Hyperliquid: Financials

Hyperliquid Financials

Network revenue on Hyperliquid consists of Real Economic Value (REV) on HyperEVM and trading fee revenue on the trading platform (HyperCore).

Network REV is a standardized metric that tracks blockchain value accrual generated by user activity. REV consists of both in-protocol transaction fees and out-of-protocol tips that users pay for transaction execution, so it measures the monetary demand to transact on a general-purpose chain. All transaction fees are paid in HYPE and burned.

Trading revenue on HyperCore consists only of the amount earmarked to the Assistance Fund, which is currently 93% of total trading fees. The remaining 7% is distributed to the HLP vault, a liquidity provider mechanism, and is not included as revenue.

Hyperliquid Financials

Network Revenue

The total amount an ecosystem generates from operations before any operator payments are deducted.

• Trading Platform (HyperCore): Trading revenue on HyperCore is presented net of the 7% of fees distributed to the HLP vault. The remaining 93% of trading fees, which are earmarked for the Assistance Fund, are considered revenue.
• HyperEVM REV: Network REV (Real Economic Value) is the measure of user demand to transact with generalized blockspace. It consists of all transaction fees and out-of-protocol tips paid for transaction execution. In the case of Hyperliquid, there are no out-of-protocol tips, so all REV is generated by in-protocol transaction fees, of which there are two types.
  • Base Fee: The minimum fee required for a transaction to be included in a block, dependent on network congestion.
  • Priority Fee: An additional fee paid to prioritize a transaction within a block.

Network REV does not include any Token Issuance.

Operator Payments

Payments to operators refer to the value allocated to the infrastructure providers responsible for running the network, such as miners or validators. These payments generally cover the real-world costs of maintaining the network plus some margin to incentivize participation. These are independent operators with unique setups, so operator payments are not uniform across the operator set. Therefore, Operator Payments are the amount of value that does not flow to token holders.

In this model, inflation is not a cost in its entirety. Only the portion that does not flow to token holders is a cost. The portion that does flow to token holders is simply a value transfer from non-stakers to stakers. From the perspective of the aggregate token holders (stakers and non-stakers), only the value distributed to Operators is a cost to the token holders.

Hyperliquid validator operators are compensated via commission on new token issuance. In practice, the commission ranges from 0-4%.

Token Holder Net Income

Token Holder Net Income = Network Revenue - Operator Payments. It measures the value that accrues to the token holders after considering payments to operators.