TLDR
- Hyperliquid has been under the spotlight due to concerns about its network being too centralized and the processes it uses to select validators.
- Currently, the platform is running with 16 validators at its helm
- There have been voices pointing out issues with the proprietary nature of their code and the restricted access to their API.
- The company has rejected any suggestions that it is offering validator roles for sale.
- Hyperliquid plans to make its code open-source once it achieves stability, dismissing any current accusations.
As a platform focused on decentralized finance through its perpetual contracts and foundational Layer 1 blockchain, Hyperliquid addresses rising concerns related to both its network structure and how validators are chosen.
Operating through a team of 16 validators, the platform has faced public critique as community members have questioned its transparency and level of decentralization.
In response to critical discussions on the social media platform X, the Hyper Foundation refuted claims that validator roles were available for purchase, clarifying that selection is strictly based on performance in the testnet environment.
Committed to revolutionizing finance by shifting it onchain, Hyperliquid is continually evolving, valuing feedback from its community which has greatly contributed to its ecosystem's expansion.
Recently, there has been some misunderstanding surfacing around the topic of validators...
— Hyperliquid (@HyperliquidX) January 8, 2025
The issue gained momentum following a widely circulated letter from Kam Benbrik, which delved into perceived flaws within the platform's underlying infrastructure. Key issues include the closed nature of the platform's code, reliance on a singular API, and what critics see as lacking incentives for validators.
Taylor Monahan, a security researcher affiliated with MetaMask and known as Tayvano on X, added depth to the discussion by considering the larger impact of these issues on network security and decentralization.
That's alarmingly many Single Points of Failure. 😳 https://t.co/RzpyhmTNIt
— Tay 💖 (@tayvano_) January 8, 2025
According to the Hyper Foundation, the choice to work with 16 validators is a foundational step, with plans for this number to grow as the network develops further.
Responding to the critique around proprietary code, Hyperliquid defends its initial decision as vital for achieving high performance, yet committed to transitioning the code to open-source when stable.
The issue with the platform's single-binary system was addressed by the foundation as a necessary component for delivering the performance levels required for high-stakes financial work.
There have been calls for Hyperliquid to enhance transparency in their validator appointment process to remain competitive among prominent Layer 1 blockchains.
Details from the foundation regarding future approaches to decentralization include a delegation initiative expected to broaden network involvement.
Feedback from the community has largely focused on three areas: open access to the code, the approach to selecting validators, and how the network is decentralized. Each of these has been addressed concretely by the foundation.
The developers behind the platform have reiterated their goal of operating with steadfast stability while moving towards deeper decentralization, positioning it as a slow evolution rather than an abrupt shift.
Technical criteria for validator engagement continue to rely on testnet performance metrics, with the foundation maintaining this ensures dependable network strength and reliability.
Once active, the delegation initiative will offer more pathways for community members to engage in network tasks, ensuring set operational benchmarks.
Recent releases from the foundation highlight its ongoing dedication to meeting these requirements without sacrificing the core financial trading and blockchain functionalities.
