Hyperliquid Labs HYPE Token Payout Begins as 1.2M Tokens Unstake

Hyperliquid Labs HYPE token payout news is drawing significant attention across the crypto market as the organization behind the Hyperliquid decentralized exchange prepares for its first major token distribution. According to an official Discord update, approximately 1.2 million HYPE tokens, valued at $31.2 million, have been unstaked and are scheduled to be distributed to team members on January 6. This marks a key milestone in the token’s vesting lifecycle and could have broader implications for HYPE’s circulating supply and market perception.

Hyperliquid Labs HYPE Token Payout Details and Timeline

The Hyperliquid Labs, the group that released the Hyperliquid decentralized exchange, affirmed the next payout in a post to Discord on Sunday. According to the Discord post, the unstaked tokens would be rewarded to internal participants as part of the already announced contributor rewards. 

Hyperliquid co-founder, iliensinc, clarified the future schedule, stating: “Moving forward, distributions, if any, will take place on the 6th of the month.” While this suggests a recurring monthly cadence, the full vesting timetable for Hyperliquid Labs has not been made publicly available. 

HYPE Token Supply, Circulation, and Market Valuation

In November 2024, the HYPE token, native to the Hyperliquid ecosystem, was launched via a highly hyped community airdrop. The total supply of HYPE is limited to 1 billion tokens, of which about 23.8% should be allocated to core contributors in a progressive unlocking pattern. At the moment, there are approximately 238.4 million HYPE tokens in circulation, meaning that more than 61% of the total supply is locked. As of press time, HYPE is trading at approximately $25.89, with a 3.36% rise in the last 24 hours and a market cap of $8.78B. 

HYPE 24-Hour Chart, December 29, 2025. Source: CoinMarketCap.

Genesis Distribution and Contributor Vesting Structure

Upon its launch, the genesis distribution gave about 310 million HYPE tokens to early protocol adopters and community members. Another 237 million of the tokens were reserved for core contributors, with a one-year cliff-vesting scheme followed by a 24-month vesting schedule, according to DeFi Llama projections. Though the present 1.2 million token unstake fits within this structure, the lack of a fully transparent vesting calendar still leaves certain confusion for investors who track future unlocks to supplies.

Token Burns and Hyperliquid’s Market Position

Earlier this month, the Hyper Foundation proposed burning approximately $1 billion worth of HYPE tokens that were sent to the Assistance Fund. This system will automatically redirect a fraction of Layer 1 trading fees to an unreachable address, essentially taking tokens out of circulation and potentially compensating for the inflation of future unlocks. Despite increased competition, Hyperliquid remains the largest decentralized perpetual exchange by accumulated trading volume. However, its share of the on-chain perpetuals market has declined as competitors such as Lighter on Ethereum and Aster on BNB Chain gain traction.

Conclusion: Why the Hyperliquid Labs HYPE Token Payout Matters

The Hyperliquid Labs HYPE token payout will be a decisive step in the long-term tokenomics approach of the project. Although the amount of tokens issued, 1.2 million, is not very high in comparison to the overall supply, it sets a precedent for future monthly unlocks and adds to the significance of transparency regarding the vesting schedules. With Hyperliquid balancing incentives of contributors, token burns, and competitive tensions, market participants will be observed closely to find out how these payouts affect the price stability and the investor confidence in the months to come.

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Disclaimer: This article is for informational purposes only and does not constitute financial advice. Cryptocurrency investments are highly volatile and risky. Always conduct your own research and consult with a qualified financial advisor before making any investment decisions.