DBA Proposes 45% HYPE Token Supply Cut and Token Burn Plan

DBA Asset Management has proposed a 45% cut in the HYPE token supply to improve valuation clarity and attract investors. Shared by Investment Manager Jon Charbonneau on September 22, the plan revokes 421 million unminted HYPE tokens from community and reward allocations, burns 21 million HYPE from the Hyperliquid Assistance Fund, and removes the fixed 1 billion token cap. Under the proposal, any future HYPE token issuance would need explicit governance approval via Hyperliquid’s decentralized governance. The move targets supply dilution that weighs on HYPE’s market sentiment. The proposal also aligns with HYPE’s announcement of monthly token distributions to team members starting November 29 and Hyperliquid’s governance vote to launch USDH, a new US dollar stablecoin by Native Markets. Hyperliquid recorded $330 billion in July volume with 11 staff. HYPE token hit an all-time high of $59.30 before a 22% decline to around $46 on unlock worries and profit-taking. If approved, the supply cut could sharpen HYPE token price signals and reduce dilution, while USDH flows may boost long-term trading activity.