DBA Proposes 45% HYPE Token Cut to Boost Investor Appeal

Written by Aaron S.,

Editor-In-Chief

Last Updated: September 23, 2025

Key Takeaways

DBA Asset Management has proposed reducing the total HYPE token supply by 45% to improve how it is valued and perceived by investors;
The plan includes scrapping unminted tokens, burning assistance fund tokens, and removing the 1 billion supply cap;
DBA noted that the current market undervalues HYPE due to future token supply, and this decision could make the asset more attractive.

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A crypto investment company, DBA Asset Management, has introduced a plan to cut the total number of HYPE tokens in circulation by 45%.

HYPE is the token used within Hyperliquid $106.55M , a platform for decentralized trading of derivatives.

On September 22, Jon Charbonneau, an investment manager at DBA, shared the proposal on X. The suggestion was developed in collaboration with @hasufl, a researcher in the crypto industry.

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The plan includes three main steps. First, it would cancel any future release of unminted tokens that were set aside for community rewards or emissions. Second, it would permanently destroy all tokens held in the Hyperliquid Assistance Fund. Third, it would remove the 1 billion token supply cap that was previously in place.

This means about 421 million tokens from the planned rewards and emissions would be removed, along with 21 million from the assistance fund.

All of this depends on approval through Hyperliquid’s governance system, but DBA holds a large amount of HYPE and regularly participates in staking.

Charbonneau explained that the market is undervaluing HYPE because it considers the total number of tokens that could be created in the future. He said this often gives the wrong picture and can lead to poor decisions about where to invest.

By reducing the unused supply, the token may appear more favorable to potential backers and users. He added that the protocol would still have the flexibility to issue new tokens if the community agrees to it later.

HYPE recently announced plans to begin releasing tokens monthly to team members starting November 29. How much will be distributed? Read the full story.