure the network. Like other proof of stake networks, new blocks on Hyperliquid are proposed by validators in proportion to… pic.twitter.com/J8uECmHGwK
— Hyper Foundation (@HyperFND) December 30, 2024
Following the staking announcement, HYPE experienced a 3% increase, with a market cap of $9.46 billion and a value approaching $30. The token was initially priced at $3.57.
HYPE was introduced to the crypto market in November alongside the Hyper Foundation's establishment. It serves multiple functions within the ecosystem, including acting as the gas token for HyperEVM, Hyperliquid's execution environment. The token is available for trading on the platform's decentralized exchange against USDC.
The foundation allocated 31% of the total supply (310 million tokens) for a community airdrop to reward active users contributing to ecosystem growth. An additional 38.8% is reserved for future community rewards, while 23.8% is allocated to core contributors under a one-year lock-up period. No tokens were distributed to private investors or centralized exchanges to uphold a community-first approach.