Hyperliquid Defends Validator Setup Amid Transparency Calls | Airdrop Alert Pro

Hyperliquid (HYPE) has been at the center of heated debate over its validator setup. Critics have raised concerns about the platform’s lack of transparency and decentralization, accusing the network of selling validator seats and operating with a limited number of validators.

The accusations have sparked widespread discussion on social media, especially on X (Twitter), where community members are scrutinizing the network’s operations and governance. Hyperliquid is a decentralized exchange (DEX) that, unlike most competitors, runs on its own blockchain

Validator transparency issue around superliquids

Community members expressed dismay at the network’s closed-source nature node code and its dependence on a single binary system. Critics argue that these practices hinder transparency and encourage centralization. In response, Hyperliquid acknowledged the concerns while defending its current practices.

“Yes, the node code is currently closed source, but open source is important,” DEX point out in the post.

However, it emphasized that it plans to make the code public once it reaches a safe and stable state. For single-binary systems, Hyper Foundation notes that this approach is not uncommon, even in mature networks.

“Currently there is only one binary, but even very mature networks, e.g. Solana The vast majority of validators run a client,” the post clarified.

Additionally, in response to criticism, Hyperliquid released a detailed statement about X, clearing up misunderstandings about its validator settings:

• All validators are qualified based on testnet performance and there is no option to purchase validator seats.
• The Foundation Delegation Program will soon support high-performance validators and further decentralize the network.
• Anyone can run an API server pointing to any node, ensuring flexibility and accessibility.
• We are working hard to enhance the testnet launch and prevent the creation of a black market for testnet HYPE tokens.

Hyperliquid emphasizes that its validator set will expand as the network matures, ensuring the infrastructure is more decentralized and resilient. The foundation reiterates its mission to bring all finance on-chain, with the community playing a vital role in the development of the ecosystem.

Superliquid past controversies

This isn’t the first time Hyperliquid has faced scrutiny. Two weeks ago, the network Denies accusations of possible hacking by North Korea’s Lazarus Groupeven though on-chain evidence suggests otherwise.

Additionally, Hyperliquid has faced criticism for its token price volatility and massive capital outflows Amid hacker-related fears. According to BeInCrypto, $60 million worth of HYPE tokens recently left the platform, while the token value fell.

However, in hindsight, Hyperliquid launched the HYPE token through a token generation event (TGE) and community airdrop in November 2024, Setting new DeFi standards. The airdrop distributed 31% of the total supply, equivalent to 310 million tokens, to early backers and active users.

After the airdrop, the token price surged, reaching an all-time high of $35.73 on December 21, 2024. But it has since fallen by about 40%.

BeInCrypto data shows that as of this writing, HYPE is trading at $21.12, down nearly 20% since Wednesday’s opening.

Currently, HYPE has a market capitalization of approximately US$7 billion, with a fully diluted valuation of over US$21 billion. The circulating supply is approximately 333.93 million pieces, including 5% of HYPE TVL locking For distribution in the community.