🎁Reward Distribution
Reward Distribution
How Rewards Are Generated
When users stake $HYPE via HypurrStake, the protocol delegates these tokens to a curated set of node operators who participate in network validation on the Hyperliquid network. These validators earn staking rewards, which are automatically distributed to $hsHype holders.
Distribution Mechanism
HypurrStake uses a rebase-free, exchange rate model for reward distribution. Here's how it works:
Rewards Accumulate in the Protocol Validator rewards (in $HYPE) are sent back to the HypurrStake staking pool.
Value of $hsHype Increases Instead of increasing the number of tokens, the exchange rate between $hsHype and $HYPE rises:
e.g. 1 $hsHype = 1.00 → 1.02 → 1.05 $HYPE over time
Passive Yield for All Holders Every $hsHype holder benefits from the growing value, without needing to claim rewards manually or take any action.
Key Characteristics
Distribution Frequency
Continuous (block-level), reflected via exchange rate
Reward Asset
$HYPE
Reward Handling
Auto-compounded into $hsHype value
User Action Required
None
Claiming Needed?
❌ No
Example
Alice stakes 100 $HYPE → receives 100 $hsHype
A week later, due to validator rewards:
1 $hsHype = 1.05 $HYPE
Alice redeems her 100 $hsHype → receives 105 $HYPE
Fair & Proportional
Reward distribution is proportional to your share of $hsHype in the system. Whether you hold 1 or 10,000 $hsHype, your yield scales fairly based on your holding.
Summary
By holding $hsHype, you earn staking rewards passively — no effort, no delay, no missed opportunity. This design ensures a smooth user experience while maintaining fairness, composability, and on-chain transparency.
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