<a href=”https://www.coindesk.com/learn/what-is-a-dex-how-decentralized-crypto-exchanges-work/” target=”_blank”>Decentralized exchange</a> HyperLiquid announced the launch of HYPE, a native token that will be airdropped to early adopters on Friday.
One billion tokens will be issued, with 31% going to users who earned points in a campaign that ended in May. A further 23.8% will be set aside for current and future core contributors, the latter of which will be locked for one year.
HyperLiquid has more than 220,000 users and has racked up $2.4 billion in trading volume over the past 24 hours.
Points campaigns have become increasingly common in the <a href=”https://www.coindesk.com/learn/what-is-defi/ ” target=”_blank”>decentralized finance</a> (DeFi) sector this year as they incentivize the use of the platform in return for eventual token airdrops. They have even spurred the birth of a<a href=”https://www.coindesk.com/business/2024/10/11/scroll-airdrop-allocation-met-with-dismay-from-farmers” target=”_blank”>irdrop farmers</a>, investors who move liquidity from one project to another in order to be eligible for various airdrops.
Unlike a standard governance token, HYPE will have numerous functions including staking capabilities and a payment method for gas fees. Staking HYPE will secure HyperBFT, the proof-of-stake consensus algorithm that powers the HyperLiquid platform.
The token generation event will take place at 07:30 UTC on Nov. 29 and a HYPE/USDC market will be added on HyperLiquid’s spot trading book.
