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+# Hyperliquid Policy Center
+
+**Type:** Nonprofit advocacy organization  
+**Founded:** February 18, 2026  
+**Location:** Washington D.C.  
+**Funding:** $29M in HYPE tokens  
+**Parent:** Hyperliquid  
+**Status:** Active  
+
+## Overview
+
+The Hyperliquid Policy Center is a Washington D.C.-based nonprofit advocacy organization focused on regulatory frameworks for decentralized exchanges, perpetual futures, and blockchain-based market infrastructure.
+
+## Funding Model
+
+The Policy Center represents a novel mechanism in crypto governance: community-funded regulatory lobbying. The $29M allocation comes directly from HYPE token value, which derives from protocol revenue generated by trader fees. This creates an alignment chain where regulatory investment connects to token holder returns:
+
+1. Protocol generates revenue from trader fees
+2. Revenue accrues to HYPE token value
+3. Community allocates HYPE tokens to Policy Center
+4. Policy Center advocates for favorable DEX perpetuals regulation
+5. Favorable regulation benefits Hyperliquid as market leader
+6. Increased protocol usage increases revenue, benefiting HYPE holders
+
+## Strategic Context
+
+The Policy Center launch coincided with:
+- CFTC ANPRM on prediction markets (March 2026)
+- CLARITY Act Congressional discussion (2026 session)
+- Hyperliquid's Ripple Prime integration (early February 2026)
+
+This timing suggests a two-track institutional strategy: capture institutional liquidity through prime brokerage access while simultaneously shaping the regulatory environment.
+
+## Significance
+
+The $29M scale is comparable to major financial incumbent lobbying budgets, demonstrating that community-owned protocols without VC backing can generate sufficient capital surplus to fund regulatory advocacy that VC-backed protocols typically defer to their investors.
+
+## Timeline
+
+- **2026-02-18** — Launched with $29M HYPE token allocation
+
+## Sources
+
+- CoinDesk: https://www.coindesk.com/policy/2026/02/18/hyperliquid-starts-defi-lobbying-group-with-usd29-million-token-backing
+- Fortune: https://fortune.com/crypto/2026/01/12/hyperliquid-jeff-yan-defi-perpetuals-perps-decentralization-growing-up/
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