Hyperliquid Commits $29M HYPE to HPC to Shape DeFi Policy in DC

• Hyperliquid donates 1M HYPE to launch the Hyperliquid Policy Center (HPC) in DC.
• The initiative aims to strengthen DeFi advocacy and reduce regulatory uncertainty facing the protocol.
• Attention now shifts to added token float, potential treasury selling, and policy outcomes.

Hyperliquid is unstaking and donating 1 million HYPE tokens, approximately 0.39% of the 259.05 million tokens currently in circulation, to launch the Hyperliquid Policy Center (HPC) in Washington, D.C. At press time, HYPE was trading at $28.72, valuing the grant at roughly $28.72 million.

Hyperliquid Makes Calculated Trade-Off Between Dilution and Influence

Hyperliquid’s decision reflects a strategic trade-off: accepting a small, measurable increase in liquid supply today in exchange for potential regulatory upside over the long term. With a market capitalization of around $7.44 billion and a maximum supply of 961.67 million HYPE, the 1M token allocation represents only about 0.10% of the maximum supply, limiting its impact on the broader token base.

For a top-tier DeFi derivatives protocol, regulatory risk in the U.S. remains material. Allocating approximately $28.7 million to establish a direct policy presence can be viewed as an investment in shaping how future rules are written, rather than reacting after enforcement frameworks are set.

From a tokenomics perspective, the most direct effect is a modest increase in liquid float. Unstaking 1M HYPE moves those tokens into active circulation, lifting the tradable supply by approximately 0.39%.

If the policy center were to sell its allocation at current prices, the potential $28.72 million overhang equates to about 15.9% of today’s trading volume of $180.7M. In normal market conditions, that scale is generally absorbable over time, provided sales are paced rather than concentrated.

The ultimate impact of the donation depends on execution. Policy outcomes are slow, uncertain, and often disconnected from short-term price action, meaning there may be a long lag between this 0.39% increase in circulating supply and any visible regulatory benefit.

According to Jake Chervinsky, the CEO of HPC, the newly formed policy center focused on Hyperliquid’s growth in the United States is hiring for several roles, including head of government relations. According to the Hyperliquid team, Chervinsky will play a crucial role in catalyzing the organic growth of DeFi in the United States.

Hyperliquid said the tokens would be unstaked later in the day, adding that establishing representation in Washington, D.C., would benefit the community. The team expressed confidence that under Chervinsky’s leadership, the Hyperliquid Policy Center would help advance clear regulations for decentralized finance.

Related: Hyperliquid Overtakes Coinbase With $2.6T Trading Volume