Unchained Why Hyperliquid Should Cut Its Total Token Supply Nearly in Half - Ep. 909
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Sep 24, 2025 
In this discussion, Jon Charbonneau, Co-founder and General Partner at DBA, delves into innovative tokenomics. He proposes slashing Hyperliquid's token supply by nearly half and critiques the common misinterpretation of FDV as a valuation measure. Jon reveals how outdated token models hinder project growth and advocates for more accurate assessments of token supply. He also explores the implications of removing max supply caps and the need for transparent community allocations, making a compelling case for a reformed approach to crypto valuations.
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FDV Often Misleads Valuation
- Fully diluted valuation (FDV) often overstates real project value when large authorized-but-unminted allocations exist.
- Adjusted market cap that counts known owner allocations gives a more meaningful valuation.
Fix Token Accounting, Not Protocol Controls
- Change accounting for protocol-held but non-outstanding tokens rather than altering controls or uses.
- Burn assistance-fund HYPE and revoke FECR authorization while removing the max cap to align accounting with reality.
Max Supply Caps Are Usually Cosmetic
- A max supply cap makes sense only when it's a credible, immutable social contract like Bitcoin's.
- Most projects copy a cap from Bitcoin despite it being unrealistic for long-term protocol funding needs.