Hyperliquid’s First Layer 2, Elysium, Targets November 9 Launch With HYPE as Gas Token
Elysium, the first dedicated Layer 2 network in the Hyperliquid ecosystem, is targeting a public mainnet launch on November 9, with HYPE serving as its native token for transaction fees. Developed by liquid-staking protocol Kinetiq, the network is designed to accelerate execution for decentralized trading applications while connecting them to Hyperliquid’s existing financial infrastructure.
The planned deployment marks a new stage in Hyperliquid’s infrastructure expansion. However, confirmation that the public mainnet has been fully activated remains pending, following several weeks of public testnet development.
According to Kinetiq’s official announcements, Elysium is built as an Arbitrum Orbit rollup that settles transactions on HyperEVM, Hyperliquid’s Ethereum-compatible smart contract environment.
Elysium Targets 100-Millisecond Block Production
Elysium is designed to produce blocks every 100 milliseconds, aiming to provide more frequent execution than the standard block intervals available through HyperEVM.
Its published technical specifications also set a target capacity of up to 300 million gas units per second. These figures represent architectural targets, however, rather than independently verified measurements of sustained transaction throughput on a live mainnet.
Hyperliquid currently operates two main infrastructure components: HyperCore, which supports spot and perpetual futures trading, and HyperEVM, which provides an Ethereum-compatible environment for smart contracts. Elysium adds another execution layer intended for applications that require more frequent transaction processing.
The expansion comes amid growing institutional interest in the Hyperliquid ecosystem, including plans to introduce regulated futures infrastructure in the United States.
HYPE Will Pay Transaction Fees on Elysium
Rather than introducing a separate gas token, Elysium will use HYPE to pay transaction fees. Users will be able to bridge HYPE from HyperEVM to Elysium at a one-to-one ratio, allowing the same cryptocurrency to support activity across both environments.
This arrangement could extend HYPE's utility beyond its existing roles in staking, governance and Hyperliquid's trading ecosystem. However, greater network usage does not necessarily mean the token's market price will increase. Any economic impact will depend on actual adoption and transaction activity.
Kinetiq has also outlined a revenue-sharing structure intended to reward developers and support network operations. Under the announced model, 25% of sequencer revenue will go to builders generating activity on the network, while another 25% will fund operations.
The remaining 50% is allocated to purchases of Kinetiq's KNTQ token. The purchased tokens will then be directed to Hyperliquid's Assistance Fund, creating a separate revenue allocation mechanism alongside the ecosystem's existing token-buyback arrangements.
HyperCore Trading Features Planned for a Later Upgrade
The initial November 9 deployment is only the first phase of Elysium's development. Kinetiq plans another upgrade approximately four weeks later to introduce direct connections between smart contracts and HyperCore.
The planned functionality would allow contracts to access HyperCore market data and submit orders directly. This could support automated market makers, algorithmic trading strategies and other applications that require access to order-book information.
Kinetiq has also announced dedicated infrastructure in Tokyo intended to improve access to HyperCore data.
The developments follow the expansion of Hyperliquid's trading activity, which has drawn attention from Intercontinental Exchange, the owner of the New York Stock Exchange. Meanwhile, applications built around staked HYPE assets continue to develop within Hyperliquid's liquid-staking ecosystem.
source: coinpaper
Writer: Ethan Collins
Crypto Journalist
Ethan Collins reports on developments across the cryptocurrency and blockchain sector. His work covers market movements, protocol updates, regulatory changes, and emerging trends in digital assets.
He focuses on presenting complex topics in a clear and accessible manner for a broad readership.
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