HyperLiquid team announces plans to increase the decentralization of the project

What’s new? The team of the decentralized crypto exchange (DEX) of perpetual futures HyperLiquid on its own blockchain of the same name issued an appeal to clarify the situation with validators and also promised to open the source code of nodes when it can be done without jeopardizing the security of the project. The developers emphasized that the performance of validators was evaluated in the testnet and no one in the network could buy validator status.

Source: X.com

What else is known?

“There is no way to buy a seat at the table. Claims otherwise undermine the efforts of the validators who dedicated time and effort to understanding the system. As with all blockchains as they mature, the validator set will increase over time,” HyperLiquid emphasized.

At the same time, the team recognized that some users are trying to form a black market for HYPE native tokens issued in the testnet. The developers called such actions unacceptable and promised to improve the selection process of testnet participants.

The team also reminded that the Foundation Delegation program will soon be launched to support high-performance validators and further decentralize the network. In addition, any user will be able to run the API server on any node.

Earlier this week, the community expressed concerns about the centralization of the project and the lack of transparency of the HYPE token, as well as the closed source code and centralized API. As a result, the HYPE exchange rate fell 18% overnight and reached its lowest level since December 14 at $21,24.

The discussion was initiated by a user popular in the crypto community under the nickname KamBenbrik. In his X-account, he wrote that the platform’s validator structure is overly centralized and closed to wider participation.

He also argued that the current system limits competition and creates barriers for validators beyond the original testnet participants.

HyperLiquid previously saw a large outflow of deposits in Circle’s USDC stablecoins, which are used on the platform as collateral. The outflow started after the crypto community warned that DPRK hackers were making trades on the platform to find vulnerabilities.

Later, the Hyperliquid team launched HYPE staking. Overall, the asset has risen in price by 66% since its launch in late November.