What scaleWei Changes Across Balances, Orders and Supply
Hyperliquid plans to extend HIP-1 with a deployer-controlled scaleWei function that proportionally adjusts token balances across all holders. The mechanism resembles an on-chain stock split and can also support airdrops, dividends, repricing and reverse mergers. According to the report, open orders will be cancelled and replaced according to the effective ratio, calculations round down and totalWei may become negative. The initiating address can be a Core-to-EVM system address or a treasury address designated and signed by the deployer. Corporate-action mechanics become programmable, but deployer authority, order handling and accounting consistency now converge in one sensitive operation.
Why Rounding Down and Negative totalWei Create Audit Gaps
Economic value may remain similar through a rebase even though token quantity, order size and displayed price all change. Rounding down can accumulate residual differences across many small accounts, while a reverse merger may reduce tiny balances to zero. If exchanges, custodians and tax systems do not switch at the same block, total supply, customer balances and trade history will disagree. Cancelling and replacing open orders may also alter queue priority or create unexpected execution differences during volatility. A compromised deployer or treasury key could turn a legitimate corporate-action feature into unauthorized dilution or repricing. Compliance teams should separate verified facts, third-party attribution and market inference. Every entity label needs provenance, an update time and a confidence level, and material conclusions should receive human review before they influence customer restrictions or public reporting.
Every Rebase Needs a Replayable On-Chain Reconciliation Snapshot
Trustformer KYT should classify every scaleWei call as a distinct corporate-action event and retain the initiator, signature, ratio, effective block, affected accounts and replacement-order results. A pre-event snapshot captures balances, supply and the order book; post-event reconciliation calculates expected balances and books rounding differences separately. Venues should verify that the deployer belongs to the authorized set and that the on-chain ratio matches the public notice. An abnormal call can pause deposits, withdrawals and collateral valuation. Replayable evidence allows auditors to prove how value was transformed and helps resolve whether a discrepancy came from policy, rounding or unauthorized execution. The control record should preserve the triggering rule, reviewed addresses, timestamps, analyst conclusion and final disposition. Periodic review can remove stale labels and recalibrate thresholds, reducing false positives while keeping the evidence available for audit, investigations and customer support. Protocol-upgrade assurance should test not only whether the function passed code review, but also whether execution blocks, event logs and venue mirrors agree. When negative totals or reverse mergers are possible, customer notices, dispute handling and valuation rules must be defined in advance so technical parameters do not become an unexplained customer loss. External systems need an explicit event schema containing the original unit, adjusted unit, ratio, effective block and rounding method. Without it, historical charts can show artificial price jumps, tax lots can duplicate value and sanctions-screening systems may treat replacement orders as new economic activity. The issuer should publish a signed notice before execution and a completion report afterward. Exchanges can compare both notices with on-chain facts. A discrepancy in ratio, signer or block height should stop automatic processing and create an incident, even if the resulting balances appear economically plausible.