Hyperliquid addresses concerns about validator selection and network centralization

Key Takeaways

Hyperliquid denies allegations of selling proof sets and describes future decentralization efforts, including a delegation program.
Community feedback highlights issues with closed source code and validation selection, prompting Hyperliquid to commit to improvements.

Hyper Foundation denied allegations about its verification selection process for its Hyperliquid perpetuals trading platform and Layer 1 blockchain in a detailed response posted on X.

Critics of X said that confirmation sets were sold out and that the network was too centralized.

Hyperliquid denied these claims, saying that all testers were selected based on testnet performance and that seats cannot be purchased.

The network currently operates with 16 testers, a figure the foundation said will increase as the network grows.

The answer came after Kam Benbrik viral letter on Xwhich criticized issues such as closed source code, reliance on a single API, and limited authentication incentives.

MetaMask security researcher Taylor Monahan, known as Taiwano on X, also reference to the letterhighlighting its wider implications for network transparency and decentralization.

Benbrik urged Hyperliquid to adopt transparent validation selection processes and promote decentralization to compete with Layer 1 blockchains.

Hyperliquid protected the closed source node code and the single binary system as necessary for performance but was committed to making the open source code once stable.

The foundation also outlined plans to support high-performing validators through its token delegation program to reduce dependence on foundation-controlled nodes.

The platform's HYPE token, introduced in November 2024, reached a high of $35 in December before dropping to $21. The token holds a market cap of $7.3 billion with 333 million tokens in circulation.

The foundation acknowledged existing validation challenges, including centralized API trust and limited rewards, and announced plans to improve testnet onboarding processes and improve the selection of validators – mediation.