On October 20th, the emerging decentralized exchange protocol HyperSwap announced the economic model details of its SWAP token. The protocol is built on the Hyperliquid network and plans to issue a total of 100 million SWAP tokens.

The allocation plan for the SWAP Token demonstrates the project team's long-term development strategy. One quarter of the tokens will be directly distributed to community members, and another quarter will be allocated to early investors; these two parts will be fully unlocked at the beginning of the issuance. To encourage user participation in platform activities, 25% of the tokens are reserved for future liquidity mining, of which 15 million will be gradually released over 3 years, while the remaining 10 million will be unlocked linearly over 1 year.

HyperSwap has also set up an 8% Token pool for core contributors, adopting a model of a 1-year lock-up period followed by a 1-year linear release, in order to attract and retain talent. 10% of the Tokens are planned for future trading activity airdrops, which will be unlocked in six months, potentially stimulating trading activities on the platform. Additionally, 3% of the Tokens are allocated to the advisory team, 2.5% for HyperSwap's own liquidity pool, and 1.5% is allocated to the HIP-2 project.

It is worth noting that HyperSwap has introduced the concept of xSWAP, which is a restricted version of SWAP, accounting for 25% of the total supply. xSWAP holders need to undergo a lock-up period of up to 6 months in order to exchange it for SWAP at a 1:1 ratio. This design aims to stabilize the token price and encourage long-term holding.

The token allocation plan of HyperSwap reflects the project team's considerations of various aspects of the ecosystem, including community participation, investor returns, long-term development incentives, and market liquidity. As decentralized finance continues to evolve, how HyperSwap's economic model will function in practice is worth the ongoing attention of market participants.