Hyperliquid has announced an upcoming network upgrade, HIP-4, that will allow permissionless deployment of prediction markets, expanding market creation beyond validators. The upgrade introduces validator-approved templates and a staking system to ensure markets are clearly defined and properly settled. Despite the news, Hyperliquid’s native HYPE token remained in the red, trading near $60, down about 1% in 24 hours.
Hyperliquid announced on July 20 that its upcoming HIP-4 network upgrade will enable permissionless deployment of prediction markets. The feature will launch on testnet before hitting the mainnet, expanding who can create outcome markets.
Validators will vote on standardized outcome templates that anyone meeting the HIP-4 requirements can use to launch markets. These templates will be stored and enforced on-chain, designed to cover events with sufficient liquidity and user interest.
The responsibility for defining and settling individual markets will lie with deployers according to the chosen template. Canonical markets created by validators will still exist but are expected to decline, with Hyperliquid suggesting they should account for less than 10 outcome markets annually.
The proposal introduces financial incentives and penalties, including a 500,000 HYPE stake for anyone seeking to become a HIP-4 deployer. That stake will be locked for six months, and validators can slash it if markets are poorly defined or settled incorrectly.
Leaving a market unsettled for more than one week will also result in a deployer’s stake being slashed. Initially, each deployer will receive capacity for 100 outcomes, or 200 outcome tokens, with more allocation planned through a future auction mechanism.
Deployers will eventually be able to set fee sharing of up to 50% on their markets. The team clarified that “all specifications described above are preliminary and subject to change based on feedback.”
At the time of writing, HYPE was trading near $60, down about 1% in 24 hours and nearly 10% in the last seven days. The asset has fallen nearly 16% across two weeks and almost 13% in the past 30 days, though it remains close to 34% higher year-on-year.
