Crypto asset manager DBA’s co-founder Jon Charbonneau and Flashbots strategy lead Hasu have co-authored a proposal that would alter Hyperliquid’s native token HYPE’s economic model.

The proposed changes would immediately reduce HYPE’s total supply by 45% by revoking unminted tokens meant for future rewards, burning tokens held in the assistance fund, and removing the supply cap on total tokens.

This story is an excerpt from the Unchained Daily newsletter.

According to the proposal’s authors, the problem with the current model is that large amounts of HYPE are authorized but not issued, and market valuation methods like Fully Diluted Value (FDV) often count these tokens, inflating supply and undervaluing HYPE.

Importantly, the changes would see no change to existing token holder ownership or the protocol’s ability to fund value-creating initiatives.

Supporters of the proposal said that it provides more clarity and fixes a broken FDV metric, while critics argued that HYPE’s fixed supply should not be removed.