Validators on the Hyper network have approved a governance proposal to officially recognize a portion of HYPE tokens as burnt. This decision was confirmed by the Hyper Foundation.
HYPE in the Assistance Fund system address of 0xfefefefefefefefefefefefefefefefefefefefe has been formally recognized as burned.
The governance vote was based on stake-weighted consensus, with 85% of stake voting for burning, 7% against, and 8% abstaining. https://t.co/z8x1UyhjMW
— Hyper Foundation (@HyperFND) December 24, 2025
The vote passed with 85% support, 7% opposed and 8% abstained. This result establishes the status of HYPE tokens held in the network's support fund system address. These tokens will now be treated as permanently removed from both circulation and total supply.
Reach consensus through stake-based governance voting
The governance process used a stake-focused voting model. Validators expressed their positions through governance forums. Meanwhile, users can delegate their stakes to validators who align with their views before the final cutoff. Once the voting ended, the network calculated the results based on the total stakes. The majority in favor reflects widespread validator coordination. Importantly, voting did not require any on-chain transactions. Instead, we established a binding social consensus across our entire set of validators. This agreement ensures that future protocol upgrades will not attempt to access the affected tokens.
Support fund structure
The support fund plays a specific role in the design of the hyper-network. Layer 1 is running. Transaction fees will be automatically converted to HYPE and sent to the specified system address. That address starting with 0xfefe works like a zero address. A private key has never been associated with it. As a result, current protocol rules do not allow tokens sent there to be withdrawn or used. The foundation says it is mathematically impossible to access these funds without a hard fork. Still, governance votes explicitly prohibit upgrades aimed at obtaining them.
Burn recognition removes tokens from supply
By approving this proposal, the verifiers have agreed to formally classify the support fund balance as burnt. This means that analysts no longer count tokens in circulation or total supply metrics. This distinction is important for transparency. While the token was already inaccessible, this vote provides clarity on supply accounting and market data tracking. The foundation pointed out that the supply figures reported in recognition of the fires are consistent with economic reality. Locked tokens no longer distort supply calculations as they cannot be moved or consumed by users.
Impact on hypernetworks
This vote strengthens Hyper's governance structure. This shows that validators can adjust around technical and economic decisions without resorting to emergency upgrades. It also highlights growing trends in blockchain governance. Networks increasingly rely on social agreements to formalize outcomes already enforced by code. For HYPE holders, this decision will reduce the effective supply and remove long-term uncertainty regarding the address of support funds. However, the foundation did not comment on the immediate impact on the market. In summary, this governance vote puts an end to a long-standing supply problem. With the help of powerful validators, the hypernetwork has officially locked the circulation of these tokens forever.
