Hyperliquid sets 500,000 HYPE stake for permissionless prediction market deployers

Hyperliquid plans to introduce permissionless prediction markets by requiring developers to stake 500,000 HYPE tokens (about $30.4 million) to launch them under HIP-4.

The proposal introduces a capital threshold and slashing mechanism intended to discourage poorly defined or improperly settled markets 

In an announcement, Hyperliquid said permissionless deployment will become available on testnet before expanding to mainnet in a future network upgrade. Validators will vote on standard outcome templates that deployers can use to create markets, while each deployer will initially be limited to 100 outcomes. The allocation will be released for reuse when a market is settled. 

Related: Phantom, Hyperliquid ask CFTC to modernize rules for onchain derivatives

Deployers will be responsible for defining and settling their markets according to the settlement criteria specified in each template. Their stake, which will remain locked for six months, may be slashed through a validator vote if their markets are poorly defined, incorrectly settled or left incorrectly unsettled for more than a week. 

Hyperliquid said permissionless deployment was particularly important because the range of potential event-based markets was significantly larger than the universe of assets suitable for spot or perpetual futures trading. The specifications may change before the testnet release.