Kinetiq, a project in the Hyperliquid ecosystem, said it will launch a new Hyperliquid Layer 2 network called Elysium. The stated goal is to address performance bottlenecks in the current HyperEVM setup and the complexity associated with its dual-block architecture.
HYPE set as the native gas token
According to Kinetiq, Elysium will use HYPE as its native gas token and will combine with HyperCore and HyperEVM. The project said the network will be deployed in close coordination with the Hyperliquid main chain, and that its day-one block production performance is expected to come in well above the current level of HyperEVM.
Customized L1Read precompile for pricing and liquidity data
Kinetiq said Elysium will introduce a customized version of the L1Read precompile contract. That change is meant to make Hyperliquid pricing and liquidity data available to applications and traders on the network, positioning it as a native oracle for the ecosystem.
The project also said Elysium will expose richer market information than the current HyperEVM version. That includes more dimensions of trading data, not just best bid and ask quotes.
Token issuance and a route to deeper market access
Elysium will support token issuance, according to Kinetiq. Projects will be able to start with long-tail asset AMMs, then expand into Elysium's PropAMM and the HyperCore spot order book, before seeking eligibility for perpetual contract listings through HIP-3.
Sequencer fee split includes KNTQ buybacks and burn
Kinetiq also detailed the economic design for the network's sequencer fees:
- 25% will go to application builders that consume block space;
- 25% will be allocated to the Kinetiq treasury;
- 50% will be used for programmatic open-market purchases of KNTQ.
Kinetiq said all KNTQ acquired through that process will be burned and sent to the Hyperliquid Assistance Fund.
Launch said to be approaching
The project said Elysium is coming soon, though it did not provide a specific launch date. Kinetiq added that more technical details and information on core partners will be released over time.