Governance and HYPE
Understand the HYPE token ecosystem, governance processes, and how you can participate in the Hyperliquid L1 evolution.
Key takeaways
- HYPE is the native utility and governance token of the Hyperliquid L1, used to pay gas fees, vote on proposals, and stake to secure the network.
- Hyperliquid governance is community-driven: proposals are discussed in community forums first, then decided by an on-chain vote of HYPE holders.
- Staking HYPE is non-custodial and helps the Proof-of-Stake network reach consensus, with stakers earning a share of network fees and ecosystem rewards.
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
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
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Frequently Asked Questions
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