Hyperliquid’s Layer 2 ‘Elysium’ Unveiled by Kinetiq

Kinetiq is positioning itself not just as a staking layer but as infrastructure that routes activity back to HyperCore, which matters because it makes the protocol's growth and Hyperliquid's core chain mutually reinforcing rather than competing. Tying HYPE to gas and directing half of sequencer revenue into KNTQ buybacks gives both assets a shared incentive structure, a notable alignment in a liquid staking landscape where such feedback loops are uncommon. The open question is whether PropAMM and PaperTrade attract enough genuine activity to make sequencer revenue meaningful, or whether the design remains a token-alignment story without organic demand.