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Hypha Tokenomics

Blockchain technology is paving the way for Web3 economics with decentralized structures. Hypha's services are represented by the HYPHA token, using a utility function for continuous self-pricing. This White Paper presents our foundational token model for the blockchain economy.


The HYPHA utility token was designed to be used for the specific purpose of enabling access to the Hypha DAO technology tools. This is accomplished by a staking requirement in HYPHA tokens for each DAO, based on its number of members.

  • Fixed total supply of HYPHA tokens = 150,000,000
  • Initial Circulating supply (Liquid) = 15,000,000 (10% of total)
  • Remaining HYPHA tokens (Locked) = 135,000,000 (90% of total)

For each DAO to be operational, it must have a sufficient number of HYPHA tokens staked on its behalf. These can be staked by the DAO itself or by anyone else. The number of tokens required to be staked for a particular person to be in a DAO is never more than 5 tokens, and this amount goes down based on various factors:

Lower if the person is in multiple DAOs
Lower as the total number of unique people in all DAOs increases

Only Liquid tokens are eligible to be staked for a DAO. During the time tokens are staked, they are held in a Hypha Network system staking contract on behalf of the DAO, and the person who staked them can request them to be returned at any time. Thus the ownership of these HYPHA tokens does not change by staking them for a DAO. When a person provides tokens to meet the staking requirement for a DAO, they receive a reward of additional Liquid tokens deposited into their account on a regular schedule. Posting the staking requirement on behalf of a DAO provides lifetime access for the DAO to operate, as long as the tokens remain staked. There are no monthly fees required per member.

This overall design aligns the interests of all HYPHA token holders with the goal of increasing the total number of people in DAOs using the Hypha DAO technology tools. The Tokenomics White Paper describes precisely the two key mathematical formulas: (1) the amount of rewards issued for staking, and (2) the number of tokens required to be staked for each DAO.

As the total number of people increases across all DAOs, the average number of tokens per member that a DAOs needs to have staked goes down. This allows DAOs to have an increasing number of members for the same number of staked tokens. Fundamentally, this means that each staked HYPHA token is able to provide more value to the DAO.

This beautiful design of the tokenomics is calibrated to release additional HYPHA tokens into circulation (Liquid) in a pace that is aligned with the growth of the number of people in the Hypha Network who are members of DAOs. As the overall growth of the Hypha Network increases, the relationships and services provided by DAOs will also increase the benefits of joining and participating in DAOs. Thus, the careful mathematical design of the tokenomics genuinely aligns all interests in growing not only the number of members, but also the collaborative activities between the networks of DAOs.

The fixed total supply of HYPHA tokens have been created in four categories:

  • Early Stakeholders = 46,000,000 (30.7% of total)
  • Hypha DAO Treasury = 19,000,000 (12.7% of total)
  • Launch Stakeholders = 10,000,000 (6.7% of total)
  • Incentive Rewards = 75,000,000 (50% of total)

The Tokenomics White Paper describes in detail how these tokens are released into Circulation based on the growth of the number of people in DAOs using the Hypha tools. The Hypha DAO will be selling the Liquid tokens from its Treasury and the Locked tokens from the Launch Stakeholders category to fund ongoing development of the technology tools.