Governance and HYPE

Understand the HYPE token ecosystem, governance processes, and how you can participate in the Hyperliquid L1 evolution.

Last updated: 2025-12-26|6 min read

The HYPE Token

HYPE is the heartbeat of the Hyperliquid ecosystem. Beyond being a tradable asset, it serves several critical functions within the network architecture.

  • Gas Fees: Used to pay for transaction fees on the Hyperliquid L1.
  • Governance: Grants holders the right to propose and vote on protocol changes.
  • Staking: Secures the network through a Proof-of-Stake (PoS) mechanism.

Governance Process

Hyperliquid is a community-driven protocol. Changes to the L1, including fee structures and new feature integrations, go through a formal voting process.

Proposal Workflow
Proposals are first discussed in the community forums before moving to an on-chain vote where HYPE holders decide the outcome.

Staking & Rewards

By staking your HYPE, you contribute to the security of the Hyperliquid L1. In exchange, stakers receive a portion of the network fees and potential ecosystem rewards.

Passive Participation
Staking is a non-custodial process. Your tokens stay under your control while helping the network reach consensus.

Risk Warning: Trading perpetual futures involves significant risk of loss. Only trade with capital you can afford to lose. Dexly is a non-custodial interface; you are responsible for your own funds and trading decisions.

Frequently Asked Questions