Hyperliquid clarified several misconceptions and issues reported by its community.
The Hyperliquid network addressed concerns over validator qualification and decentralization.
HYPE token dropped 17% today, while trading volume is up by 65%.
Hyperliquid addresses some of the key misconceptions and issues reported by its community members. Meanwhile, HYPE token price is trading at $21.21, with a 17% decrease in the last 24 hours. However, a 65% rise in its trading volume shows a positive sign for a potential surge.
Most of the concerns raised by community members of Hyperliquid are regarding decentralization of validators. The Hyperliquid account on X, stated that all validators are qualified solely based on their testnet performance. It is confident that the number of validators will increase as the network matures like all other blockchain networks.
The project’s node code is currently closed source. Referring to the same, Hyperliquid said the code will be open source when it’s secure to do so. This is very unlikely for a blockchain network since most of the top and reliable crypto networks are all open source. Open source is also important for faster development of the network by community review and security auditing.
Furthermore, Hyperliquid announced a “Foundation Delegation Program” to further decentralize the network by supporting high-performing validators. However, the Hyperliquid community is raising concerns, stating this system lacks transparency.
Hyperliquid Faces Backlash Over Validator Decentralization
One of the X accounts, “AndrewII.Sol” replied to Hyperliquid’s post, questioning the credibility of the validator qualification process. It even addressed several key issues with the existing Hyperliquid system. Another comment by “Vito The Don” stated, “3 validators isn’t decentralization, it’s a group project.”
While most of the community members supported the project, believing in its trajectory, some of them caused a serious backlash. Nonetheless, Hyperliquid must maintain its reliability and trust among its own community. Otherwise, it will be difficult for the project to keep up with its growth and development.
Meanwhile its native token HYPE has dropped by over 17% in the last 24 hours. At press time, its price is trading at $21.21, which is significantly less than its ATH of $34.96. While market cap stuck at slightly over $7 billion, trading volume is $247 million in the last 24 hours.
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