HyperLiquid, the layer-1 blockchain known for its derivatives exchanges, has responded to criticism of an apparent lack of decentralization and issues around validators.
Concerns are at first published by Kam Benbrikan employee at ChorusOne who runs several nodes on different blockchains. Many of the issues stem from HyperLiquid using “closed-source code,” which Benbrik claims “jails” node operators.
HyperLiquid also controls 81% of staked HYPE and this share of control has the potential to trigger a series of negative results.
“If an entity controls 1/3 of the stake, they can stop the chain. If they control 2/3 of the stake, they control the network entirely,” Benbrik wrote.
HyperLiquid wrote its response to Xaddressing fears of decentralization by stating that there will be a “Foundation Delegation Program” that will support validators with good performance thus improving decentralization.
On the subject of closed-source code, HyperLiquid added: “Node code is currently closed source. Open sourcing is important. Projects are open source when development is in a stable state. Hyperliquid ships to orders of magnitudes faster than most projects. The scope is orders of magnitude larger than most projects will also be open source when it’s safe to do so.”
The discussion resulted in the first carvings of negative sentiment around HyperLiquid, a stark contrast to the weeks following the launch of its native HYPE token, which rose from $3.57 to $33.5 in a wave of increasing trading volume.
HYPE has since fallen to $21.49, down 15.37% in just the last 24 hours, according to CoinMarketCap.
