HyperLiquid, a layer-1 blockchain with a derivatives exchange, has faced criticism over its lack of decentralization and control over validators. The concerns were raised by Kam Benbrik of ChorusOne, who highlighted the use of closed-source code and HyperLiquid's control of 81% of staked HYPE tokens. Benbrik warned that this control could potentially lead to negative outcomes if a single entity holds a significant stake. In response, HyperLiquid announced a Foundation Delegation Program to enhance decentralization and stated that the node code will be open source once it is secure. This criticism has resulted in a decline in sentiment surrounding HyperLiquid, with its native HYPE token dropping in value.



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