Hyperliquid Clarifies HYPE Unlocks Following Co-Founder Disclosure
The Hyperliquid decentralized derivatives platform has addressed growing community concerns regarding its token supply following a significant disclosure from its co-founder, Iliensinc. On December 28, 2025, the co-founder revealed via Discord that 1.2 million HYPE tokens currently held by Hyperliquid Labs are being unstaked today to prepare for distribution. While on-chain tracking tools had previously raised alarms about a potentially massive 9.92 million token unlock scheduled for December 29, the team clarified that the current movement is part of a structured and controlled release plan. These unstaked tokens are earmarked for core team members, with the actual distribution scheduled to take place on January 6, 2026. This announcement has brought a degree of much-needed transparency to the project’s tokenomics, providing stakeholders with a clearer view of the protocol’s long-term incentive alignment.
Predictable Distribution Cycles and Team Incentives
A critical aspect of the new disclosure is the establishment of a fixed monthly schedule for future team distributions. Hyperliquid has confirmed that any subsequent releases of team-held tokens will occur on the 6th of each month, creating a predictable framework designed to mitigate sudden market shocks. Currently, core contributors hold approximately 23.8% of the total 1 billion HYPE supply, which is governed by a three-year vesting plan that includes a one-year cliff followed by linear vesting through 2027. By formalizing these monthly windows, Hyperliquid aims to shift the narrative away from “surprise unlocks” toward a more institutional-grade transparency model. This structure ensures that while team members can gradually realize the value of their contributions, the broader market has sufficient time to price in the additional circulating supply without the volatility typically associated with large-scale on-chain movements.
Market Reaction and the Resilience of HYPE Liquidity
Despite the initial chatter surrounding the 1.2 million token unstaking event, the HYPE market has remained remarkably stable, trading near the $25.38 level with a market capitalization of approximately $8.6 billion. Traders appear to have welcomed the co-founder’s proactive communication, as the clarity provided in the Discord announcement assisted to neutralize the bearish sentiment generated by automated on-chain alerts. Furthermore, the protocol’s ongoing purchaseback initiatives and its status as a top-tier perpetual DEX have provided a robust liquidity floor, absorbing minor trade-side pressure from earlier team distributions. As the January 6 distribution date approaches, the focus of market participants has shifted toward whether team members will choose to restake their tokens or liquidate them into the spot market. However, the overall sentiment remains cautiously optimistic, as the project’s move toward a transparent, recurring unlock schedule is viewed as a sign of maturity for one of the ecosystem’s most active decentralized platforms.
