Hyper Foundation has responded to criticism over heavy centralization and lack of transparency on the Hyperliquid network. The organization on Wednesday provided detailed explanations about some of the issues on its official X page. 

In the post, Hyper Foundation smashed rumors that the network is collecting money for individuals and organizations to become validators on its layer 1 blockchain. It is worth mentioning that the Hyper Foundation manages Hyperliquid’s decentralized perpetual futures exchange and native layer 1 blockchain network. 

In its response, the foundation emphasized how validators on the network were selected due to their performance during the testnet stage. Similarly, the firm established that validator seats are not for sale and cannot be purchased. 

Hyper Foundation stressed its commitment to ensuring that the network remains decentralized. Likewise, the firm explained that the validator pool will expand as the network matures. 

Criticism against Hyperliquid 

On Tuesday, Kam, a popular crypto and blockchain enthusiast, raised concerns about some critical issues relating to Hyperliquid. Kam pointed out how the current system doesn’t permit competition and sets hurdles for validators that didn’t participate in the testnet. 

The complaints spurred the reaction of dYdX’s CEO, who in a separate post flawed the validator system of the network. The CEO went on to urge Hyperliquid to advance its technical system while admitting that growing projects are bound to face centralization issues as they scale. 

Meanwhile, community members recently complained that the network is rigid and heavily centralized which is against some of its core values. Also, critics alleged that the few number of validators on the network gave room for the heavy concentration of power making the blockchain lack transparency. 

Furthermore, enthusiasts pointed out how Hyperliquid has only 16 validators and demands money before adding more validators to the network. They also complained about issues relating to closed source code and centralized API dependence. 

Recall that in November 2024, Hyperliquid launched its $HYPE ($17.80) native crypto through a token generation event and airdrop. During the campaign, the network distributed 31% of its total supply of 1 billion HYPE to active community members. 

However, the token has endured a sharp decline in the last 24 hours, plunging by 15.85% and currently trading at $21.26. 

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