Why Hyperliquid Should Cut Its Total Token Supply Nearly in Half - Ep. 909
Episode publishedPodcast: UnchainedUnchained
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The practical reality in crypto is that most people are just using this FTP number, which tells you the thing is worth 50,000,000,000 when in our mind, like, we think the most relevant metric is 30,000,000,000.
Hi, everyone. Welcome to Unchained, your no hate resource for all things crypto. I'm your host, Laura Shin.
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Today's guest is John Charbonneau, cofounder and general partner of DBA. Welcome, John.
Hey. It's great to be on.
So John and I just had a whole bunch of technical difficulties and his Wi Fi is not the best right now. So we are going to pray that this conversation goes smoothly. All right, so DBA published a proposal to reduce hyperliquid supply by 45%. John, this was actually pretty well received from what I could gather. I did see some criticisms, but we can get into this later. What problem or problems were you trying to resolve with this proposal?
Yeah. So this is a it's a broad problem across, I would say, a lot of the industry, which is why, like, I've kind of thought about it for a while. And then in particular for hype, have thought about it for a while, had been talking with it as well. Also with who, also, wrote the proposal together. We've been talking about this a while. Like, I there's a number of investors who are aware of this general issue across the industry. It's just that I think it's hype is probably one of the strongest cases where the two main, kind of metrics, I would say, at the high level that people use when evalua
Okay. Yeah. I mean, I think, this even goes to really simple things like people saying, oh, well, the 21,000,000 cap on Bitcoin isn't real because so many coins have been lost. And yeah, there's just ways where the numbers yeah, I understand you need to standardize these things and yet at the same time standardization does not allow for nuance in the same way. So walk us through what it is that you're proposing. Outlined a few different buckets of hype supply, so explain which ones you're targeting and what you propose be done with those buckets.
So concretely, the the, like, the kind of explicit bucketing terminology of tokens that we're trying to address are tokens which are authorized to enter circulation but are not actually, outstanding supply. And so there's generally two broad buckets of that for hype that are pretty large. One is the assistance fund, which is this is on an ongoing basis. The the majority of revenues that, hyperlink with the protocol receives are paid in USDC. They go to the assistance fund, and the assistance fund uses that to buy hype, and they just continuously accumulate that. That's what they do with the ma
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