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Hyperliquid unstakes 1.2M HYPE as January 6 team vesting kicks in
Hyperliquid has unstaked 1.2 million HYPE tokens from Hyperliquid Labs as it prepares for the first monthly team distribution under a 24-month vesting schedule. The unstaking took place on Dec. 28, 2025, ahead of a planned Jan. 6, 2026 vesting event. This scheduled release is the first in a series of monthly unlocks intended to distribute team allocations gradually.
What was unstaked and why it matters
Size and supply impact
The 1.2M HYPE equals roughly 0.3% of the protocol’s 420 million total supply. While the release represents a measurable team allocation movement, Hyperliquid has highlighted active supply management mechanisms — including buybacks and previous token burns — designed to mitigate sell-side pressure.
Vesting schedule
Team tokens account for approximately 24% of the overall supply. Under the announced plan, monthly unlocks will occur on the sixth day of each month over 24 months. The company framed the schedule as standard practice in DeFi tokenomics, emphasizing transparency for traders and investors.
Supply management: buybacks, burns and emissions
Daily buybacks and emissions
Hyperliquid reported daily buybacks of about 21,700 HYPE and staking emissions near 26,700 HYPE, resulting in modest net inflation. The protocol also referenced prior defensive measures: in November 2025 a larger unstaking event increased potential sell pressure but was partially offset by 1.9M HYPE in buybacks.
Major token burn
In a significant supply-reduction step, Hyperliquid burned 37 million HYPE from its Assistance Fund earlier this year. That burn has been cited by the team as a key factor in lowering circulating supply and supporting long-term tokenomics.
Market and protocol context
Hyperliquid remains positioned as an on-chain perpetual decentralized exchange (perpetual DEX) that generates revenue and supports continuous protocol activity. Team vesting and scheduled monthly distributions are common in DeFi projects to align incentives and limit abrupt sell-offs. According to the announcement, the vesting actions do not change core protocol mechanics.
Investor takeaway
For traders and long-term holders, the January 6 distribution initiates a predictable cadence of monthly unlocks. Combined with daily buybacks and the prior 37M token burn, Hyperliquid’s approach aims to balance team compensation with controls on circulating supply and sell pressure. Stakeholders should monitor ongoing buyback rates, staking emissions, and monthly unlocks to assess their impact on HYPE liquidity and market dynamics.
Source: crypto
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