Hyperliquid proposes HIP-1 scaleWei function to enable stock splits and dividends for tokenized equities.
Tech & Launches ·
Hyperliquid is advancing a proposal called HIP-1 that would introduce a scaleWei function to its protocol, designed to handle corporate actions for tokenized equities listed on the platform. The scaleWei mechanism would enable stock splits and dividend distributions—operations that require adjusting token balances across holders without individual transactions. This development extends Hyperliquid's existing infrastructure for pre-IPO equity markets, which operate as perpetual derivatives on the exchange's custom Layer-1 blockchain.
The proposal addresses a technical gap in how blockchain-native securities can replicate traditional equity mechanics. Currently, many tokenized stock platforms lack standardized methods for executing coordinated balance adjustments that affect all holders simultaneously. HIP-1 would codify such functionality, allowing Hyperliquid to offer a more complete trading environment for corporate actions that occur regularly in traditional markets. The mechanism sits alongside HIP-3, the platform's permissionless listing standard that enables any asset to be listed as a perpetual contract.
The timeline and governance process for HIP-1 adoption remain unclear. It is also unknown whether the scaleWei function would apply only to equity derivatives or to other asset classes on the platform, and no details have been disclosed regarding how dividend payments would be denominated or settled on-chain.