Decentralized exchange HyperLiquid announced the launch of HYPE, a native token that will be airdropped to early adopters on Friday.
One billion tokens will be issued, with 31% going to users who earned points in a campaign that ended in May. A further 23.8% will be set aside for current and future core contributors, the latter of which will be locked for one year.
HyperLiquid has more than 220,000 users and has racked up $2.4 billion in trading volume over the past 24 hours.
Points campaigns have become increasingly common in the decentralized finance (DeFi) sector this year as they incentivize the use of the platform in return for eventual token airdrops. They have even spurred the birth of airdrop farmers, investors who move liquidity from one project to another in order to be eligible for various airdrops.
Unlike a standard governance token, HYPE will have numerous functions including staking capabilities and a payment method for gas fees. Staking HYPE will secure HyperBFT, the proof-of-stake consensus algorithm that powers the HyperLiquid platform.
The token generation event will take place at 07:30 UTC on Nov. 29 and a HYPE/USDC market will be added on HyperLiquid’s spot trading book.