According to TechFlow, on December 17, Hyper Foundation officially proposed a validator vote to confirm that HYPE tokens in the Assistance Fund are considered permanently destroyed, removing them from circulation and total supply. The Assistance Fund, part of L1 execution, automatically converts transaction fees into HYPE via a system address (0xfefefefefefefefefefefefefefefefefefefefe), which is akin to a zero address with no private key and no access without a hard fork. A 'Yes' vote would mean validators agree to treat the HYPE in the Assistance Fund as destroyed and commit to never authorizing protocol upgrades that access the address. Voting will take place on the governance forum until 04:00 UTC on December 21, with users able to stake support for validators until 04:00 UTC on December 24. The final result will be determined by staked-weighted consensus at that time.
Hyper Foundation Proposes Permanent Destruction of HYPE Tokens in Assistance Fund
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Summary
KuCoin fees will be impacted by a proposed KuCoin system upgrade as Hyper Foundation moves to permanently destroy HYPE tokens in the Assistance Fund. Validators will vote on treating these tokens as destroyed, removing them from circulation. The system address, with no private key, will remain inaccessible without a hard fork. Voting ends December 21, with staking support closing on the 24th. Final approval depends on staked-weighted consensus.
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