Hyperliquid Unveils AQAv2 Framework for Enhanced Token Buybacks

The Hyperliquid protocol is introducing a new framework called AQAv2 to manage its Assistance Fund, which will use Circle USDC reserve yield to buy back HYPE tokens from the market. This development follows a validator vote on June 12, where 19 out of 26 validators approved the change at a 69.08% threshold.

The new framework is expected to add $135 million to $160 million in annual buyback capital, on top of the existing fee-based buybacks that generate an estimated $771 million per year. This means the total annual buyback spending could exceed $900 million, a scale analysts say is unusually large relative to HYPE's market capitalization.

The Assistance Fund will receive a portion of the USDC reserve yield, with roughly 90% of the cost-adjusted yield being shared with the protocol. The first transfer to the fund is scheduled for October 3, 2026, when Circle will handle the technical side of the Coinbase Circle Hyperliquid deal.