Hyper Foundation debuts staking of HYPE token on mainnet
The Hyper Foundation announced that staking of HyperLiquid's native HYPE token has officially begun on the mainnet of the decentralized exchange. Following Jupiter Perpetual Exchange, Drift Trade, GMX, and dYdX, Hyperliquid is the fifth-largest decentralized derivatives exchange in terms of total value locked.
Staking is now live on mainnet.
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… pic.twitter.com/J8uECmHGwK— Hyper Foundation (@HyperFND) December 30, 2024
HYPE token staking on mainnet now available
According to a Hyper Foundation post via X on December 30, "Staking is an important milestone for HyperLiquid because it allows the diverse community of HYPE stakers to collectively secure the network. On HyperLiquid, validators propose new blocks in proportion to the HYPE staked to them, just like in other proof of stake networks."
HYPE holders can now assign their tokens to reliable validators in order to receive rewards for staking. The post urged users to think about metrics like commission rates, reputation, community contributions, and validator uptime when deciding where to stake. This system enhances the network's security and decentralization while rewarding participation, the Hyper Foundation further explained.
Users can stake locked tokens
Despite the fact that the rewards from locked tokens are currently locked, it is also possible to stake them, the post added. As of the time of writing, over 320 million HYPE tokens have been staked across multiple validators, according to an update on the HyperLiquid platform. The HyperLiquid website states that "stakers should only delegate to trusted validators, as they will only be rewarded when the validator successfully participates in consensus."
Delegation program to be launched by Hyper Foundation
The Hyper Foundation also announced plans to start a Delegation Program to reward top-performing validators in order to further promote network decentralization. Although actual details of the program are still to be finalized, the foundation stated that it would give priority to validators who contribute to the expansion of the ecosystem.
HYPE token growth
Since its token generation event on November 29, HyperLiquid's native token, HYPE, has grown significantly. The market performance of the HYPE token has also improved since staking was introduced on Hyperliquid's mainnet. It is anticipated that the addition of staking will increase the HYPE token's utility and value, drawing more users to the platform and encouraging more innovation within the Hyperliquid ecosystem.
According to CoinGecko data, the token's price has increased by more than 640% since then, reaching an all-time high of $34 on December 22 and then closing at about $28 as of Friday, December 27. Motivated by the announcement of the new staking feature, HYPE gained momentum on Monday morning and was up 2% as of this writing, according to CoinMarketCap. The value of the digital asset has increased from $3.57 on the day of its launch in November to almost $30 per token as of today.
With 333.92 million tokens in circulation out of a maximum supply of 1 billion, HYPE has a market valuation of about $9.06 billion at the moment and a fully diluted valuation of more than $27.13 billion.
Disclaimer
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