The Hyper Foundation proposed a validator vote to formally recognize all HYPE held in the Hyperliquid Assistance Fund as permanently burned. Those tokens already sit in a system address with no private key (functionally irretrievable), so no on‑chain transfer is required. If approved, roughly 37 million HYPE (over 10% of supply) would be excluded from circulating and total supply. Validators must signal intent by Dec. 21, 04:00 UTC; token holders can delegate through Dec. 24, 04:00 UTC when the final outcome is determined.

Removing ~37 million HYPE (over 10% of supply) from circulating and total supply via a validator recognition vote is a concrete supply reduction; the tokens are already in a system address with no private key (functionally irretrievable). The proposal has defined deadlines (validator signal by Dec. 21; delegation through Dec. 24) which create a near-term decision window that could affect market pricing.