Hyperliquid is entering a critical moment. The project’s first major cliff unlock since its Token Generation Event (TGE) in November 2024 is scheduled for November 29, and the market is already reacting.
Roughly $308M worth of HYPE, representing 2.66% of circulating supply, is set to unlock for the protocol’s core contributors.
This is the first time team tokens will hit an unlocked state since genesis. The original vesting terms locked all core contributor allocations for one full year, with most schedules extending deep into 2027–2028. But recent on-chain activity has sparked confusion, speculation, and fear across the market.
Here’s what is confirmed, what remains unclear, and what the data actually suggests.
First Unlock Since TGE Brings $308M in HYPE to Circulation
Hyperliquid’s one-year cliff has been known since launch. Tokens reserved for core contributors were locked for 12 months and structured to vest over multiple years depending on contribution timeline.
On November 29, the first batch, approximately 2.66% of circulating supply, becomes eligible for release. Valued at roughly $308 million, it represents a high-stakes moment for a project that has been aggressively expanding its ecosystem and community since TGE.
The unlock follows Hyper Foundation’s original vesting framework:
- 1-year lock for core members
- Majority of vesting finishing in 2027–2028
- Some allocations extending even further
This means the November 29 unlock is substantial, but far from the “continuous $300M monthly unlock” narrative circulating online.
.@HyperliquidX ‘s first cliff unlock is scheduled for Nov 29: $308M worth of $HYPE (2.66% of circ. supply) from core contributors.
This will be the initial unlock since TGE in Nov 2024. According to their Medium post, core contributor tokens were locked for 1 year post-genesis,… pic.twitter.com/zyqhfPDZ8O
— Tokenomist (@Tokenomist_ai) November 23, 2025
On-Chain Movements Raise Questions, 2.6M HYPE Unstaked
Around 29 hours ago, on-chain analyst @mlmabc flagged a major movement: 2.6M HYPE, roughly $85.8M, was unstaked by the Hyperliquid team.
This unstake event triggered immediate speculation. Many traders interpreted the activity as preparation for selling, contributing to rising FUD and a steep drop in sentiment.
But unstaking isn’t selling.
Not in Hyperliquid’s system. Not in token economics. Not in practice.
Unstaking simply means the tokens are no longer locked inside staking contracts. It doesn’t determine what comes next, whether tokens move to OTC, team wallets, BLP strategies, or remain untouched.
Still, the timing, just days before the first cliff unlock, pushed fear into the market.
The Hyperliquid team (Hyperliquid Labs) just queued to unstake 2.6M HYPE
Few things we know:
The Hyperliquid team does NOT plan to leave their tokens untouched like Satoshi’s BTC
The team is NOT unlocking / selling $300M+ of tokens a month:
– Most of the HYPE unlocks models… pic.twitter.com/6ijgXRX1xn
— Luke Cannon (@lukecannon727) November 22, 2025
Market Reacts With FUD, But the Narratives Don’t Match the Data
Over the past 24 hours, sentiment has turned decisively bearish. Social channels are filled with claims of aggressive team distributions, giant monthly unlocks, and plans to offload hundreds of millions in HYPE.
But almost all of these claims contradict Hyper Foundation’s own published vesting model.
Here’s what the data actually shows:
- Most unlock models circulating online are incorrect
Many third-party models assume that:
- Team tokens vest linearly over 2 years
- With a single 1-year cliff
- Totaling ~9.9M HYPE ($315M) unlocking monthly
But this directly contradicts Hyper Foundation’s documentation, which clearly states:
Most vesting schedules do not end until 2027–2028 and some last even longer.
This means the structure is not a 24-month linear unlock.
It is a multi-year staggered system tied to contributor join dates and long-term ecosystem needs.
- Each team member likely has their own vesting timeline
Based on the internal structure described by Hyperliquid, each contributor appears to be vesting over their own two-year linear schedule depending on hire date.
This implies:
- Many tokens haven’t even started vesting
- A large percentage is still reserved for future contributors
- Only a portion of existing team tokens are eligible at the cliff
This alone invalidates the idea of a $300M monthly unlock cycle.
- The 2.6M HYPE unstake may represent only half of current contributors’ unlock
If all 2.6M HYPE unstaked covers the initial unlock for roughly half of the team, this suggests:
- Nearly 50% of team tokens remain unallocated or unvested, reserved for future contributors.
This aligns with Hyperliquid’s rapid expansion and long-term scaling roadmap.
So What Happens to the Unlocked Tokens? Still Unclear
The biggest question now is: What will core contributors do with their newly unlocked HYPE?
Right now, there is no official clarification.
However, several possibilities exist, each with precedent or speculation tied to Hyperliquid’s ecosystem:
1. OTC Sales
Hyper Foundation has previously used OTC channels.
If this route is used again, it would minimize on-market impact.
2. BLP Participation
Hyperliquid is rumored to be developing a native cross-margin protocol (BLP).
Unlocked HYPE may be used to provide liquidity or collateral.
3. HyperEVM DeFi Usage
Tokens could be moved into upcoming HyperEVM liquidity programs or DeFi integrations.
4. Tokens Simply Move to Individual Wallets
Team members could distribute tokens to personal wallets and hold.
This has happened in many ecosystem unlocks across the industry.
5. Partial Selling on Market
Always a possibility, but nothing indicates mass sell pressure.
What We Know, What We Don’t, and What the Market Misread
What we know for sure
- First cliff unlock happens November 29
- ~$308M HYPE becomes eligible
- 2.6M HYPE was unstaked in advance
- Vesting DOES NOT follow a 2-year linear model
- Most team tokens vest 2027–2028 or later
Many assumptions online are wrong
What we don’t know
- How much will be sold
- How tokens will be used across BLP or HyperEVM
- Whether OTC channels will handle distributions
What the market misread
- Fear has been driven by incorrect unlock models and conflation between “unstake” and “sell.” The event is significant, but the scale of expected selling is being massively overstated.
Conclusion: A Major Unlock, But Not the Doom Scenario Traders Expect
Hyperliquid’s first cliff unlock is undeniably a critical moment for HYPE.
$308M in tokens entering circulation is substantial.
The 2.6M HYPE unstake drew attention.
And the lack of official guidance has fueled anxiety.
But the broader narrative, the idea that $300M+ in tokens will unlock monthly, is simply incorrect.
Hyperliquid built its vesting schedule for long-term alignment.
Most core contributor tokens are still years away from vesting.
Many future contributors haven’t even received allocations yet.
The November 29 unlock is important, but it is not the liquidation waterfall some fear.
Disclosure: This is not trading or investment advice. Always do your research before buying any cryptocurrency or investing in any services.
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