Why Hyperliquid Should Cut Its Total Token Supply Nearly in Half - Ep. 909
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Companies
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Key Quotes
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Topics
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Insights
🏢 Companies Mentioned
USDH
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Institution
So I
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Evan Van Ness
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Like I
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Haseeb Qureshi
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Bybit LaunchPool
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P Reward Station
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Meef Protocol
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Mantle Network
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And I
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Girls Club
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Nate Bargatze
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In Bitcoin
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Like I I
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Community Rewards
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💬 Key Insights
"The simplest example would be you could have a token where the team owns a bunch of tokens and they're all going to 100% unlock tomorrow and they're going to become fully liquid. The circulating market cap, if you go check CoinMarketCap or CoinGecko or whatever, won't include those, which is just very obviously like the wrong metric to kind of be thinking about if you're owning this token if like these tokens are owned and like they're going to hit supply immediately."
"So you probably want to have a stable asset, at least in the ideal case. And so there's a very separate, reasonable conversation of, you know, should we have like USDC accumulated or USDT or USDH or like whatever in the treasury reserve such that we would have a stable asset to cover these things as opposed to buying back Hyperliquid?"
"The problem is is that many projects in crypto have a just sort of, you know, baseline just how we copy-paste the thing before us. And so there ends up being a lot of just copying over this idea of a max supply cap when the problem is it made sense for Bitcoin, but it actually doesn't make sense for pretty much anyone else because that's like obviously not the reality."
"Spending tokens on growth is fine, just do what transparently and justify it. Go to governance, argue for the supply expansion, and let holders decide."
"And so that is the main difference of like circulating market cap versus the kind of adjusted market cap that I generally use for something like Hyperliquid is the circulating supply something in the 15 to 20 billion dollar range, and like 15—what I consider to be the most relevant number is generally around double that because I think you need to include the team supply and stuff like that in there, all of that. Like those are like known tokens."
"In particular, like Bitcoin, you know, you like taking what is the max supply cap of Bitcoin makes sense because we know that we're going to get to 21 million. There's a designated plan to account for that supply that is going to come on board. Um versus in the cases where you have an FDV that has a large component of that which is either owned explicitly by the treasury, something like the assistance fund, or doesn't have a designated plan, you you should not count those in the valuation."
📊 Topics
#artificialintelligence
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#investment
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#startup
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