Hyperliquid has opened a short proposal window for teams to claim the USDH ticker and launch a native stablecoin on its L1 network, touching off a debate over fairness and governance.
The foundation’s Discord post asks validators to choose a team that will build a Hyperliquid-first, compliant USD stablecoin. Validators have five days to vote; once quorum is reached the ticker is unlocked and assigned to the winning deployer address.
Three proposals appeared quickly. Native Markets proposed a GENIUS Act–compliant design with fiat gateways and pledged reserve proceeds to the Hyperliquid Assistance Fund. An already launched protocol, Hyperstable, pushed back, saying the USDH ticker was previously blocked and that teams were forced to use USH instead.
Hyperstable’s author argued changing the blacklist after projects launched is “unfair.” Other community members raised concerns about timing: investigators flagged that Native Markets’ deployer wallet was funded only hours before Hyperliquid’s announcement, and some pointed out the Hyper Foundation validators control more than 60% of staked HYPE.
Supporters of opening the ticker note the regulatory landscape changed after the GENIUS Act became law, which alters compliance requirements for stablecoins. The debate comes as many institutions and platforms explore new dollar-pegged tokens.
Why it matters: the process highlights governance centralization risks and possible conflicts of interest when protocol foundations hold large validator stakes. Voters should weigh technical design, compliance plans and reserve transparency before choosing a USDH issuer.
Source: Decrypt. Read the original coverage for full details.