HYPE in the Assistance Fund system address of 0xfefefefefefefefefefefefefefefefefefefefe has been formally recognized as burned. The governance vote was based on stake-weighted consensus, with 85% of stake voting for burning, 7% against, and 8% abstaining.

The Hyper Foundation is proposing a validator vote to formally recognize the Assistance Fund HYPE as burned, removing the tokens permanently from the circulating and total supply. For context, the Assistance Fund converts trading fees to HYPE in a fully automated manner as part of the L1 execution. The Assistance Fund uses the system address 0xfefefefefefefefefefefefefefefefefefefefe. Similar to the zero address, the Assistance Fund system address has never had a private key with control over its funds. Funds are mathematically irretrievable without a hard fork. By voting “Yes,” validators agree to treat the Assistance Fund HYPE as burned. No onchain action is required, as the tokens are already in a system address with no private key. This vote is binding social consensus to never authorize a protocol upgrade to access this address. Voting process: + Validators should signal their intent in the governance forum by December 21 at 04:00 UTC (i.e., reply with Yes or No) + Users can stake to a validator who matches their view by December 24 at 04:00 UTC + The result will be based on stake-weighted consensus as of December 24 at 04:00 UTC

Over the past week, the community engaged with teams’ proposals for the USDH ticker for a Hyperliquid-first, Hyperliquid-aligned, compliant, and natively minted USD stablecoin. While USDH is no more than a reserved ticker at the protocol level, it has come to represent a community rallying around a common cause and a successful experiment in decentralized governance. Thoughtful dialogue, proposal iteration based on user feedback, and community stewardship are values that will continue to drive Hyperliquid forward. Regardless of the vote’s result, it will be exciting to see many of these proposals go live and contribute to growing the Hyperliquid ecosystem. Thank you to all participants who dedicated their precious time to be a part of this governance process. Each validator has stated their intended vote and reasoning in the Discord governance forum. Voting will begin on September 14 at 10:00 UTC, and stakers have until then to stake to a validator who matches their vote. There are 2 steps to change the validator you stake to: 1) Unstake from the validator and 2) Stake to a new validator who matches your vote. There is a 1-day cooldown after staking to a new validator before you can unstake from them. Important: Do not transfer HYPE from your staking balance to spot balance - this removes HYPE from your staking balance, and you will then be unable to participate in the vote. Voting is fully onchain through a transaction on the Hyperliquid blockchain and based on stake. When quorum (2/3) is reached, the designated address will be able to bid on the ticker in the spot deploy gas auction. As a reminder, the Foundation validators will effectively abstain by voting for the team with the most non-Foundation votes based on validator commitments made on September 11 weighted by stake on September 14.