Étienne Girard
Hyper Foundation, the organization behind the Hyperliquid perpetuals trading platform and its Layer 1 blockchain, recently responded to growing concerns regarding the centralization of its network validators. Critics claim that validator seats are being sold and that the platform lacks sufficient decentralization, sparking heated discussions across social media platforms like X.com.
In a comprehensive statement, Hyper Foundation dismissed allegations that validator positions can be purchased. It clarified that the 16 validators currently supporting the Hyperliquid network were chosen based on their performance during the testnet phase.
“There is no way to buy a seat at the table,” the foundation stated in its post, emphasizing that such claims undermine the efforts of validators who invested significant time in mastering the system.
Plans for Increased Decentralization
Acknowledging concerns about centralization, the foundation reiterated its commitment to expanding its validator pool. A token delegation program is already in place to reward high-performing validators and improve the network’s decentralization over time.
Hyperliquid’s native token, HYPE, launched in November 2024 through a token generation event and community airdrop. Early supporters received 31% of the total token supply, totaling 310 million tokens.
HYPE Token Performance and Market Metrics
Following the airdrop, the HYPE token experienced a significant price increase, reaching an all-time high of $35.73 on December 21, 2024. However, the price has since corrected by 40%, now trading around $21. The token boasts a market cap of $7.3 billion, with a fully diluted valuation of over $21 billion and a circulating supply of approximately 333 million tokens.
In addition to validator-related issues, community members voiced frustrations over the network’s closed-source node code and its reliance on a single-binary system. Hyper Foundation acknowledged these concerns, emphasizing its commitment to eventually open-sourcing its code.
“While the node code is currently closed source, we recognize the importance of transparency,” the foundation stated. “Once we are confident the code is secure, it will be made open source.”
The foundation also defended its use of a single-binary system, pointing out that even established networks like Solana rely heavily on this model.
Commitment to Transparency and Growth
Hyper Foundation concluded its statement by reaffirming its focus on scalability, security, and transparency as the Hyperliquid network evolves. Future plans include further decentralization efforts and ongoing engagement with the community to address concerns and ensure the platform’s sustainable growth.
