What should be done with dividends and stock splits after the stock is listed on the chain? XStocks has just logged into Hyperliquid, and HIP-1 is preparing to fill in this crucial puzzle A few days ago, we were still discussing that the first batch of 5 tokenized stocks and ETFs from xStocks have landed on the HyperCore spot market NVIDIA, S&P 500 ETF, Nasdaq 100 ETF, SK Hynix, and Micron have started trading on Hyperliquid in the form of tokenized spot trading But making stocks tradable only solves the first step If a stock is to be held for a long time, it will also encounter corporate actions such as dividends, stock splits, reverse stock splits, stock dividends, and mergers and acquisitions for stock swaps Traditional securities firms will automatically handle these changes in the background, but when stocks become on chain tokens, who should do these things? Recently, Hyperliquid announced a HIP-1 extension feature based on feedback from Builder: scaleWei The name sounds technical, but it solves a very direct problem: the deployment party can allocate another asset to all users at once based on the proportion of a certain token they hold, or adjust the balance of the original token uniformly Simply put, the system first checks how many stock tokens each person holds, and then automatically completes dividends, stock splits, or stock exchanges according to their holding ratios First, let's talk about how scaleWei runs This feature includes four core parameters: Token: a token to be distributed or adjusted Total Wei: The total quantity that needs to be allocated this time ReferenceToken: a reference token used to calculate the user's holding ratio SystemAddress: Provide the system address for asset allocation or the deployment party's vault The system reads the balance of the referenceToken held by the user, and then assigns the tokens in systemAddress to them according to their respective proportions The entire process is completed in one atomic operation, either all successful or all failed, without intermediate states where some users have received and others have not yet received Its most direct application is cash dividends Assuming there are 1 million NVDAX in circulation, with one user holding 10000, accounting for 1%. If the issuer intends to allocate 1 million USDCs to NVDAX holders, this user can receive 10000 USDCs based on their holding ratio This is similar in economic effect to cash dividends from stocks, but it does not mean that Hyperliquid will automatically determine when Nvidia will distribute dividends The company's actions still need to be confirmed by issuers such as xStocks and Backed, and dividend assets also need to be deposited into designated vaults in advance HIP-1 is responsible for solving the execution problem: when the allocation conditions have been determined, how to send assets to all holders in a one-time and verifiable manner according to the on chain position ratio The second application is stock dividends If the distributed token is the same as the reference token, the issuer can continue to distribute the same stock token based on the user's original balance. For example, a user holding 100 tokens will receive an additional 5 tokens according to the company's action rules The third application is stock splits Assuming a company is undergoing 1 dismantling 2. In traditional markets, investors originally held 100 shares, but after the stock split, it would become 200 shares, theoretically halving the stock price. However, the total holding value and ownership ratio would not change as a result On Hyperliquid, the system not only adjusts user balances, but also processes pending orders in the order book that have not yet been completed Otherwise, it is possible that the token balance has doubled, but the order book still retains the price and quantity before the stock split The announcement shows that when the token is the same as the reference token, scaleWei can be used to re measure the same token. The protocol will cancel and re list the relevant orders according to the adjustment ratio, allowing the price and quantity to match the new units after the stock split For example, before a stock split, a user placed an order to sell 10 tokens for $200. After completing a 1-to-2 split, the reasonable result should be to sell 20 tokens for approximately $100 instead of continuing to use the pre split quote Reverse stock splits can also be processed by adjusting the balance in the opposite direction. For example, if 10 shares are merged into 1 share, the number of tokens will decrease, and the price of a single token will correspondingly increase, but the proportion of users in the total supply theoretically remains unchanged In addition, scaleWei can also support mergers and acquisitions, stock exchanges, or token migration If a company is acquired by another company, the original shareholders need to receive shares of the new company in a fixed proportion. The system can read the number of old tokens held by users and allocate another new token proportionally Similar mechanisms can also be used for token upgrade migration, protocol revenue distribution, project vault payments, community rewards, position snapshot distribution, and more But its appearance at the current time point makes it difficult not to associate it with xStocks Because after the launch of xStocks, dividends and stock splits are no longer hypothetical needs. NVDAX, SPYX, QQQX, SKHYX, and MUX all correspond to stocks or ETFs in the real world. As long as these assets continue to be traded on Hyperliquid, the actions of underlying securities must be accurately reflected on the chain If Nvidia splits again, the balance, price, and order book of NVDAX need to be adjusted synchronously If the S&P 500 ETF distributes dividends, the corresponding economic equity of SPYX holders also needs to be processed Without these capabilities, tokenized stocks can only be used to trade prices. Only by supplementing these capabilities can they be closer to a long-term held on chain security asset So scaleWei may seem like a small feature, but its actual significance may be greater than we imagine The truly complex aspect of the stock market is never just providing a buy and sell button A securities firm also needs to handle: dividend receipt, stock split and reverse split, stock dividends, merger and acquisition conversion, order adjustment, balance reconciliation These features may not attract attention like the launch of new assets, but they determine whether a stock trading system can operate for the long term Of course, several boundaries must be specified here The announcement describes the deployment capabilities of HIP-1 that are ready to be extended, and currently cannot be written as xStocks. On chain dividends have been officially enabled Secondly, scaleWei does not create profits out of thin air. If USDC or other assets are to be distributed to holders, the designated treasury must have sufficient balance in advance. It is only a distribution and re measurement tool, not an automatic dividend generating income system Thirdly, the deployment party holds the triggering power of the functionality. Users still need to trust the issuer to correctly identify company actions, prepare sufficient assets, and set the correct allocation parameters Fourthly, this atomic function only exists in HyperCore. The announcement specifically mentions that there are no identical atomic operations on HyperEVM. If HIP-1 tokens are simultaneously associated with HyperEVM contracts, the contract side may need to perform corresponding operations to keep the balances on both sides consistent So scaleWei did not solve all the problems of tokenized stocks at once. What it added was a very critical layer: allowing HyperCore to allocate assets according to the position ratio, adjust token balances, and synchronously process unexecuted orders during stock splits Looking at recent updates together, Hyperliquid's product roadmap is gradually becoming clearer: HIP-3 is responsible for bringing the price exposure of stocks, indices, and commodities onto the chain XStocks is responsible for bringing tokenized spot trading backed by real securities to HyperCore Allowlist prepares licensed market entry for regulated funds ScaleWei begins to handle dividends, stock splits, and asset conversions that occur during the stock holding period If HIP-3 brings the prices of global assets onto the chain, xStocks brings the assets themselves onto the chain So what ScaleWei adds is the company action that must be dealt with when these assets exist on the chain for a long time HYPE Hyperliquid HIP1 xStocks RWA