Hyperliquid Eyes HYPE Token Recovery with Massive Burn ProposalAltcoinCRYPTO:ALTCUSDCryptoLifeoneThe Hyper Foundation has submitted a proposal to burn all HYPE tokens in the Assistance Fund. If Hyperliquid validators agreed to burn, it would reduce both the circulating and total supply. This will trigger a recovery in HYPE price. On December 17, the Hyper Foundation announced the Assistance Fund HYPE token supply burn proposal. The foundation requires validator voting on the proposal to proceed with the burn mechanism. It likely comes to solidify confidence in Hyperliquid and HYPE price, which has dropped more than 50% in a few months. The Assistance Fund plays a crucial role in the Hyperliquid ecosystem by automatically converting trading fees into HYPE tokens as part of the L1 execution. These tokens are stored in a special system address (0xfefefefefefefefefefefefefefefefefefefefe), which, like the zero address, has never had a private key or control over the funds in the address. As a result, these tokens are irretrievable unless a hard fork is executed. If passed, the current 37 million HYPE and all future tokens in the address will be burned from the total supply. The current tokens represent almost 13% of the circulating supply. Validator Voting Timeline and Governance Process The validator voting will decide whether the tokens held in the Assistance Fund address should be burned or not. A “Yes” vote would mean validators agree to treat these tokens as permanently removed from circulation. The Hyper Foundation also mentioned that the vote will cement a consensus to never authorize any protocol upgrade that could access the locked tokens. Validators are required to express their vote in the governance forum by December 21 at 04:00 UTC. Users can then stake to validators who align with their perspective until December 24 at 04:00 UTC. The final outcome will depend on a stake-weighted consensus measured at the close of voting on December 24. Some validators, such as the Kinetiq x Hyperion, have even voted in favor of the proposal to burn all tokens in the Assistance Fund address. HYPE Token Price Gains Community Reactions The Hyperliquid community expects the burn to trigger a recovery in HYPE price by reducing its supply, boosting overall confidence in Hyperliquid. As the voting deadline approaches, the community is watching closely, anticipating a positive shift in token dynamics. As CoinGape reported earlier, the launch of the first spot Hyperliquid ETF in the U.S. is also near, as Bitwise amended S-1 for its Hyperliquid ETF. It revealed a management fee of 0.67% and BHYP as the ticker symbol. HYPE price jumped 2% after the Assistance Fund HYPE token supply burn proposal, currently trading at $26.66. The 24-hour low and high are $26.21 and $28.02, respectively. However, trading volume has dropped by 5% over the last 24 hours. CoinGlass data showed massive buying in the derivatives market. At the time of writing, the total HYPE futures open interest jumped 3% to $1.52 billion in the last 24 hours. The 4-hour HYPE futures open interest has climbed almost 4%, with a more than 5% jump on both CME and Binance.