Research Summary
The report discusses the shift in token distribution in the blockchain industry, focusing on the community-oriented L1 blockchain, Hyperliquid. It highlights the platform’s unique features, its growth without VC funding, and its potential to revolutionize the on-chain landscape.
Key Takeaways
Token Distribution Shift
- Change in Token Distribution: The report notes a shift in the blockchain industry’s token distribution, with a majority of price appreciation now occurring in private markets. This has led to predatory unlock schedules, potentially harming new investors.
Hyperliquid’s Unique Approach
- Community-Oriented Approach: Hyperliquid, a performant L1 blockchain, has adopted a community-oriented approach, amassing thousands of users without any VC funding. This approach has led to early successes and could potentially change the paradigm of token launches.
- Hyperliquid’s Features: Hyperliquid offers a range of features, including high leverage, competitive trading fees, multiple order types, and a lucrative referral system. It supports 20k orders/second, enabling gas-free transactions and quick finality.
Hyperliquid’s Future Developments
- Future Developments: Hyperliquid plans to introduce a new consensus mechanism, HyperBFT, which will significantly improve transaction processing speed (TPS), sequencing, and latency. This will allow Hyperliquid to support use cases that cannot be implemented on other EVM-based chains.
Hyperliquid’s Potential
- Hyperliquid’s Potential: The report suggests that Hyperliquid’s community-oriented approach and innovative technology could make it a competitive player within the L1 ecosystem. It also highlights the platform’s potential to attract builders and users alike.
Actionable Insights
- Monitor Hyperliquid’s Developments: Given Hyperliquid’s potential to become a competitive player within the L1 ecosystem, it would be beneficial to keep an eye on its future developments, particularly the introduction of the HyperBFT consensus mechanism.
- Consider the Community-Oriented Approach: Hyperliquid’s success without VC funding suggests that a community-oriented approach can be effective in the blockchain industry. Other platforms may want to consider this approach when planning their token distribution.
- Research the Potential of On-Chain Perps: The report notes the growth of on-chain perps as one of the largest sectors within the on-chain landscape. This suggests potential growth opportunities in this sector, which warrants further research.
