2026-01-17 06:24:42

Want to gain a deeper understanding of how HYPE operates? Its core is actually centered around two key mechanisms.

First is the asset conversion and destruction cycle. The protocol continuously converts other assets into HYPE and then directly destroys these tokens. The purpose of this design is straightforward—by constantly reducing the circulating supply in the market to maintain the token's value.

Second is the fee feedback mechanism. Half of the Gas fees and transaction fees generated on the L1 chain flow to core participants, then are converted into HYPE and destroyed. In other words, the more active the on-chain activity, the larger the destruction scale, forming a positive feedback loop.

For long-term holders, this design theoretically provides support (continuous destruction creates scarcity) but also carries risks (depending on whether on-chain activity can be maintained). A thorough study of this project's complete economic model is necessary to make an informed judgment.

HYPE2,71%

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LiquidityWhisperer

· 15h ago

Burning, burning, burning, I'm tired of hearing about it... The key is whether the on-chain activity can sustain it; that's the real crucial point. Relying solely on token burning to maintain value? First, see how many real transactions are supporting this logic. Positive feedback sounds good, but if the on-chain popularity cools down, it could be awkward... Continuous influx of new users is necessary. The fee feedback design is pretty good; at least it provides participants with some real incentives, not just empty promises. Wait, how is this different from some burning projects? It seems both are relying on the scarcity of circulating supply as their main tactic. The completeness of the economic model determines success or failure. Whether this project can generate sustainable value depends on what comes next. This kind of design is quite friendly for short-term speculation, but long-term success depends on whether a real ecosystem demand can be established.

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Ser_APY_2000

· 15h ago

The destruction mechanism, I've seen this trick many times, but the key still depends on whether on-chain activity can support it. --- Sounds like just another deflationary token trick... what if activity drops? --- It's interesting, but I really doubt how long this positive feedback loop can last. --- Continuous destruction to create scarcity sounds good, but I'm worried it might eventually turn into an air token. --- Basically, it's a gamble on on-chain activity. In my opinion, we need to look at the actual data. --- I didn't quite understand the fee feedback part. Can anyone explain it? --- No matter how good the economic model looks, without real demand, it's all pointless. --- This design is theoretically perfect, but in practice? It still depends on execution. --- I'm tired of the destruction cycle. The key is whether the ecosystem development can keep up.

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BearMarketLightning

· 15h ago

The destruction mechanism sounds good, but I'm worried about whether activity can sustain it later on. Chain activity is the core, otherwise it's just empty talk. Hmm... feels a bit like a Ponzi scheme? The more active, the more destruction, but how long can the activity level be maintained? I have to say, the design logic is indeed clever, but the risk is really all on the variable of on-chain activity. It looks like scarcity has been achieved, but it depends on whether there's enough ecosystem support going forward. This mechanism is a double-edged sword, betting on whether the ecosystem can come alive. The destruction cycle sounds exciting, but in reality, it still depends on whether the user base can grow.

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MeaninglessGwei

· 15h ago

The destruction mechanism is just a set of schemes; ultimately, it depends on whether on-chain activity can sustain it. It sounds like a rebranding of inflation tax; whether holders can make money depends entirely on the ecosystem's activity level. I just want to know how much the TVL of this broken protocol is now. It doesn't seem very popular. This kind of design carries significant risks. Once on-chain activity cools down, the entire model collapses. It's both destruction and feedback—nice words, but in the end, it still depends on whether the market accepts it.

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nft_widow

· 15h ago

Burning, burning, my ears are getting calloused from hearing it all, but ultimately it still depends on whether on-chain activity can support it. Wait, half of the Gas fees go to core participants? Isn't that just a disguised way of cutting the leeks? HYPE's mechanism sounds pretty good, but how long it can really last is uncertain; it depends on how the ecosystem develops later. To be honest, relying on burning to maintain value is all about mysticism; it still depends on whether there are real application scenarios. Let me do some more research on the economic model; I’m not ready to make a move yet.

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AirdropworkerZhang

· 15h ago

It seems to rely on destruction to create scarcity... but once the on-chain activity drops, it's over.

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