Hyperliquid buys back 46.8 million tokens worth $3.1 billion
Hyperliquid, a decentralized exchange for financial derivatives, has a unique tokenomics loop. The platform uses 99% of its fees to buy back its native token, Hype, on the open market.
This buyback mechanism has led to the purchase of around 46.8 million Hype tokens, or 15.7% of its circulating supply, worth around $3.1 billion since its launch in late 2024.
The token buyback has created a self-sustaining cycle, where increased trading generates more fees, which in turn creates more buyback pressure. This cycle has helped Hyperliquid to differentiate itself from other cryptocurrencies.
Hyperliquid’s platform allows users to trade various financial derivatives, including perpetual futures, spot token pairs, and tokenized commodities, all from one platform.