DBA Founder and Head of Strategy at Flashbots Launch Proposal to "Reduce Total HYPE Supply by 45%"

On September 23rd, Jon Charbonneau, founder of crypto investment firm DBA and crypto blog Uncommon Core 2.0, and Hasu, head of strategy at Flashbots, launched a proposal to "reduce the total supply of HYPE by 45%". The proposal proposes the following changes to the economic model of Hyperliquid: revoke the authorization of all unminted HYPE currently allocated to Future Unlocks and Community Rewards (FECR); destroy, all HYPE currently held in the Assistance Fund (AF), and all HYPE continuously acquired by AF will also be destroyed; remove the maximum supply cap of 10 HYPE. Ongoing token offerings (for example, for staking offerings or community rewards) would increase the total supply. Proponents say Hyperliquid's current ownership of a large number of licensed uncirculated tokens could pose problems, and the proposal would not affect the relative ownership of existing HYPE token holders to the protocol economy, Hyperliquid's ability to fund value-added programs, or the way these decisions are made.
The sponsor of the proposal disclosed that one or more investment funds managed by DBA hold significant positions in HYPE tokens, as do the co-authors themselves. If this proposal enters a formal governance vote and DBA, its affiliates, and/or co-authors are able to participate, all co-authors currently intend to vote in favor (as appropriate).