What Is Kinetiq? kHYPE, KNTQ and the Elysium Chain
What is Kinetiq? The Hyperliquid liquid staking protocol behind kHYPE, the KNTQ governance token and the new Elysium layer 2. How each piece works and fits together.
DegenKitNovember 11, 2026 · 5 min read
Kinetiq is a liquid staking protocol on Hyperliquid. You stake HYPE and receive kHYPE, a token that earns staking rewards and can still be used in DeFi. Kinetiq also has a governance token, KNTQ, and on November 9, 2026 it launched Elysium, a layer 2 for Hyperliquid that uses HYPE for gas.
How does kHYPE work?
- Stake. Connect a wallet on Kinetiq's stake page and stake HYPE on HyperEVM. HYPE held on HyperCore must first be moved to HyperEVM in Hyperliquid's app.
- Hold kHYPE. You receive kHYPE. Kinetiq's docs say rewards accrue automatically, and kHYPE can be used across HyperEVM DeFi.
- Unstake. Queue a withdrawal. Kinetiq lists a 1-day delegation lockup plus a 7-day unstaking queue, so about 8 to 9 days in total. Then kHYPE is burned and HYPE is returned.
To exit faster, you can swap kHYPE on a DEX, with possible slippage. Kinetiq takes a 10% fee on staking rewards. Its docs say 70% of that fee buys KNTQ on the open market and 30% goes to the treasury.
What is KNTQ?
KNTQ is Kinetiq's governance token. The Defiant reported its unveiling on October 22, 2025, describing it as a way for holders to "participate in decisions shaping the Kinetiq liquid staking protocol". Cryptonomist reported a maximum supply of 1 billion and these allocations:
| Allocation | Share |
|---|---|
| Protocol growth and rewards | 30% |
| Initial airdrop | 25% |
| Core contributors | 23.5% |
| Kinetiq Foundation | 10% |
| Investors | 7.5% |
| Liquidity | 4% |
Cryptonomist also reported Kinetiq's total value locked at over $1.6 billion at that time. That figure changes daily.
What does Kinetiq have to do with Elysium?
Kinetiq built Elysium, a layer 2 on the Arbitrum Platform, operated with Conduit, that settles to HyperEVM. It went live on November 9, 2026. According to Kinetiq's release:
- gas is paid in HYPE, bridged 1:1 from HyperEVM,
- blocks arrive every 100 ms,
- 50% of sequencer revenue is used for KNTQ buybacks, and 25% goes to builders.
So Kinetiq now runs both a staking product and a chain. Our guide to what Elysium chain is covers the chain itself, and Elysium vs HyperEVM compares the two layers.
What does this mean for token creators?
If you plan to launch on Elysium, three points matter:
- You pay gas in HYPE, not kHYPE or KNTQ. See what the HYPE token is.
- Your trading activity adds sequencer revenue, which Kinetiq directs partly to KNTQ buybacks. It does not change your costs.
- You can create a token without code on DegenKit's Elysium launcher for 1 HYPE plus gas.
What are the risks?
- Smart contract risk: staking protocols and new chains can have bugs.
- Exit delay: unstaking kHYPE takes days, and bridging out of Elysium takes about 5.5 days.
- Depeg risk: kHYPE can trade below the HYPE it represents on DEXs.
- Young chain: Elysium is days old and runs a single sequencer at launch.
You can lose money in crypto. This is not financial advice.
FAQ
Is Kinetiq the same as Hyperliquid?
No. Kinetiq is a separate team building on Hyperliquid. It runs kHYPE staking and the Elysium chain.
How long does it take to unstake kHYPE?
About 8 to 9 days through Kinetiq: a 1-day lockup and a 7-day queue.
Do I need KNTQ to use Elysium?
No. Gas on Elysium is paid in HYPE. KNTQ is a governance token.
Sources
- Kinetiq docs: kHYPE
- The Defiant: Kinetiq unveils KNTQ governance token
- Cryptonomist: Kinetiq tokenomics and KNTQ
- Kinetiq launch release (GlobeNewswire via The Manila Times)
To create a token on Kinetiq's chain, use the DegenKit Elysium token creator.
