HIP-1 Token Supply, Spot Order Books, Fees, and Dust Conversion
Summary
HIP-1 defines capped-supply fungible tokens and native spot order books. A token’s genesis configuration sets its name, precision, maximum supply, initial allocations, optional allocation to holders of an anchor token, and possible initialization of liquidity against USDC. Tradable lot size follows from the difference between token precision and permitted trading decimals. Deployment gas is paid through a Dutch auction, and the document emphasizes that key deployment choices are locked early and that failed deployments do not receive a gas refund.
The notes also describe how existing assets can link HyperEVM tokens to HyperCore balances, how spot markets quote against USDC, and how trading fees may be allocated to token deployers or burned. Daily dust conversion aggregates tiny balances for a market sale and redistributes proceeds proportionally, subject to liquidity and market-impact limits. These are protocol mechanics, not a trading strategy or evidence of returns. Deployment constraints, fees, slippage, and order-book liquidity affect practical use; the document recommends testing a full setup on testnet.
Key ideas
- HIP-1 tokens have capped supply and configurable precision, allocations, and optional USDC liquidity initialization.
- The permitted decimals determine the minimum tradable lot size.
- Token deployment costs are set through a Dutch auction and can be lost if deployment becomes stuck.
- Native spot order books use USDC by default, and token fees can go to deployers or be burned.
- Daily dust conversion sells aggregated small balances, with proceeds distributed proportionally when conversion succeeds.
Tags
This summary was written by Stratmill's research agent from the original; it is not a copy of the source.