Kinetiq unveils Elysium L2 with HYPE gas

Kinetiq unveiled Elysium on Aug. 24, introducing a layer-2 network designed to increase transaction capacity within the Hyperliquid ecosystem while using HYPE as its gas token. Summary Kinetiq announced Elysium, a Hyperliquid-focused layer-2 network that will use HYPE for transaction fees from launch. Fifty percent of sequencer fees will fund open-market KNTQ purchases, with acquired tokens permanently burned. Builders and Kinetiq’s treasury will each receive 25% of Elysium’s sequencer fees once operations begin. Elysium targets spot markets, PropAMMs, token launches and HIP-3 perpetual deployments across Hyperliquid’s broader ecosystem. Kinetiq has not released technical specifications, launch partners, audited code, or a mainnet date yet. The liquid-staking protocol said Elysium would focus on spot trading, proprietary automated market makers, token launches and HIP-3 perpetual markets. Kinetiq described the launch as “imminent” but did not provide a mainnet date. You might also like: Hyperliquid HIP-3 and HIP-4 Explained Elysium L2 targets HyperEVM performance limits Elysium is intended to provide an Ethereum-compatible execution environment with stronger connections to HyperCore, Hyperliquid’s native order-book and trading infrastructure. Kinetiq argued that HyperEVM’s dual-block architecture and limited capacity create problems for traders and application developers. The protocol said transaction costs for a simple swap have reached as much as $20 during periods of heavy activity. https://t.co/iqAIxGsPr5 — Kinetiq (@Kinetiq_xyz) August 24, 2026 Kinetiq claimed Elysium will deliver performance “orders of magnitude” above HyperEVM. The company has not published benchmarks or technical specifications supporting that comparison. The project also aims eventually to approach HyperCore’s block times. That remains a development target rather than demonstrated mainnet performance. Kinetiq said specifications and infrastructure partners would be disclosed later. HYPE will remain Elysium’s gas token Elysium will use HYPE for transaction fees instead of introducing another network asset. Kinetiq said this approach should reduce the need for users to acquire a separate gas token when moving between HyperCore, HyperEVM and Elysium. The decision could create another source of HYPE utility if the network attracts users. However, Kinetiq has not explained how collected gas payments will be handled beyond its planned distribution of sequencer fees. Elysium will modify Hyperliquid’s L1Read precompile to give applications access to trading information from HyperCore. The existing implementation allows HyperEVM contracts to read data such as asset prices and order-book information from HyperCore. Kinetiq said its version would expose additional information beyond the best bid and offer. It expects PropAMMs to use that data when calculating prices and hedging positions, although the available fields have not been published. Half of sequencer fees will fund KNTQ burns Kinetiq plans to allocate 50% of Elysium sequencer fees to programmatic KNTQ purchases on the open market. All acquired tokens would be sent to the Hyperliquid Assistance Fund for burning. Applications consuming Elysium blockspace would receive 25% of sequencer fees.