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Synthetix founder questions Hyperliquid's fee model and token holder protections.

Protocol Fundamentals
08 Oct 2026
Tokenpost
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Bearish
Synthetix founder questions Hyperliquid's fee model and token holder protections.

Kain Warwick, founder of Synthetix and Infinex, criticized Hyperliquid's fee-sharing model, doubting its ability to support HYPE token buybacks while offering fewer protections than traditional shareholders. He highlighted concerns over the protocol's fee distribution, especially the 50% fee share given to external market builders, which he called unsustainable. Hyperliquid's native token HYPE is used for trading fees and burns, but ownership does not grant legal rights like company shares. The future of token burns and buybacks depends on trading activity and fee allocation, raising questions about the model's long-term viability.

The story about Kain Warwick questioning protections for Hyperliquid’s HYPE holders is presented with Pluang's market data for context. As of Oct 09, 2026 02:31 WIB, only 6 of 50 major cryptocurrencies on Pluang rose while 43 fell. Bitcoin Cash (BCH) was priced at Rp5.011.626 with a 1-day change of -6.87%, VeChain (VET) at Rp134 with a -6.86% change, and Axie Infinity (AXS) at Rp20.372 with a -6.28% change.

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