HyperLiquid, a layer-1 blockchain known for its derivatives exchange, is facing criticism over its perceived lack of decentralization and validator fairness. A ChorusOne employee raised concerns about HyperLiquid's closed-source code and its control over a significant portion of staked HYPE tokens.
An employee at node operator ChorusOne sparked concerns over a lack of HyperLiquid decentralization and validator fairness. HyperLiquid said it plans to make code open-source when it is secure to do so and that it has plans to enhance decentralization.
HyperLiquid, the layer-1 blockchain known for its derivatives exchange, has responded to criticism over an apparent lack of decentralization and issues around validators, an employee at ChorusOne which operates several nodes across different blockchains. Many of the issues stemmed from HyperLiquid using 'closed-source code,' which Benbrik claims 'jails' node operators. HyperLiquid also controls 81% of the staked HYPE and this portion of control has the potential to spur a series of negative outcomes. 'If a single entity controls 1/3 of the stake, they can halt the chain. If they control 2/3 of the stake, they control the network entirely,' Benbrik wrote. Addressing the decentralization fears by stating that there will be a 'Foundation Delegation Program' that will support high-performing validators thus enhancing decentralization. On the closed-source code topic, HyperLiquid added: 'The node code is currently closed source. Open sourcing is important. Projects open source once development is in a stable state. Hyperliquid ships at orders of magnitude faster than most projects. The scope is orders of magnitude larger than most projects as well. Code will be open source when it’s secure to do so.' The discussion has resulted in the first etchings of negative sentiment around HyperLiquid, a stark contrast to the weeks that followed the launch of its native HYPE token, which rose from $3.57 to $33.5 on a wave of surging trading volumes.Oliver Knight is the co-leader of CoinDesk data tokens and data team. Before joining CoinDesk in 2022 Oliver spent three years as the chief reporter at Coin Rivet. He first started investing in bitcoin in 2013 and spent a period of his career working at a market making firm in the U
Hyperliquid Decentralization Validators Closed-Source Code HYPE Token
United States Latest News, United States Headlines
Similar News:You can also read news stories similar to this one that we have collected from other news sources.
Bitcoin's Decentralization Under Threat, Ethereum Emerges as a LeaderBitcoin faces growing decentralization concerns, while Ethereum demonstrates a stronger commitment to decentralization.
Read more »
Ranger Finance Targets Crypto Perps Traders of 'Size' on Solana (SOL)Solana's first crypto perpetuals aggregators service wants to compete with market leader Hyperliquid.
Read more »
Ether Overshadows Bitcoin in Volume on HyperLiquid as Platform Activity Hits $500B MilestoneThe record trading activity on HyperLiquid's perpetuals market is characrterized by users recently leaning more toward ether than bitcoin.
Read more »
Hyperliquid (HYPE) Price Soars to New All-Time HighHyperliquid, a decentralized perpetual trading platform, has reached a new all-time high price of $29, driven by record levels of open interest and total value locked. Whale activity and a growing user community contribute to the bullish momentum.
Read more »
Hyperliquid Price Soars to New High Fueled by Record Open Interest and TVLHyperliquid (HYPE), a decentralized perpetual trading platform and Layer 1 blockchain, has reached a new all-time high (ATH) of $29.03 after its recent launch. The rally is driven by record-breaking open interest and TVL, alongside whale accumulation of HYPE tokens.
Read more »
Hyperliquid Soars to New ATH of $29, Fueled by Record TVL and Whale AccumulationHyperliquid's native token, HYPE, has reached an all-time high of $29, driven by a surge in Total Value Locked (TVL) and Open Interest, coupled with notable whale activity. The decentralized platform, launched on November 29, has seen its TVL skyrocket to $3.04 billion, surpassing major blockchains like Sui, Avalanche, and Aptos. Lookonchain data reveals whales accumulating HYPE tokens, further bolstering the bullish momentum.
Read more »