Hyperliquid will require the prediction market deployer to stake 500,000 HYPE tokens, worth approximately $30.4 million.

BlockBeats News, July 20th, Hyperliquid announced plans to introduce a permissionless prediction market deployment mechanism through HIP-4, requiring developers to stake 500,000 HYPE tokens (approximately $30.4 million) to create a prediction market.

This mechanism aims to reduce the risk of low-quality markets, erroneous settlements, or malicious market creation through a capital threshold and penalty mechanism.

According to the Hyperliquid announcement, the permissionless deployment feature will first be available on the testnet and will be deployed to the mainnet through a network upgrade in the future. Validators will vote to establish a standardized outcome template, allowing developers to create markets based on the template, with each deployer initially able to create up to 100 outcome options.

Deployers are responsible for defining market rules and completing settlements as required by the template. The staked HYPE will be locked for 6 months, and if the market definition is unclear, settlements are erroneous, or correct settlements are not completed for over a week, validators can vote to slash the staked assets.

Hyperliquid stated that compared to spot and perpetual contract markets, the scope of predictable events is broader, making permissionless prediction market deployment crucial for expanding on-chain application scenarios. Further adjustments to the related rules may be made before the testnet launch.