DBA founder and Flashbots strategy director launched a proposal to reduce the total supply of HYPE by 45%

Odaily Planet Daily reports that Jon Charbonneau, founder of crypto investment firm DBA and crypto blog Uncommon Core 2.0, and Hasu, head of strategy at Flashbots, have launched a proposal to reduce the total supply of HYPE by 45%. The proposal proposes the following changes to Hyperliquid's economic model: revoking the authorization of all unminted HYPE currently allocated for future unlocks and community rewards (FECR); destroying all HYPE currently held in the Assistance Fund (AF), and all HYPE continuously acquired by the AF; and removing the maximum supply cap of 10 HYPE. Continued token issuance (e.g., for staking issuance or community rewards) will increase the total supply. The proposers stated that Hyperliquid's current large number of authorized, uncirculated tokens could be problematic, and that the proposal would not impact the relative ownership of the protocol's economics by existing HYPE token holders, Hyperliquid's ability to fund value-added initiatives, or how these decisions are made.

The proposal's originator disclosed that one or more investment funds managed by DBA hold significant positions in HYPE tokens, as do both co-authors. If this proposal proceeds to a formal governance vote and DBA, its affiliates, and/or co-authors are able to participate, all co-authors currently intend to vote in favor, as applicable.