Proposal to 'Reduce HYPE Total Supply by 45%' Initiated by DBA Founder and Flashbots Strategy Lead

Foresight News reports that Jon Charbonneau, founder of crypto investment firm DBA and crypto blog Uncommon Core 2.0, along with Hasu, strategy lead at Flashbots, have initiated a proposal to 'reduce HYPE total supply by 45%.' The proposal suggests the following changes to Hyperliquid's economic model: revoke all unminted HYPE allocated to Future Unlock and Community Rewards (FECR); burn all HYPE currently held in the Aid Fund (AF), as well as all future HYPE acquired by the AF; and remove the maximum supply cap of 10 HYPE. Ongoing token issuance (e.g., for staking rewards or community incentives) will increase the total supply. The proposers stated that Hyperliquid's current large allocation of authorized but non-circulating tokens could pose issues. This proposal will not affect existing HYPE token holders' relative ownership of the protocol's economy, Hyperliquid's ability to fund value-accretive initiatives, or the decision-making process for these matters. The proposers disclosed that one or more investment funds managed by DBA hold significant positions in HYPE tokens, and both co-authors personally hold HYPE as well. If this proposal proceeds to a formal governance vote, and DBA, its affiliates, and/or the co-authors are eligible to participate, all co-authors currently intend to vote in favor (subject to circumstances).