The dYdX community has kicked off its first-ever DYDX Buyback Program, taking a big step toward reinforcing the token’s value and utility. From this month onward, 25% of the protocol’s net fees will be allocated to purchasing DYDX tokens from the market. These tokens will then be staked, boosting network security and ensuring the token remains closely tied to the platform’s continued expansion.
How Protocol Revenue will be used
Previously, all of dYdX’s protocol revenue was distributed among ecosystem participants. With this buyback program in place, funds will now be allocated as follows:
- 10% – Treasury SubDAO (supports financial initiatives)
- 25% – MegaVault
- 25% – Buyback Program
- 40% – Staking Rewards
There’s already discussion within the community about potentially increasing the buyback allocation to 100% in the future, which could further reduce the circulating supply.
dYdX is stepping into a fresh chapter of growth, unveiling significant enhancements to its platform. The exchange is rolling out Spot Trading, Multi-Asset Margining, and EVM Support—upgrades crafted to streamline trading processes and draw in a larger user base.
In the last year, dYdX has seen remarkable expansion, handling $270 billion in trades and earning $46 million in net protocol revenue throughout 2024. With its overall trading volume surpassing $1.46 trillion, the platform has firmly established itself as a leading force among decentralized exchanges.
By March 2025, about 85% of DYDX tokens will already be out in the market, so this buyback program comes at a smart time. With emissions cutting in half come June, the limited supply might make the token scarcer and increase its value down the road. Starting in June 2025, the emission rate will be cut in half, reducing the number of new tokens entering the market. The last round of token unlocks is slated for June 2026.
A defining moment for dYdX came in 2023 when it shifted from Ethereum to its own Layer 1 blockchain. While 86% of tokens have successfully transitioned to the new network, about 14% linger on Ethereum as ethDYDX.
The dYdX community is currently weighing a proposal to discontinue support for the Ethereum-based version of the platform by June 2025. If this move gets the green light, it might lead to the permanent removal of unbridged tokens from circulation.
Given that dYdX operates under community governance, the buyback program emerged as a result of shared decision-making among its members. There’s active debate right now about ramping up the buyback allocation, which would accelerate the reduction of token supply and bolster network security.
With robust support from its community and a well-established base, dYdX is working to solidify its standing in the market while setting the stage for sustained growth in the years ahead.
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