Hyperliquid Introduces Staking Tiers for HYPE Token, Offering Trading Fee Discounts Based on Staked Amounts
Hyperliquid, a decentralized perpetual trading platform operating on its own Layer 1 blockchain, HyperEVM, is announcing the implementation of staking tiers for its native token, HYPE. This initiative aims to provide users with trading fee discounts based on the quantity of staked HYPE. The changes will come into effect on April 30, giving users time to adapt to this new system.
HYPE: Hyperliquid’s Revision of Fee System
The new fee system has several key features:
- Competitive fees: Even without the staking-related discounts, the fees for perpetual contracts and spot trading are lower than those of centralized exchanges for the majority of users.
- Staking discounts: Fee-sensitive users can stake HYPE to benefit from even lower fees than the current system.
- Increased protocol revenue: Projections indicate an increase in revenue for the protocol through this new system.
- Increased utility of HYPE: The HYPE token gains utility, encouraging users to participate more in the ecosystem.
Staking Tiers and Associated Discounts
The staking tiers are structured as follows:
- Wood: Stake more than 10 HYPE – 5% fee reduction.
- Bronze: Stake more than 100 HYPE – 10% fee reduction.
- Silver: Stake more than 1,000 HYPE – 15% fee reduction.
- Gold: Stake more than 10,000 HYPE – 20% fee reduction.
- Platinum: Stake more than 100,000 HYPE – 30% fee reduction.
- Diamond: Stake more than 500,000 HYPE – 40% fee reduction.
Additional Changes on Hyperliquid
In addition to the staking-related discounts, Hyperliquid is introducing separate fee schedules for perpetual contracts and spot trading. Furthermore, spot trading volume will count twice to determine the applicable fee level for the user. Discounts for makers, based on the percentage of total maker volume, and the combination of perpetual and spot trading volumes to determine fee levels remain unchanged.
How Staking Works on Hyperliquid
Staking on Hyperliquid involves delegating HYPE tokens to validators to secure the network and earn rewards. Rewards are accumulated every minute and distributed daily to stakers, with automatic reallocation to staked validators, promoting compounding gains. The annual reward rate is inversely proportional to the square root of the total staked HYPE. For example, with 400 million staked HYPE, the annual reward rate is approximately 2.37%.
The introduction of staking tiers and the revision of the fee system strengthen user engagement and the decentralization of the network. By increasing the utility of the HYPE token, Hyperliquid encourages active participation, ensuring the security and growth of the platform.
