In the fast-paced world of crypto, tokenomics—the design and economics behind a cryptocurrency's token—can make or break a project. Recently, Hasu (@hasufl), a prominent strategist at Flashbots and Lido, sparked a lively discussion with a thread on X proposing significant changes to the HYPE token, the native asset of the Hyperliquid DeFi platform. If you're new to this, Hyperliquid is a decentralized perpetual futures exchange built on its own blockchain, and HYPE powers its ecosystem, offering utilities like reduced trading fees when staked.

Hasu's thread, posted on September 22, 2025, highlights a common market misunderstanding: tokens held in a project's treasury (non-outstanding supply) are often mistakenly lumped in with the circulating supply, inflating perceptions of the token's total value and dilution risk. To address this, Hasu and his collaborator Jon suggest slashing HYPE's total supply by 45%, scrapping the fixed supply cap, and switching to a continuous issuance model. This means new tokens would be minted ongoing based on certain rules, rather than having a hard limit.

Here's the opening post that kicked things off: "The market consistently misunderstands tokens with a large non-outstanding supply. To mitigate this, Jon and I propose to reduce HYPE’s total supply by 45%, remove the supply cap, and adopt a continuous issuance model." You can check out the original thread here.

Hasu ties this back to ideas he explored years ago. In a follow-up, he references a 2021 article he co-authored with @MonetSupply, titled "A New Mental Model for DeFi Treasuries." In that piece, available at uncommoncore.co, they argue that native tokens in treasuries shouldn't be treated as real assets. Think of it like a company holding authorized but unissued shares—they don't add real value because issuing them dilutes existing holders. Instead, treasuries should focus on stable assets like USDC or blue-chip cryptos to weather market downturns.

"For me, the frustration over counting treasury tokens into the outstanding supply goes back all the way to 2021," Hasu writes. "The market will learn some day, but the best projects should stop waiting for that and make their own luck."

Diving deeper, Hasu addresses potential concerns, like the need for insurance funds in DeFi projects. He notes that while you could always mint more HYPE under the new model, such funds are better held in stablecoins to avoid volatility. "You can always mint more HYPE, that's 1/3 of the point we are making. But that aside, if you want an insurance fund (which many exchanges have!), it should be held in stablecoins instead."

Wrapping up the thread, Hasu positions HYPE as a case study with broader implications. "HYPE is a perfect case study of this, but its far from the only project affected. We believe this model can become the blueprint for tokenomics going forward." This suggests that if adopted, HYPE's revamp could influence how other tokens, including meme coins, handle supply dynamics to better align with market realities.

Why does this matter for meme token enthusiasts? Meme tokens often thrive on hype and community, but poor tokenomics—like uncapped supplies or misunderstood treasuries—can lead to rug pulls or value crashes. Hasu's proposal offers a more sustainable approach, potentially making projects like HYPE more appealing to serious investors while keeping the fun, meme-like energy alive. It's a reminder that even in the wild world of memes, smart economics can help tokens go the distance.

This move comes amid ongoing debates in crypto about how to value tokens fairly. For instance, non-outstanding supply refers to tokens that are minted but not yet circulating, often locked in treasuries or vesting schedules. Markets sometimes overreact to these, fearing future dilution, which depresses prices unnecessarily. By reducing the total supply upfront and allowing controlled issuance, projects can signal confidence and reduce perceived risks.

If you're building or investing in meme tokens, keep an eye on how HYPE's changes play out—it could set a new standard. Hasu's insights, drawn from years in the space, underscore the need for evolving token models to match maturing markets. What do you think—will this blueprint catch on?