Hyperliquid Labs to Distribute 1.2 Million HYPE Tokens to Team Members

TLDR

Table of Contents

1.2 million HYPE tokens will be distributed to team members on Jan 6.
Core contributors hold 230 million HYPE tokens under multi-year vesting.
HYPE trades at $26 with a market cap of $6.2 billion.
Over 61 percent of total HYPE supply remains locked.

Hyperliquid Labs is preparing for its next HYPE token distribution as 1.2 million tokens are scheduled to be unstaked. The payout, valued at roughly $31.2 million at current market prices, is set for Jan. 6. This comes after the team’s first allocation last November. The release marks the beginning of a structured token schedule for core contributors and highlights the team’s commitment to gradual token distribution and market stability.

Team Token Distribution Scheduled for January

According to a post on Hyperliquid’s official Discord, the 1.2 million HYPE tokens will be distributed to team members early next month. These tokens are part of the allocation reserved for Hyperliquid Labs’ core contributors, ensuring the team receives its share in a controlled manner.

Co-founder iliensinc said on Discord, “Moving forward, distributions, if any, will take place on the 6th of the month.” The previous allocation, totaling about 1.75 million HYPE tokens, occurred on Nov. 29, marking the start of the team’s vesting schedule. This schedule is designed to manage token supply carefully without affecting market trading or liquidity.

Core Contributors Hold Substantial Token Shares

Core contributors were allocated over 230 million HYPE tokens, nearly 24% of the total supply. These tokens are subject to a multi-year vesting plan, which includes a one-year cliff followed by a 24-month vesting period, according to DeFi Llama data.

A team member confirmed that vesting is not linear, and future releases may vary in size. The full timetable for Hyperliquid Labs’ vesting has not been publicly disclosed, and the team did not provide additional details when contacted. Gradual releases help maintain market balance and ensure predictable access to tokens for the team.

Current Market Overview of HYPE

HYPE, the native token of the Hyperliquid decentralized exchange, currently trades around $26 per token. There are approximately 238.4 million HYPE tokens in circulation. This gives the token a market capitalization of $6.2 billion. Its fully diluted valuation is roughly $25.1 billion, reflecting potential value if all tokens were unlocked and circulating.

Over 61% of the total supply remains locked. The genesis distribution initially awarded around 310 million tokens to early adopters and community members. This structure allows core contributors to gradually receive tokens while keeping a majority of supply under control.

Hyper Foundation’s Token Burn Proposal

Earlier this month, the Hyper Foundation proposed burning about $1 billion worth of HYPE tokens. These tokens were sent to the Assistance Fund, which automatically directs a portion of the Layer 1 blockchain’s trading fees to an inaccessible address.

The token burn is intended to reduce circulating supply while supporting long-term stability. Hyperliquid remains the largest decentralized perps DEX by accumulated volume. However, competition from platforms like Lighter on Ethereum and Aster on BNB Chain has reduced its share of the on-chain perpetuals market.

The January payout reflects a continuation of Hyperliquid Labs’ structured token release. It shows the team is gradually unlocking HYPE tokens while keeping a large portion of supply locked. Future distributions are expected to follow the monthly schedule announced by the team, providing transparency for both market participants and team members. The move reinforces Hyperliquid’s strategy to balance supply with controlled releases.