Reviewing the most successful Airdrop of the year: Hyperliquid, why has it become a textbook for narrative and token economy?

Hyperliquid, with a dual identity of EVM public chain and DEX, has finally distributed an Airdrop recently. This project, which is not backed by VC, distributed 31% of the Token in one go during the Airdrop distribution, and has been soaring since the opening. In the commonly frowned upon year of 2024 for many Airdrop enthusiasts, Hyperliquid's Airdrop distribution may be considered a successful case. Currently, the Token's Market Cap has also surpassed the on-chain Derivatives exchange dydx and Jupiter on the Solana chain.

31% Token creation Airdrop, HYPE is not seen throwing pressure to support rising

On November 28, Hyperliquid officially announced the Airdrop. The TGE of HYPE Token occurred at 07:30 UTC on November 29, and Hyperliquid itself is the only exchange, not providing any chips for listing on the exchange.

And as for the part about token economics:

38.888% for community incentives 31.0% for Genesis airdrop 23.8% for core contributors 6.0% for the Hyper Foundation budget 0.3% for community subsidies 0.012% for HIP-2 (can be understood as providing Liquidity for Hyperliquid)

Hyperliquid is a high-performance Layer 1 blockchain with its own Proof of Stake consensus algorithm, HyperBFT. It can process up to 200,000 transactions per second with a final confirmation time of approximately 0.2 seconds. HYPE will be used for on-chain gas fees and PoS staking.

The announcement emphasizes that there is no allocation for private investors, centralized exchanges, or market makers, which is in line with the narrative of collecting on-chain chips for anti-VC and anti-centralized exchange since the second half of this year. Tokens for core contributors will be locked for 1 year. Most unlocks will occur between 2027 and 2028, with some continuing after 2028. It is worth mentioning that Jeff Yan, co-founder of Hyperliquid, has worked at Hudson River Trading and is therefore very familiar with high-frequency market making.

I love places with fewer people, HYPE points system benefits early users

We reviewed the Airdrop plan of Hyperliquid in detail. The first phase of the Hyperliquid points plan will start on November 1, 2023, and one million points will be distributed to active users every week. The allocation will be determined by the volume. The points from the first phase Snapshot will be distributed on April 15, 2024. Initially, Hyperliquid did not have much mention among Chinese users, so the points in the first few weeks were relatively less competitive. If you miss this phase, retail investors may not be able to compete with large investors and market makers.

The second phase is to distribute 700,000 points per week for four months. In a subsequent announcement on May 29th, the official stated that the points will be doubled during the activity period from May 1st to 28th. The first snapshot time of the second phase covers May 29th to June 4th. In addition, Hyperliquid also has a so-called referral code system, and the official announcement before the Airdrop stated that they will severely punish witch Address.

HYPE has thrown 1.8 billion MOP, making it the biggest Airdrop of the year.

Before the deadline, the price of HYPE Token has been soaring since TGE, reaching about 8.24 magnesium before the deadline, with FDV reaching 8 billion 240 million magnesium, and the circulating Market Cap of 2.79 billion magnesium is all airdrop shares. In comparison, dydX FDV is about 1.28 billion magnesium, while Jupiter FDV is 11.66 billion magnesium. However, some people believe that the trading of this Token is limited to Hyperliquid itself, and the price may be somewhat inflated.

Looking at the TVL of 1.43 billion MEH in Hyperliquid's chain from a different perspective, it ranks tenth among all public chains. It is quite remarkable for a public chain that has emerged within a year and has not received institutional funding. In addition to declaring no VC participation from the beginning, leaving no chips for market makers and exchange listing fees, these features are very appealing to retail investors. By generously distributing 31% of the Tokens to Airdrop players, it is equivalent to building a good relationship with the community, creating topics for the protocol. However, the 31% Airdrop will also be quite substantial for future selling pressure.

The Daily Coin research team also pointed out that Hyperliquid has become the project with the largest Airdrop share after TGE, with a total Airdrop of 1.8 billion dollars. Compared to Starknet's 1.6 billion dollars, Arbitrum's 1.5 billion dollars, dYdX's 1 billion dollars, Wormhole's 1 billion dollars, and Eigenlayer's 850 million dollars.

And recently, the Movement that announced the economics of the coin also indicated that it will provide 10% of the coin for the Airdrop, and it is worth looking forward to the wealth effect it can create. However, the former Scroll researcher also hinted that the Movement provided a large number of chips to the exchange as the coin listing fee, although this has not been confirmed, it also constitutes a warning.

(Coin Circle Eight Points: From Technical Disputes to Macro L2 Value Issues, What Are Rushi and Scroll Former Researchers Arguing About?)

This article reviews the most successful Airdrop of the year: Hyperliquid, and why it has become a narrative and token economic textbook. Originally appeared on ChainNews ABMedia.