MemCast
MemCast / episode / insight
#ai-hype4#buybacks2#compute-economics5#stablecoin5
Staking HYPE creates a virtuous cycle of lower fees and increased protocol participation
  • Traders who stake HYPE enjoy reduced fees, encouraging higher trading volume.
  • Increased volume raises fee revenue, part of which funds further buy‑backs, boosting token price.
  • The staking model also locks value into the protocol, improving security and aligning long‑term holder interests.
  • This feedback loop is central to Hyperliquid’s sustainable economic design.
JeffBell Curve00:13:13

Supporting quotes

Quote
00:13:13
“Staking is an input into trading fees.” — Jeff
Quote
00:13:39
“You can stake and you have lower trading fees.” — Jeff

From this concept

Token Economics: HYPE vs Stablecoins and Buybacks

Hyperliquid prioritises USDC as the primary trading pair while the HYPE token serves as a utility for fee discounts, governance, and buy-back funding. The token is not positioned as a money-like asset; instead it underpins network incentives and aligns stakeholder interests.

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