Hyperliquid has initiated its first formal on-chain governance test by putting the USDH stablecoin ticker up to a validator vote. This decision, announced via its official channels, marks a pivotal moment as the protocol seeks to deepen decentralization and transparency in shaping its stablecoin strategy.
The vote is scheduled to take place on-chain using Hyperliquid’s own Layer-1 infrastructure. Validators must cast their votes between 10:00 and 11:00 UTC on September 14, 2025, following a proposal deadline on September 10 and a declaration deadline on September 11. All validators on the network can participate.
However, the Hyper Foundation’s validator nodes have pledged to abstain or align with majority support among non-foundation validators. This is an effort meant to reduce centralization and ensure broader stakeholder influence.
Test for on-chain governance
The aim is to select the team authorized to register the USDH ticker, a key branding move for a fresh, compliant, Hyperliquid-native stablecoin, distinct from bridged assets like USDC. The vote plays an important role in making the protocol’s governance decisions more transparent and stakeholder-driven. It’s a symbolic yet meaningful trial of on-chain governance, testing whether validator-held decision-making can genuinely shape protocol evolution.
Shift toward native stablecoins
The passage of this vote is very crucial as several existing stablecoin teams on Hyperliquid have raised concerns. Some have argued that the reintroduction of the USDH ticker may prove to be a disadvantage to projects that previously had to adopt alternate names due to its unavailability. One developer even urged keeping USDH blacklisted or having Hyperliquid internally issue a stablecoin to maintain neutrality.
Meanwhile, major contenders, including Paxos, Frax, and an Agora–MoonPay coalition, are vying for issuance rights, each offering different revenue-sharing and alignment models. So, come 14th September, we will know in which direction the vote goes. But this outcome could shape not just stablecoin deployment, but the protocol’s trust and legitimacy in decentralized decision-making.