According to the Hyper Foundation, the organization associated with the Hyperliquid ecosystem, users can now stake HYPE on the network. The foundation detailed that users can stake HYPE to a trusted validator and earn staking rewards in HYPE.
Hyperliquid’s HYPE Staking Debuts Amid Rapid Growth
Over the last few weeks, Hyperliquid, the decentralized perpetuals exchange operating on its own layer one (L1) blockchain, has been seeing a lot of buzz surrounding the project. There’s a few reasons why the Hyperliquid ecosystem has swelled and this is due to the technology behind it. The system utilizes a consensus technique called HyperBFT which is optimized for near-instant trade settlement and reportedly can outpace traditional decentralized exchange (dex) platforms in terms of settlement speed.
Hyperliquid’s technology rests on the reported 20,000 operations per second, allowing for efficient order management and trade execution. Moreover, the HYPE token was distributed through an airdrop. Hyperliquid essentially conducted a massive airdrop as part of its Token Generation Event (TGE) in November 2024. During this event, 31% of the total HYPE supply, amounting to 310 million tokens, was distributed to early supporters and active users of the decentralized perpetuals exchange platform.
Hyperliquid has experienced significant USDC inflows reaching an all-time high of $2.037 billion and it is presently coasting along at $1.652 billion.
HYPE has become a big deal and has risen exponentially in value. Presently, 333,928,180 HYPE is in circulation and each HYPE is valued at $26.85 on Dec. 30, 2024. This places HYPE in the 19th position in terms of market capitalization as the total valuation for this token today stands at $8.96 billion.
Dune Analytics data which compares the volumes of top perpetuals platforms.
The crypto asset is up 604% higher than it was on Nov. 29, 2024, when it was trading at an all-time low of $3.81 per coin. Now the Hyper Foundation, which plays a role in developing strategies and initiatives to advance the platform’s capabilities and user engagement, has announced that users can now stake HYPE.
“Staking is now live on mainnet,” the foundation stated on X. “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 the HYPE staked to them. Staking is a serious responsibility for the Hyperliquid community.”
The foundation added that users can delegate their HYPE tokens to a validator to earn staking rewards. When selecting validators, the X account disclosed that users may want to evaluate factors like uptime, commission rates, reputation, and their contributions to the Hyperliquid community.
The organization also announced plans for a Delegation Program under the Hyper Foundation to back validators with strong performance with the intention of fostering greater decentralization within the network. The foundation explained that details about the program are forthcoming. The team also concluded that while locked tokens can be staked at this time, any rewards generated will also remain locked.
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