Hyperliquid Rallies on Tiered Staking System

After a tumultuous month of price action, Hyperliquid’s HYPE token is getting some relief on the back of a new incentivized staking mechanism, which offers stakers discounts on platform fees.

HYPE is up 14% over the last 24 hours, and 6% since the announcement.

The tiered staking system’s initial benefit will be reduced trading fees, which are set to be updated on or after April 30. Traders can save between 5% and 40% on their fees, depending on the amount of HYPE staked.

Hyperliquid’s fees are split amongst the protocol’s market-making HLP Vault and the Hyperliquid assistance fund used to buy back HYPE tokens. The protocol has earned an average of roughly $1.5 million in daily fees over the last month.

“Subtle but important upgrade to $HYPE staking. Creates a strong incentive for large traders on Hyperliquid to buy HYPE if they haven’t already. Is likely the first of many new features coming to HYPE staking that will increase its utility (study BNB),” said Ryan Watkins, co-founder of Syncracy Capital.