**Hyperliquid Launches Staking on Mainnet**

Hyperliquid, a decentralized finance protocol, has rolled out native staking on its mainnet, enabling users to earn rewards by securing the network. Users can choose from 16 validators based on metrics like uptime and reputation. The protocol, known for decentralized crypto trading, reported over $12 billion in trading volume in December.

**Staking and Token Dynamics**

Staking involves locking tokens to support network operations, with participants earning rewards. Currently, $344 million in HYPE tokens are staked. An airdrop in November distributed 310 million HYPE tokens, boosting its price significantly.

**Regulatory Challenges**

Despite potential favorable US regulations in 2025, challenges remain. The IRS maintains staking rewards are taxable upon receipt and has classified certain crypto protocols as brokers, requiring detailed transaction disclosures.