Kinetiq (KNTQ): Everything to Know About Hyperliquid’s New Token Launch

Kinetiq has quickly become one of the most active liquid staking protocols within the Hyperliquid ecosystem, and the launch of its official governance token, KNTQ, marks a major step in its development. 

Designed to give its community a direct voice in how the protocol evolves, KNTQ arrives at a time when liquid staking continues to gain momentum across new Proof-of-Stake networks. This guide explores the token’s purpose, distribution structure, and the rapid rise of Kinetiq within decentralised finance.

What the KNTQ Token Represents in the Kinetiq Ecosystem

KNTQ was introduced by the Kinetiq Foundation as the official governance token for the protocol. Governance tokens occupy an increasingly important role in decentralised finance, as they give users the ability to influence updates, proposals, and other decisions that guide the direction of a platform. In Kinetiq’s case, the token reflects both ownership and responsibility, encouraging a more participatory model for shaping how its liquid staking products evolve over time.

With a maximum supply set at one billion tokens, KNTQ also becomes a fundamental component of how Kinetiq’s economy will function in the long term. Eligible users are required to acknowledge the official Terms of Use before receiving an airdrop, which demonstrates the project’s intention to maintain a structured and transparent governance process as participation expands. 

By allowing token holders to take part in decisions, the protocol aims to reinforce accountability and ensure that upgrades consider the interests of its wider community.

Kinetiq itself operates on Hyperliquid’s Layer 1 environment known as HyperEVM. This platform supports a range of fully onchain applications that benefit from fast execution and composability. As the largest liquid staking protocol on HyperEVM, with over 1.6 billion dollars in total value locked, Kinetiq represents a major share of the chain’s activity. 

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The introduction of KNTQ therefore aligns with broader growth patterns seen across the liquid staking sector, where user participation plays a central role in maintaining decentralised control.

Liquid staking continues to expand rapidly, reaching nearly 88 billion dollars in total value at its peak and remaining one of the most significant categories within decentralised finance. As demand grows, governance tokens such as KNTQ ensure that the infrastructure behind these protocols keeps evolving through community engagement.

Understanding KNTQ Token Distribution and Its Purpose 

To create a balanced ecosystem and distribute influence responsibly, the Kinetiq Foundation has detailed a clear allocation structure for KNTQ. The distribution covers several groups that contribute to the protocol’s development and long-term stability. 

According to the official breakdown, 30 percent of the supply is reserved for protocol growth and rewards. This allocation supports ongoing development, community incentives, and future improvements that strengthen Kinetiq’s position in the liquid staking market.

Another 25 percent is allocated to the initial airdrop, which includes both Hypurr holders and kPoints holders. Hypurr holders will receive one percent of the total supply, while kPoints holders will receive twenty-four percent. 

This arrangement acknowledges early participation and gives long-standing supporters a meaningful share of the governance process. It also reflects the protocol’s intention to recognise those who contributed to its early liquidity and adoption.

Core contributors are allocated 23.5 percent of the supply. This includes the developers and builders who have been involved in shaping Kinetiq since its early stages. Providing contributors with governance tokens encourages ongoing involvement and aligns the long-term interests of all parties engaged in maintaining the protocol. The Kinetiq Foundation itself receives ten percent, ensuring that the organisation can continue to coordinate development and oversee the protocol’s roadmap.

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Investors receive 7.5 percent, which reflects the funding raised from participants within the Hyperliquid ecosystem. These investors helped establish Kinetiq in its early stages, with the project raising around 1.75 million dollars in late 2024. 

Finally, four percent is allocated to liquidity, ensuring that the token becomes easily accessible and tradable across relevant markets. Together, these allocations create a balanced governance structure that represents builders, early supporters, investors, and the broader community.

The Growth of Kinetiq and Its Role in Hyperliquid’s Ecosystem

Kinetiq has grown at an exceptional pace since launching in July, quickly becoming the fastest-growing liquid staking protocol on Hyperliquid. Within the first twenty-four hours of operation, the platform attracted over 460 million dollars in deposits, distributed across roughly 2,800 wallets. This extraordinary early activity reflected both interest in Hyperliquid’s infrastructure and the emerging role of liquid staking within newer Layer 1 environments.

The protocol’s main product, kHYPE, has climbed into the top ranks of liquid staking assets, amassing more than 1.3 billion dollars in total value. This positions Kinetiq alongside some of the major liquid staking protocols across the broader DeFi landscape. 

Its success is further supported by HyperEVM’s design, which operates as a fully unified execution layer connected directly to the onchain Hyperliquid exchange. This connection makes it easier for applications to build on top of one another, creating a composable environment where liquid staking products can integrate seamlessly with trading, yield, and other decentralised tools.

As liquid staking continues to expand across different chains, platforms such as Kinetiq serve as essential infrastructure for users seeking to retain liquidity while participating in network security. More than 53 billion dollars in liquid staking value remains concentrated on Ethereum, but demand for alternatives has grown steadily as ecosystems like Hyperliquid develop more mature applications.

Kinetiq’s rapid rise demonstrates how new DeFi protocols can attract large amounts of capital when they offer intuitive staking mechanisms, strong integration options, and a community-led roadmap. 

With the introduction of KNTQ, user participation becomes more structured, enabling the protocol to evolve in ways that reflect the needs of its broader ecosystem. This transition marks an important step as Kinetiq continues to expand its products beyond liquid staking and into additional areas of onchain finance.

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Conclusion

The launch of KNTQ marks an important milestone for Kinetiq as it strengthens its governance model and solidifies its role within Hyperliquid’s growing ecosystem. By distributing tokens across contributors, early supporters, investors, and the community, the protocol aims to cultivate balanced participation in shaping its future. 

As liquid staking continues expanding across decentralised finance, governance tokens like KNTQ help ensure that protocols evolve with transparency and collective input. Kinetiq’s rapid early growth, combined with a structured token distribution, positions it as a significant contributor to Hyperliquid’s onchain economy.

If you are exploring the expanding world of liquid staking and governance tokens, understanding KNTQ can offer valuable insight into how decentralised protocols develop over time.

You can follow market activity, track token listings, and explore broader trading opportunities by joining platforms that support a wide range of digital assets.

To start navigating these markets, you may register on Bitrue.com and explore available tools designed for digital asset participation.

FAQ

What is KNTQ?

KNTQ is the governance token of the Kinetiq liquid staking protocol on Hyperliquid’s HyperEVM chain.

How many KNTQ tokens exist?

KNTQ has a maximum supply of one billion tokens.

Who receives the KNTQ airdrop?

Eligible Hypurr holders and kPoints holders receive allocations as part of the initial airdrop.

Why does Kinetiq use a governance token?

The token enables decentralised decision-making and encourages community participation in protocol development.

What is Kinetiq’s main product?

Its primary product is kHYPE, a liquid staking asset with more than one billion dollars in value locked.