Hyperliquid, a decentralized finance (DeFi) protocol, has introduced native staking on its mainnet, enabling HYPE token holders to earn rewards by securing the network. As of December 30, users have staked $344 million in HYPE tokens, valued at over $9 billion. The staking feature allows users to choose validators based on their uptime, commission rates, reputation, and community contributions, launching with 16 validators. Hyperliquid's protocol has facilitated over $12 billion in trading volume in December alone. Staking involves locking tokens to validate transactions and secure the network, with participants earning rewards in additional tokens. Following a major airdrop of 310 million HYPE tokens, the price of HYPE soared from $3.90 in late November to approximately $26.80. Despite the potential for a favorable regulatory landscape in the U.S. in 2025, challenges remain, including IRS guidelines taxing staking rewards as income upon receipt, complicating compliance for decentralized protocols.

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