Model HYPE’s fee-funded buyback under different volume, fee, price, and allocation assumptions. The volume-shock slider stress-tests the program: it proportionally reduces daily volume while float stays constant, which is the core sustainability question for any fee-funded buyback design.
For the full mechanism breakdown — Assistance Fund mechanics, allocation context, HYPE-specific risks — see the HYPE tokenomics article.
How to use
- Daily volume ($) — average daily notional volume on the fee-generating product. HYPE reference range: $1–3B.
- Effective fee (bps) — blended taker/maker fee. HYPE reference: ~2.5 bps.
- Fund allocation (%) — fraction of fees routed into the Assistance Fund. HYPE reference: ~95%.
- HYPE price ($) — current token price; determines how many tokens are bought per dollar of fee flow.
- Circulating supply — tokens currently on the market.
- Volume shock (%) — proportional reduction in daily volume for stress testing. Try −30% and −50%.
Calculator
HYPE Buyback Sustainability
Annual buyback ($)
$173M
% of supply / year
2.62%
Buyback / market cap
2.62%
Sustainability curve
% of supply bought per year as a function of daily volume (log scale). Bands show sustainability regimes. The dot is your current input.
How to read this. The "% of supply / year" row is the headline sustainability number. Below 1% is cosmetic; 2–5% is the healthy working range; above 5% is aggressive and usually indicates either small float or large fee base. Move the volume-shock slider to −30% or −50% to see how the program behaves under a trading-volume downturn — the dot on the chart tracks the shocked volume.
Formulas
Annual_buyback_$ = Daily_volume · Fee_% · Allocation_to_buyback_%
- Annual_buyback_$ — dollars routed to buyback per year (computed)
- Daily_volume — average daily notional volume on the fee-generating product ($)
- Fee_% — effective fee rate (fraction, e.g. 0.00025 for 2.5 bps)
- Allocation_to_buyback_% — fraction of fees routed to buyback (fraction, 0 to 1)
Tokens_bought_per_year = Annual_buyback_$ / Avg_token_price
- Tokens_bought_per_year — annualized token purchase flow (computed)
- Avg_token_price — volume-weighted average token price over the year ($)
- Self-adjusting: higher price buys fewer tokens per dollar
Annual_supply_removal_% = Tokens_bought_per_year / Circulating_supply · 100
- Annual_supply_removal_% — headline sustainability number (computed)
- Circulating_supply — current circulating tokens
- Rule-of-thumb bands: under 1% cosmetic, 2–5% meaningful, over 5% aggressive
Buyback_to_MC_ratio = Annual_buyback_$ / Market_cap
- Buyback_to_MC_ratio — annual buyback flow as fraction of market cap (computed)
- Market_cap — circulating supply × current token price ($)
- Most comparable metric across projects — independent of absolute price level
Reference scenarios for HYPE
| Scenario | Daily volume | Fee | Annual buyback | % supply / year |
|---|---|---|---|---|
| Low | $1.0B | 2.0 bps | ~$69M | ~1.1% |
| Mid | $2.0B | 2.5 bps | ~$173M | ~2.6% |
| High | $3.0B | 3.0 bps | ~$312M | ~4.7% |
All scenarios assume ~95% fund allocation, ~$20 HYPE price, ~330M circulating supply. Cross-check against live dashboards (DefiLlama, Dune) before using in any decision.