46.7 Million HYPE Tokens Removed from Circulation Through August, Equal to 4.7% of Initial Supply
Key Facts
Hyperliquid Strategies’ annual report filed with the U.S. Securities and Exchange Commission said the Assistance Fund had acquired 46.7 million HYPE tokens and permanently removed them from circulation through August 23, 2026, equal to 4.7% of the initial supply. This is a cumulative total through that date, not a new removal on the day the report was published. The company said the fund buys tokens on the open market using protocol fees. The report said that “46.7 million HYPE tokens had been acquired by the Assistance Fund and permanently removed from circulation” by August 23. The total puts the fee and token-removal mechanism in the context of supply, without by itself indicating that the price will move in any particular direction.
The protocol allocated 99% of the fees it generated to the Assistance Fund, compared with 97% before Hyperliquid announced the increase in allocations on August 26, 2025. The report says the fund continuously buys HYPE on the open market, then removes the tokens it has acquired from circulation. The fee allocation gives the mechanism a funding source tied to protocol activity, while the reported removal rate reflects what had accumulated by the disclosure date. But the report does not guarantee that the purchases will affect the market price. It explicitly cautions that “no assurance can be given regarding the impact of this mechanism on HYPE’s market price.”
HYPE’s maximum supply is 1 billion tokens, while circulating supply stood at about 235.0 million tokens on August 23, 2026, according to the report. Against this, 38.9% of the maximum supply, or 388 million tokens, is allocated to future emissions and community rewards, subject to phased vesting. Another 23.8% of the maximum supply, or 238 million tokens, was allocated to core contributors. Vesting of this allocation began monthly in November 2025 and continues through 2027-2028. These allocations show that assessing cumulative removals also requires consideration of tokens scheduled for future distribution and their vesting dates.
HYPE was also used as collateral in perpetual markets enabled by the HIP-3 framework. Hyperliquid launched the framework in November 2025, allowing third-party market developers to create markets directly on the platform’s order book by staking HYPE as collateral. The markets include reference assets such as stocks, commodities, indices and other real-world assets, according to the report. In the 30 days through August 23, 2026, HIP-3 markets accounted for about 48.0% of total trading volume on Hyperliquid. Their cumulative volume since launch exceeded $514 billion through the same date, but trading volume does not determine the amount of demand generated for the token or its price impact.
The report said future development could include HIP-4, a potential framework for event-based contracts and prediction markets, as well as options and other structured financial products. It said HYPE could serve as collateral and a settlement currency in HIP-4 markets. However, the company cautioned that implementation and the proposed roles for the token are not guaranteed, and that HIP-4 may not be implemented as described. This remains among the protocol’s potential future developments and does not change the date of the Assistance Fund’s reported total of August 23, 2026. The report also gives no specific timeline for implementing HIP-4.