Hyperliquid (HYPE), a major decentralized exchange (DEX), is planning a major upgrade that could change how new projects launch tokens on its platform. The proposal, called HIP-6, creates a framework for permissionless, on-chain token launches, moving away from the off-chain fundraising methods many teams currently rely on.
Details of HIP-6 were shared by James Evans of Reciprocal Ventures. The proposal establishes a permissionless token launch auction for new assets on Hyperliquid, designed for teams that want to issue tokens directly on the exchange. It adapts Uniswap’s continuous auction model to work within Hyperliquid’s central limit order book system, allowing token launches to happen natively on the platform.
Currently, while existing protocols allow for permissionless token deployment and automated liquidity, there are still gaps in capital formation and price discovery. Teams often have to raise funds off-chain, manually provide their own liquidity, or launch into thin order books. This has meant Hyperliquid hasn’t fully matched other high-performance platforms when it comes to initial token offerings. HIP-6 aims to close that gap, though participation will be optional for projects.
By combining capital raising and liquidity seeding into one on-chain process, the proposal seeks to simplify things for founders. Funds raised in the auction would be automatically split between the project and a liquidity pool, reducing operational hurdles and the need for external arrangements.
A key part of the proposal is its approach to price discovery. Instead of a one-time auction, HIP-6 uses a continuous auction that takes place over multiple blocks. This is intended to find a fair market price while reducing last-minute “sniping” tactics common in traditional launches.
The upgrade also aims to strengthen the broader Hyperliquid ecosystem. By creating more use for certain assets, it could increase the total value locked on the platform and generate yield for its community fund.
While HIP-6 addresses how tokens raise funds and establish initial liquidity, it does not dictate long-term value creation or governance. Elements like revenue sharing, staking, treasury management, or voting rights would be left to individual projects. Similarly, protections for tokenholders, such as lockups or transparency requirements, would need to be built on top of the HIP-6 framework.
The goal is to make the initial auction process efficient and fair, leaving post-launch design to the creativity of the Hyperliquid community.
At the time of writing, Hyperliquid’s native token, HYPE, was trading at $27.430, down 3% over the past 24 hours.
Frequently Asked Questions
Of course Here is a list of FAQs about Hyperliquids plans to launch a native token designed to answer questions from beginners to advanced users
Beginner General Questions
1 What is Hyperliquid and what is this new upgrade
Hyperliquid is a decentralized exchange built for fast lowcost perpetual futures trading The new upgrade called Hyperliquid L1 is a major overhaul of its underlying technology and a key part of this upgrade is the introduction of its own native cryptocurrency token
2 So Hyperliquid is getting its own token What will it be called
Yes The native token will be called HL
3 Why do they need a token now
The token will be central to the new more independent blockchain It will be used to pay for transaction fees secure the network through staking and give the community a direct say in governance decisions
4 When will the HL token launch
An exact date hasnt been announced yet The launch is tied to the completion and mainnet release of the new Hyperliquid L1 upgrade You should follow Hyperliquids official Twitter and blog for the announcement
5 How can I get the HL token
Details of the token distribution havent been finalized The team has hinted at rewards for early users and testnet participants Always rely only on official Hyperliquid channels for this information to avoid scams
User Functional Questions
6 Im a current Hyperliquid user How does this affect me
Your trading experience should become faster and cheaper In the future youll use HL to pay for transaction fees instead of other cryptocurrencies You may also be eligible for rewards based on your past activity
7 What can I actually do with the HL token
Pay Fees Use it for trading fees and network transaction costs
Governance Vote on proposals that shape Hyperliquids future
Staking Potentially stake your tokens to help secure the network and earn rewards
Incentives Use it in future liquidity mining or rewards programs