The unlocking of the $314 million Hyperliquid token scheduled for Saturday puts the decentralized perpetual exchange (DEX) in the most essential tokenomics hub yet, as one community member calls for clearer communication on how it will manage the unlocking of core contributors.
Tokenomist data shows that Hyperliquid will do it on Saturday release 9.92 million HYPE tokens, which is 2.66% of the supply. At the time of writing, the tokens were worth approximately $314 million. HYPE allocations will be released on a “cliff release”, meaning they will be released all at once.
The unlocking sparked public discussions among holders, including an open letter from an X user named Andy who urged the team to reach out to the community before unlocking the tokens. At the time of writing, HYPE transactions at $31, down 23% over the past month.
“The team and drop recipients who will eventually be able to sell will ruffle feathers until you address the community directly,” Andy wrote. “The entire market is suffering from PTSD due to the destruction of VC-backed vapor charts.”
Arthur Hayes says selling pressure is to be expected
BitMEX co-founder Arthur Hayes released a blunt warning that the upcoming unlock event introduces inevitable sales pressure for the token. He said confidential assurances could not eliminate uncertainty
“Even if a small team swears not to sell, there is nothing stopping them from doing so. So you must assume that the daily selling pressure is >0%,” Hayes wrote.
He pointed to the piercing decline in Hyperliquid’s price-to-fully diluted valuation (FDV) ratio since July as evidence that investors are already discounting the risk of coming dilution unless revenue growth continues to outpace supply growth.
While some community members are calling for more open communication, others say the Hyperliquid team is under no obligation to reveal what it will do with its tokens.
One X user he said that disclosing the amount and timing of the allocation was “sufficient” and that the team can decide internally what it will do with its tokens.
Another community member criticized the open letter and called it’s “desperation” and “borrowed conviction.” He said that out of all the teams, Hyperliquid’s members “definitely deserved” their tokens.
Related: Trader sets fire to $3 million to blow a $5 million hole in Hyperliquid’s vault
Perpetual DEX volumes remain steady in November
Despite the broader cryptocurrency market slump, continuous DEX indices saw consistent daily volumes ranging from $28 billion to $60 billion, According to to DefiLlam.
The four largest DEX indices – Lighter, Aster, Hyperliquid and EdgeX – have recorded a combined trading volume of more than $1 trillion in the last 30 days. Lighter led the pack with $300 billion in volume, followed by Aster with $289 billion in monthly volume.
Hyperliquid came in third with $259 billion in volume, while EdgeX recorded $177 billion in volume during the same period.
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