Hyperliquid’s $1B Assistance Fund retention vote occurred on September 14, 2025, with Native Markets winning the mandate to manage USDH stablecoin yields, contributing to HYPE buybacks.
The decision affects Hyperliquid’s governance, emphasizing decentralization through validator participation, while enhancing HYPE’s market positioning via increased buy pressure without sidelining financial support structures.
The recent governance vote by Hyperliquid aimed to determine the fate of the $1 billion Assistance Fund. This was a crucial decision, impacting the ecosystem’s direction and its financial strategies.
Native Markets emerged as the winner of the September 14th vote, with a task to issue and manage the USDH stablecoin. The revenue generated is committed to feeding the Assistance Fund and HYPE buybacks.
Hyperliquid Grants Native Markets $1B Fund Management
Controls ~60-65% of staked HYPE; committed to abstain and follow non-Foundation validator consensus for decentralization. [source]
Enhanced HYPE Demand Anticipated After Vote
The decision strengthens the Assistance Fund’s role, maintaining consistent buyback pressure for HYPE tokens. Market observers have noted a likely amplification in demand for HYPE, thanks to robust fund-backed strategies.
The additional $220 million annual yield from the USDH stablecoin will potentially enhance HYPE’s financial health. Some analysts see this as reinforcing the organization’s decentralization commitments, following Hyperliquid Foundation’s abstention strategy.
First Attempt at Decentralized Governance for Hyperliquid
This governance vote marks Hyperliquid’s first significant attempt at decentralized decision-making. Unlike larger blockchain networks, the smaller validator set played a tangible role, raising questions about similar future experiments.
Experts from Kanalcoin see the successful governance vote as a testament to community engagement. They believe it could set a precedent for other DeFi projects seeking enhanced decentralization in asset management strategies.
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