Hyperliquid adds HIP 1 scaleWei distribution function

Hyperliquid is preparing to add a native balance-management function that would let token deployers distribute assets proportionally to holders or carry out stock-split-style redenominations directly on HyperCore, according to an Aug. 12 post by founder Jeff Yan.

The proposed HIP-1 function, called scaleWei, would operate at the HyperCore balance layer rather than through a series of user-initiated transfers. It takes four inputs: the token being distributed or adjusted, the total amount involved, a reference token whose holders determine the allocation, and a system address supplying the assets.

That design could give projects listed on Hyperliquid’s spot infrastructure a standardized way to handle events resembling dividends, airdrops, rebases, stock splits, and reverse splits. Users would receive their allocation automatically according to their balance of the chosen reference token, rather than needing to submit a claim transaction.

Proportional payouts would use holder balances

Yan said scaleWei { token, totalWei, referenceToken, systemAddress } distributes a specified amount of one token from a designated system address among holders of another token. The allocation is proportional to each user’s reference-token balance.

The calculation rounds balances down, and the system address itself is excluded from the recipient pool. That prevents a treasury or system account from receiving a portion of the assets it is distributing.

Yan illustrated the mechanism with three accounts holding 100, 50, and 10 units of token A. If 1,600 units of token B were distributed according to token A balances, the three accounts would receive 1,000 B, 500 B, and 100 B, respectively. Their shares of the reference-token supply — roughly 62.5%, 31.25%, and 6.25% — determine the payout.

The same framework could support an airdrop in which holders of one asset receive another asset. A project could, for example, use a treasury address to distribute a new token to holders of an existing token without requiring every recipient to interact with a separate distribution contract.

For tokenized financial products, the design could also offer a direct route for payout-style events tied to on-chain ownership records. A token representing an equity-like instrument could distribute another asset according to the holder ledger maintained in HyperCore, subject to the token’s own structure and the applicable legal framework.

Redenomination would rebuild the order book

The more consequential operational feature appears when the distributed token and reference token are the same asset. In that case, Yan said scaleWei can perform a redenomination, changing the number of units held while keeping each account’s relative ownership unchanged.

A 1:10 split, for example, would turn balances of 100, 50, and 10 units into 1,000, 500, and 100 units. Each holder retains the same percentage of the total token supply, but the unit denomination changes.

Hyperliquid would cancel all open orders before a redenomination and recreate them using the split ratio, Yan said. Recreated order sizes would be rounded down to comply with the token’s szDecimals setting, the precision rule that determines the smallest tradable order size.

That process places particular emphasis on open orders, rather than simply wallet balances. A trader using resting spot orders would need to review the recreated orders after a split or reverse split, especially where rounding affects the final order size. The proposal describes changes to order quantities, but it does not suggest that a redenomination alters each holder’s proportional economic interest solely through the unit conversion.

Yan also said totalWei can be negative, allowing the operation to run in reverse. That would enable reverse splits, in which the number of units declines and each remaining unit represents a larger fraction of the pre-adjustment supply.

Core and EVM balances may need separate handling

The source of assets for the distribution can come from two types of addresses, Yan said. One is a Core-to-EVM system address. The other is a deployer-selected treasury address capable of providing signatures.

The distinction matters for assets that exist in both HyperCore and the Hyperliquid EVM environment. Yan said the EVM does not offer an equivalent atomic operation, meaning a matching EVM token may need custom smart-contract logic to reproduce the balance adjustments applied in HyperCore.

Atomic execution means the full distribution or redenomination is handled as one coordinated operation, rather than requiring a sequence of transactions that can be delayed, partially completed, or separately executed. On HyperCore, that approach would allow the protocol’s balance ledger and order-book rules to process the event together.

On the EVM side, token developers may face a more complex implementation task. They would need to ensure that any mirrored token supply, user balances, and related applications remain consistent with the HyperCore event. The result could depend on how a project structures its token across the two environments.

A tool for issuer-controlled token operations

The proposal gives HIP-1 deployers a protocol-level mechanism for corporate-action-like operations that are often difficult to coordinate across decentralized markets. Conventional smart-contract distributions can require recipients to claim funds, while supply adjustments can create complications for trading interfaces and outstanding orders.

Hyperliquid’s approach would move the calculation and balance updates closer to the exchange’s core ledger. That could reduce the number of steps required for distributions conducted entirely within HyperCore, while making the deployer’s treasury and reference-token choice central to how an event is executed.

The feature also creates a clear operational dependency for token holders: eligibility would be determined by the reference-token balances used at the time the distribution is processed. Projects using the function would therefore need to communicate the relevant asset, timing, and treatment of balances held across HyperCore and the EVM.

Yan’s outline establishes the intended mechanics for the function, including proportional rounding, treasury-funded distribution, and order cancellation during redenominations. Its practical use will depend on which HIP-1 token deployers adopt it and how they design the surrounding token, treasury, and EVM components.