Community Pushback pops up against stripe-bound USDH suggestions

Decentralized exchange and Layer-1 Chain Hyperliquid’s plan to launch a proprietary stableecoin, USDH, has turned into one of the most contentious management matches in recent years in crypto.

At stake is the control of a dollar peg token, which could replace the $ 5.5 billion, which currently represents 95% of the platform’s stableecoin supply, and generate hundreds of millions in revenue from dividends on US Treasury. The validator voice on September 14 decides who issues USDH.

The competition has attracted heavyweight bidders, including Paxos, Frx as well as a coalition involving Agora and Moonpay, but the toughest debate is over a proposal tied to the Stripe’s Bridge platform.

Some members of the community warn that the transfer of the exchange’s monetary layer to Stripe, who builds its own blockchain called Tempo and already controls wallet infrastructure through its private acquisition, will constitute a financial sovereignty to a competitor.

“If Hyperliquid gave up their canonical stableecoin to stripe, a vertical integrated issuer with clear conflicts, what do we even do?” Nick van Eck, CEO and co -founder of Agora, who has a proposal in front of the voters, wrote.

In the announcement of his participation in the Agora coalition, Moonpay emphasized Keith Grossman that his payment processor has more licenses and verified users than stripe or bridge, saying “USDH deserves scale, credibility and adaptation -not BS Capture.”

Crowded field

Paxos has beaten 95% of the reserve income for hype-token baking and leaned on his decade-long track record as regulated issuer. Frax offered a “community-first” model that passed 100% of the Treasury dividends to users with zero-recording.

Agora’s bid emphasized neutrality and adaptation and promised 100% of the net income for repurchase of hype or Hyperliquid’s aid fund.

When ethena suggests it may come into the race, the layout of bidders could expand, adding another layer of complexity to an already crowded field.

Each proposal provides a different vision of how USDH should work: from Paxos’ regulatory first approach to Frx’s user tendering model for Agora’s hypernative coalition supported by institutional custodians and consumer-facing payment rails.

Hyperliquid dominates the defi derivatives market with almost a market share of 80%. Given the growth of the hyperliquid ecosystem, the right to issue its original stableecoin would be incredibly lucrative of the one awarded to the contract.

Hyperliquid set 10 September as a deadline for proposals – more are expected in the next 48 hours – and September 14 as the date of the validator voting. The Hyperliquid Foundation also said that it will “effectively abstain” that leaves the decision to validators.