Hyper Foundation Addresses Validator Concerns

Hyper Foundation, which oversees the Hypeliquid perpetuals trading platform and Layer 1 blockchain, has responded to concerns regarding its network validators.

Validator Allegations

Central to these concerns are allegations that validator seats on the platform are for sale, along with claims of excessive centralization. Hyperliquid is a decentralized perpetual futures exchange built on its Layer 1 blockchain, currently operating with 16 validators.

In a detailed post on X, Hyperfoundation clarified that all validators on the Hyperliquid network were selected based on their performance during the testnet phase. The organization firmly denied allegations that validator seats can be purchased.

The foundation’s response comes amidst heated discussions on social media and online forums, particularly on X.com. Critics argue that Hyperliquid’s validator setup lacks transparency and decentralization due to the small number of validators and perceived opacity.

> “There is no way to buy a seat at the table, and claims otherwise undermine the efforts of the validators who dedicated time and effort to understanding the system,” the post stated.

Focus on Decentralization

The foundation reiterated its commitment to decentralizing its network, mentioning that the validator pool will expand as the network develops. Currently, the network has 16 validators and has announced a token delegation program to support high-performing validators and enhance decentralization.

In November 2024, Hyperliquid launched its HYPE token through a token generation event and a community airdrop, distributing 31% of the total supply (310 million tokens) to early supporters and active users. After the airdrop, the token price peaked at $35.73 on December 21, 2024, before dropping 40% to around $21 at the time of writing. The market cap of HYPE is approximately $7.3 billion, with a fully diluted valuation exceeding $21 billion. The circulating supply stands at about 333 million HYPE tokens.

Grievances About Code and System

Community members previously voiced concerns regarding the network’s closed-source node code and reliance on a single-binary system. Hyperfoundation acknowledged these worries but defended its approach. “Yes, the node code is currently closed source, but open sourcing is important,” the post stated, emphasizing the importance of safe practices.

The foundation added that Hyperliquid operates at a pace and scale beyond most projects, assuring that the code will be made open source when secure. Regarding the single-binary system, it noted that this is not uncommon, even among established networks. “There is currently one binary, but even very mature networks like Solana have the vast majority of validators running a single client,” the post explained.