Yang argues Hyperliquid's priority fees update will substantially reshape market structure by disadvantaging latency-focused market makers like Alber Blanc and Pinely who currently dominate the exchange.
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Matteo explains why Hyperliquid's priority-fee revenue hasn't ramped: validators must explicitly enable the gossip priority config and most haven't, so winning the auction today doesn't guarantee prioritized mempool access. Pre-upgrade, API traders paid validators tens of thousands/month for sentry peering — the new mechanism internalizes that, adding ~$500K–$1M/mo HYPE buying pressure immediately. BIS estimates $5B/yr global HFT extraction; HL growth-mode markets charge 0.45–0.9bps — capturing priority could roughly double protocol revenue on those. Bold take: priority fees become >50% of HL's revenue in a few years if TradFi flow grows.