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Native Markets Secures USDH Ticker Following Hyperliquid Governance Vote

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In brief

  • The startup beat out Paxos, Ethena, and others, with validators and prediction markets pushing odds to above 90% before the vote.
  • Native Markets’ proposal splits reserve yield between Hyperliquid’s Assistance Fund and growth, with reserves managed via Bridge, BlackRock, and Superstate.
  • The next test for USDH would be whether it could break the dominance of USDC and USDT, Decrypt was told.

Native Markets was awarded the USDH stablecoin ticker on Sunday, following a governance vote among Hyperliquid validators.

The newly formed firm edged out established bidders after prediction markets and validator commitments swung heavily in its favor, capping one of the most closely watched governance decisions in crypto this year.

Ethena, once considered a strong challenger, withdrew from the race on Thursday. The firm cited feedback from validators and community members questioning whether its proposal, anchored in its existing non-native infrastructure, met the spirit of the competition.



Its exit further pushed prediction odds on Myriad for Native Markets above 90% and effectively cleared the path, with Paxos left trailing despite revising its proposal midweek.

Disclosure: Myriad Markets is owned by Decrypt’s parent company Dastan.

Despite the broad concurrence, the voting process drew criticism.

Observers argued the compressed request-for-proposals timeline, combined with validator ties to existing Hyperliquid infrastructure, tilted the playing field in favor of Native Markets.

Max Fiege, founder of Native Markets, outlined a phased rollout in a statement on Sunday.

The first step will be the introduction of a Hyperliquid Improvement Proposal, after which mints and redeems of USDH will begin in a controlled trial.

Early participants will be capped at about $800 per transaction to stress-test the system. Once initial checks are complete, the USDH/USDC spot order book will open on Hyperliquid, followed by full minting and redemption functionality for all users.

With Native Market securing the USDH ticker, the closely watched governance vote “cements Hyperliquid as a fast-growing ecosystem” but also shows the “intensifying stablecoin competition,” Vincent Liu, chief investment officer at Kronos Research, told Decrypt.

Governance-led moves and fresh liquidity being poured into Hyperliquid show that “stablecoins remain central to crypto’s next phase of global adoption,” Liu added.

Native Markets had been the frontrunner throughout the contest. Its proposal emphasized a native alignment with Hyperliquid: cash reserves and U.S. Treasuries managed by BlackRock off-chain.

Tokenized reserves, meanwhile, will be handled on-chain by Superstate through Bridge, Stripe’s stablecoin infrastructure provider.

The team also pledged to split all reserve yield equally between Hyperliquid’s Assistance Fund and ecosystem growth.

Backers include operators and investors with track records at Uniswap Labs, Paradigm, and Polychain. These elements, combined with early validator endorsements from groups such as CMI Trading, gave Native Markets a decisive advantage.

Still, USDH’s biggest test will be “breaking through the dominance of USDC and USDT, where adoption and liquidity remain king,” Liu noted.

“Transparency around reserves and strong, unified governance will be vital to win lasting trust,” with its future prospects highly dependent “on proving it can compete while maintaining stability,” he added.

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Hyperliquid Validators to Decide USDH Ticker in First Governance Test Following Pushback

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In brief

  • Validators will decide the USDH ticker in an on-chain vote scheduled for September 14.
  • Hyperliquid claims the ticker carries no special privileges, while analysts see it as a push to reduce reliance on USDC.
  • Analyst estimates suggest USDH could divert $5.5 billion from USDC and generate $220 million annually for HYPE holders.

Hyperliquid, a decentralized exchange and Layer-1 chain, is slated to place the USDH ticker through a validator vote this month, testing the role of onchain governance in shaping its stablecoin strategy.

In an update posted Sunday to clarify guidelines, the team behind Hyperliquid said the vote concerns only the ticker and does not grant USDH “any special privileges by nature of its ticker name,” adding that USDH “will be only one of many such stablecoins” for its chain.

USDH is the project’s proposed native U.S. dollar stablecoin, intended to serve as an alternative to bridged assets like USDC.



The proposal deadline is September 10 at 10:00 UTC, with validators expected to declare by September 11 before voting takes place on September 14 between 10:00 and 11:00 UTC.

Hyperliquid also said that quote assets, the base currencies used to denominate trading pairs, will become permissionless after upcoming technical upgrades, allowing anyone to create new pairs without approval.

It’s worth noting that the Foundation’s validators will abstain from the vote by aligning with whichever team secures the most non-Foundation support, a mechanism meant to reduce perceptions of centralized influence while keeping the process stake-based.

Still, the vote comes amid unease from some existing stablecoin teams on Hyperliquid, who argue that reopening the USDH ticker risks disadvantaging protocols that were previously forced to build under different names.

Testing opposition

Observers told Decrypt the USDH vote could be a test of Hyperliquid’s effort to use governance to reduce stablecoin dependence.

By putting the ticker to a vote, Hyperliquid is showing that it is “consciously positioning itself in opposition to the centralized control characteristic of many exchanges,” Jaehyun Ha, research analyst at quantitative trading firm Presto, told Decrypt. Such a move elevates “community oversight and transparency as central pillars of its strategy,” he added.

The governance model also “reinforces Hyperliquid’s narrative that it is building a “Hyperliquid-aligned, compliant USD stablecoin” supporting its ecosystem, instead of “relying on external issuers,” Ha said.

The economic design of USDH is also central to its intended role within the Hyperliquid ecosystem.

Hyperliquid’s planned stablecoin aims to cut reliance on USDC and recycle reserve income, with estimates suggesting a 15% liquidity share could divert $5.5 billion and yield $220 million annually for HYPE holders, Ha said.

At this scale of capture, USDH could transform from a stablecoin to become a “powerful economic lever” within Hyperliquid’s ecosystem, Ha added.

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Mega Matrix seeks $2b war chest to amass stablecoin governance tokens

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Mega Matrix is mobilizing a potential $2 billion in capital through a new shelf registration, aiming to execute a corporate-scale accumulation of key stablecoin governance tokens and corner nascent markets for protocol influence.

Summary

  • Mega Matrix filed $2 billion universal shelf registration with the SEC.
  • The capital will fund systematic acquisition of stablecoin governance tokens.
  • Shares fell 3.83% to $1.75 following the announcement, per Yahoo Finance.

According to a press release dated September 4, the Singapore-based holding company, which trades on the NYSE exchange under the ticker MPU, filed a universal shelf registration statement on Form F-3 with the SEC.

The filing seeks to provide Mega Matrix with the flexibility to issue up to $2 billion in various securities, including shares, debt, or warrants, over a three-year period. The company said the capital is earmarked for its “DeFi Asset Treasury,” DAT, strategy, with Ethena’s ENA token named as a primary target for systematic accumulation.

“The $2 billion universal shelf registration, once effective, provides MPU with the flexibility to support our DAT strategy in this new era. Governance tokens are the equity of stablecoin ecosystems, such as ENA. By building strategic positions, MPU gains both financial upside and a seat at the table where the future of money is being coded,” Mega Matrix management said.

Mega Matrix pivots to stablecoin governance

Mega Matrix, which operates the short-drama streaming platform FlexTV through its subsidiary Yuder Pte. Ltd., is now channeling its ambitions toward the core infrastructure of decentralized finance and aims to build “the largest” stablecoin governance token DAT company.

The company’s thesis, as stated in the release, is that governance tokens like ENA represent the equity of stablecoin ecosystems. Besides accruing potential financial returns, Mega Matrix is betting that its crypto treasury can accumulate significant voting power and give it a “seat at the table where the future of money is being coded.”

Per the statement, the company will offer securities “from time to time,” in response to specific capital needs and favorable market conditions. It clarified that the exact terms, including what type of security is sold and at what price, will be determined at the time of each individual offering and detailed in a subsequent prospectus filed with the SEC.

Initial market reaction was cautiously skeptical. Following the announcement, the company’s shares dropped 3.83% to $1.75, according to Yahoo Finance data.



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WLFI Token Falls on Debut as Governance Weighs Liquidity Fee Buyback Plan

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In brief

  • The buyback plan would redirect 100% of fees from protocol-owned liquidity pools across Ethereum, BSC, and Solana.
  • Proponents claim that linking fees to token burns enhances scarcity and boosts long-term value for holders.
  • Analysts caution the effect may be limited by upcoming unlocks and WLFI’s high valuation.

Less than a day through its Labor Day debut, World Liberty Financial’s WLFI token fell sharply as trading volume swelled nearly tenfold.

The governance token dropped from a high of $0.33 to near $0.21 in late Monday trading before settling at around $0.245, with trading volume increasing from approximately $259 million at launch to $2.5 billion, according to data from CoinGecko.

WLFI is down approximately 14% from its debut price of $0.28, but remains significantly higher for early whitelisted buyers who acquired tokens at around $0.015 each.

In light of recent developments, a governance proposal has appeared, calling for all liquidity fees from the project’s pools to be directed toward buybacks and permanent burns.



Posted on the project’s governance forum, the proposal aims to redirect all fees from protocol-owned liquidity on Ethereum, BSC, and Solana into open-market WLFI purchases, which are then sent to a burn address, thereby permanently reducing the supply.

If approved, WLFI would collect fees from its own liquidity positions on Ethereum, BSC, and Solana, use them to buy tokens back on the market, and send the purchased tokens to a burn address.

The proposal describes this as a measure for “direct supply reduction” that would effectively increase “relative weight for committed long-term holders.” It also links the mechanism to network activity, stating that “more usage = more fees = more WLFI burned.”

However, analysts say the effect may be less decisive when weighed against WLFI’s broader token economics.

“While the buyback-and-burn model can provide structural support for the token price, its overall impact may be limited given WLFI’s large implied valuation and relatively low circulating supply,” Min Jung, senior analyst at quantitative trading firm Presto, told Decrypt.

Jung notes that supply pressures may also outweigh the proposal’s impact.

“The scale of upcoming unlocks is likely to exceed the buyback amount, and with few live products currently driving organic demand, the long-term effect on price stability remains uncertain,” Jung explained.

WLFI’s approach mirrors shareholder-return tactics more common in mature firms than in growth-stage ventures, Jung said.

“In traditional markets, companies with high growth typically reinvest profits rather than prioritizing buybacks or dividends,” he explained. “Allocating all liquidity fees exclusively to burns could limit WLFI’s flexibility to fund product development, ecosystem incentives, or strategic investments.”

But given the scale of WLFI’s fundraising, the treasury may still be “sufficient to support future growth,” he added.

Echoing that sentiment, Ryan Yoon, senior analyst at Tiger Research, told Decrypt the buyback-and-burn mechanism “should theoretically support token value through supply reduction.”

WLFI currently lacks “operational services beyond basic liquidity provision,” which could result in minimal fee generation, Yoon said.

Positioned as a decentralized finance project, World Liberty Financial was designed as a lending and borrowing service, although its core platform has yet to be launched. 

The Trump-backed venture has already rolled out a dollar-pegged stablecoin, USD1, which currently ranks as the sixth-largest by market capitalization, according to CoinGecko data.

The project was co-founded by nine individuals, including U.S. President Donald Trump, his three sons, and U.S. special envoy to the Middle East Steven Witkoff, according to its website.

In July, Trump disclosed he had earned a windfall of $57.3 million from the venture. Along with his meme coin deals and an exclusive dinner in April, the president’s links to crypto have stirred controversy in Washington, with some lawmakers claiming possible conflicts of interest.

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