Hyperliquid, a decentralized crypto trading platform, has announced plans to introduce the USDH stablecoin through a validator vote, seeking community approval as part of an upcoming network update. During this process, Hyperliquid will employ a transparent, blockchain-based governance model. Additionally, notable reductions in trading fees on the spot market and a transition towards a permissionless structure are on the agenda.
Validator Voting Process for USDH
An official statement from Hyperliquid’s Discord account revealed that the USDH stablecoin is currently held by the protocol. However, with the upcoming network update, validators will conduct an on-chain vote to allow user addresses to purchase this coin. The voting will follow the same mechanism used in delist processes on the network.
Due to USDH being a highly demanded standard ticker, validators will decide which team is best suited to develop a Hyperliquid-first stablecoin issued locally. Teams wishing to apply can submit their proposals, including user addresses, via the newly opened forum. Even after approval, selected teams will be required to participate in the spot gas auction distribution process.
Through this arrangement, the USDH coin will be determined via a community-based process. This ensures a decentralized selection mechanism for stablecoin initiatives.
Fee Reductions and Staking Requirements in Spot Markets
The new update will reduce trading fees by 80% in trading pairs created between two spot transfer assets. In addition, market maker incentives and user trade volume contributions will be incorporated into the system. These adjustments are expected to enhance market depth.
Moreover, the spot transfer assets will be fully transition to a permissionless structure in the future. This shift will initially be implemented on the test network before being transferred to the main network. Furthermore, staking requirements and certain slashing criteria will be announced. Increasing the responsibilities of validators will be mandatory for network security.
These changes introduced with the network update will reduce transaction costs while strengthening the role of validators. The process will establish new standards for both users and teams.
