HYPE: what the token does
HYPE pays HyperEVM gas, secures consensus, discounts fees, bonds deployers, backs borrowing, and is what the Assistance Fund converts fees into and burns.
HYPE is Hyperliquid’s native token, and each unit sits in one balance at a time. Delegated staking HYPE earns rewards and the fee discount but is not trading collateral. Spot HYPE can be portfolio margin collateral but earns neither.
Say you hold 1,000 HYPE. Delegated, it earns about 23.7 HYPE a year before commission at 400M HYPE staked (about 2.37 per cent), plus a fee discount. Kept in spot at 20 USDC each, it can back up to 13,000 USDC of borrowing under portfolio margin (1,000 x 20 x 0.65 LTV).
What HYPE does, job by job
Section titled “What HYPE does, job by job”| Job | What HYPE does | Key number |
|---|---|---|
| HyperEVM gas | Pays for every HyperEVM transaction; base and priority fees are burned | 18 decimals on the HyperEVM |
| Consensus security | Staked to validators, who produce blocks in proportion to stake | validator self-delegation 10,000 HYPE, locked 1 year |
| Staking rewards | Paid to stakers from the future emissions reserve | about 2.37% a year at 400M HYPE staked (docs example) |
| Trading fee discount | Staking lowers your fees on every market | 5% above 10 HYPE staked, up to 40% above 500,000 |
| Deployer bonds | Staked by those who list perp dexes, outcome markets and quote assets; slashable | 500,000 HYPE for a HIP-3 dex or a HIP-4 deployer |
| Token deployment gas | Pays for deploying a HIP-1 token, priced by Dutch auction | auction runs 31 hours, falling to a 500 HYPE floor |
| Collateral | Can be borrowed against under portfolio margin and manual borrowing | loan-to-value 0.65 |
| Priority | Pays for earlier reads and earlier order execution; burned | gossip bids from 0.1 HYPE |
| Assistance Fund | Trading fees are converted into HYPE, which is then burned | system address 0xfefefefefefefefefefefefefefefefefefefefe |
Beyond the table:
- Gas. Base fees are burned and, unlike on most other EVM chains, so are priority fees (the docs credit HyperBFT). A HyperCore to HyperEVM transfer costs 200,000 gas at the next HyperEVM block’s base fee, charged on HyperCore (blocks, gas and RPC).
- Fee discounts. A linked staking account’s stake counts towards a trading account’s fees. Tiers: staking; schedule: fees.
- Bonds are slashable by validator vote, and slashed HIP-3 stake is burned, not paid to affected users. Requirements stack: stake counted towards HIP-3 does not also count towards HIP-4. An aligned quote asset adds 800,000 HYPE to the quote asset bond, 1,000,000 in total (deployer economics).
- Collateral. Under portfolio margin, an order short of the quote asset borrows it automatically against spot HYPE. Manual borrowing uses the same 0.65 LTV.
- Priority. Gossip priority (network data to an IP address sooner) is bid from the spot balance. Order priority is charged from the undelegated staking balance at the spot mark price (priority fees).
- Assistance Fund. The docs direct trading fees to HLP, the Assistance Fund and deployers. The fund converts fees into HYPE automatically during L1 execution, and its HYPE is burned, leaving circulating and total supply. Spot fees in quote tokens other than USDC also go to it.
The numbers
Section titled “The numbers”| Parameter | Value |
|---|---|
| Decimals on the HyperEVM | 18 |
| Decimals on HyperCore | 8 (1 HYPE = 1e8 wei in actions) |
| System address for HyperCore and HyperEVM transfers | 0x2222222222222222222222222222222222222222 |
| Validator self-delegation | 10,000 HYPE, locked 1 year |
| Delegation lockup | 1 day per validator |
| Unstaking queue | 7 days on mainnet |
| Reward rate | proportional to 1 / sqrt(total HYPE staked); about 2.37% a year at 400M staked |
| Staking fee discount | 5% (over 10) to 40% (over 500,000) |
| HIP-3 bond | 500,000 HYPE, at least 183 days |
| HIP-4 bond | 500,000 HYPE mainnet, 100 HYPE testnet, at least 183 days |
| Quote asset bond | 200,000 HYPE for 3 years; 50 HYPE on testnet |
| Aligned quote asset bond | 1,000,000 HYPE in total |
| HIP-1 deployment gas | Dutch auction over 31 hours, floor 500 HYPE |
| Portfolio margin LTV | 0.65; liquidation threshold 0.5 + 0.5 * LTV = 0.825 |
| Portfolio margin HYPE caps | 10M global supply, 1M per user |
| Gossip priority minimum bid | 0.1 HYPE |
Holding HYPE as a trader
Section titled “Holding HYPE as a trader”- The staking discount applies at every volume tier.
- You need HYPE on the HyperEVM to do anything there, including moving tokens back to HyperCore.
- The HyperCore to HyperEVM gas is not always HYPE. The FAQ says it needs HyperCore HYPE; measured on testnet, when that falls short the fee is taken in the token sent.
- A staking referral programme was proposed, not shipped. The docs say there is no definitive mainnet implementation.
HYPE in actions and contracts
Section titled “HYPE in actions and contracts”- HyperCore actions and CoreWriter payloads use wei of 1e8. On the HyperEVM, HYPE is the native balance, not an ERC20; the canonical wrapped HYPE is the system contract the docs give as
0x555...5. - Sending HYPE to its system address on either side moves it across. On the HyperEVM that is a plain value transfer.
- Read a staking balance from a contract with precompile
0x805(delegatorSummary). CoreWriter actions 3, 4 and 5 delegate, deposit into staking and withdraw from staking.
Deployer bonds, measured
Section titled “Deployer bonds, measured”- A bond earns rewards while delegated. On mainnet, all 12 deployer accounts hold more staked HYPE than they deposited net of withdrawals: 0.0029 to 17,562 HYPE of rewards.
- The bond counts undelegated stake. Against a 100 HYPE testnet requirement, 99.5 HYPE was refused and 100.5, all undelegated, was accepted.
- Another account’s stake does not count. A trading account linked to a staking account was refused deployer activation with
Deployer cannot have staking link. - HIP-3 stake stays slashable during the 7-day unstaking queue.
For how to stake and what it earns, see Staking HYPE, rewards and the unstaking queue. For where staked HYPE goes, see Validators and delegation.