The dYdX Community has initiated the groundbreaking $DYDX Buyback Program, a strategic move to bolster long-term token confidence and reinforce its utility within the ecosystem. Effective immediately, 25% of net protocol fees will fund monthly buybacks, systematically acquiring $DYDX from open markets and staking it to enhance network security.
Key Highlights of the DYDX Buyback Program
- First-of-its-kind initiative to align tokenomics with platform growth.
- 25% of net fees allocated to monthly buybacks, strengthening ecosystem incentives.
- Spot Trading and EVM Support (enabled by IBC Eureka) to expand dYdX’s DeFi capabilities.
👉 Learn how to participate in dYdX governance
New Protocol Revenue Distribution Model
Previously, 100% of dYdX’s protocol revenue was distributed to ecosystem participants. The Buyback Program introduces a structured reinvestment framework:
| Allocation | Purpose |
|---|---|
| 10% | Treasury SubDAO (financial sustainability) |
| 25% | MegaVault (liquidity incentives) |
| 25% | Buyback Program (market acquisitions) |
| 40% | Staking Rewards (validator incentives) |
This model ensures strategic reinvestment into network security, governance, and long-term growth. Community discussions are exploring increasing buyback allocations to 100% of net fees in the future.
Strengthening DYDX Token Utility Amid Expansion
The Buyback Program coincides with pivotal upgrades:
– Spot Trading and Multi-Asset Margining (launching via IBC Eureka).
– EVM Support to onboard broader DeFi audiences.
Since February 2025, dYdX’s revamped mobile trading experience and dYdX Unlimited (live since November 2024) have driven record adoption:
– $270B trading volume in 2024 across 150 markets.
– $46M net protocol fees, cumulatively surpassing $1.46T since 2021.
👉 Discover dYdX’s latest trading features
Tokenomics Update: Supply Reduction and Long-Term Alignment
As of March 2025:
– 85% of $DYDX tokens are unlocked.
– Emissions will drop 50% post-June 2025, with all unlocks concluding by June 2026.
Key Developments:
- Migration from Ethereum: 86% of tokens now reside on dYdX Chain (14% remain as ethDYDX).
- Bridge Sunset Proposal: Cross-chain support may end in June 2025, urging users to bridge ethDYDX promptly.
The Community Treasury holds 190M $DYDX (19% of supply) for future ecosystem initiatives.
Community Governance and Future Adjustments
The Buyback Program exemplifies decentralized decision-making:
– Potential to increase buybacks to 100% of net fees, accelerating supply reduction.
– Ongoing discussions highlight community-driven economic modeling.
Participate in Governance:
– Stake $DYDX to vote on proposals.
– Join discussions via the dYdX Forum or Discord.
FAQs About the DYDX Buyback Program
1. How does the Buyback Program benefit $DYDX holders?
By reducing circulating supply and staking acquired tokens, the program enhances scarcity and network security, potentially increasing token value.
2. Can the 25% buyback allocation change?
Yes! The community may vote to adjust allocations, with proposals to raise it to 100% of net fees.
3. What happens to unbridged ethDYDX tokens?
If the bridge sunsets in June 2025, unbridged tokens will not migrate to dYdX Chain.
4. How can I participate in governance?
Stake $DYDX and engage in forum/Discord discussions to shape proposals.
5. Where does protocol revenue come from?
Fees are generated from trading activities, with 2024 revenue hitting $46M.
6. Is dYdX available in the U.S.?
No. The protocol is not accessible to U.S. persons or Restricted Persons.
Disclaimer:
This content is for informational purposes only. Crypto investments carry risks, including volatility and potential loss. Conduct independent research before participating. dYdX International Ltd. does not control the protocol or guarantee returns.