The post Hyperliquid Under Fire as Validators Expose Key Decentralization Flaws appeared on BitcoinEthereumNews.com.

Hyperliquid (HYPE) token is once again in the spotlight as validators have raised concerns about its centralization and lack of transparency. The topics of major challenges including closed source code, centralized API dependence, and closed decentralization have generated discussions across crypto. As a result, HYPE token price suffered a sharp drop of 15% in the last 24 hours amid the broader market volatility. With increasing demands for transparency, the project’s future remains under a critical challenge. Hyperliquid Responds to Validator Decentralization Concerns Hyperliquid has come under fire following claims about decentralization flaws raised by Kam, a well-known figure in the crypto community. Kam, in a detailed post on X, highlighted concerns about the platform’s validator structure, accusing it of being overly centralized and closed to wider participation. He also alleged that the current system restricts competition and creates barriers for validators outside the initial testnet participants. In so doing, Hyperliquid released a press statement in response to the accusations. The platform emphasized that all validators earned their positions based solely on testnet performance, rejecting accusations that seats could be purchased. Hyperliquid noted that such allegations trivialize the effort taken, by validators who dedicated a lot of time to learning and aiding to evolve the system. In an effort to further decentralize the network, the exchange has announced plans to develop the validator set as the blockchain ages. The Foundation Delegation Program is introduced to back the high-level validator and build up a more decentralized ecosystem. The group also dispelled the misconception about API server availability, that it is possible to run any server pointing to any node. Hyperliquid addressed concerns about the closed-code status of its existing node. The platform assured users that open sourcing will happen once development stabilizes and becomes secure. Hyperliquid’s Stance on Testnet Tokens and Market…

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Filed under: News - @ January 8, 2025 8:19 am