dYdX has launched a buyback program, committing 25% of protocol fees, with discussions ongoing about increasing this to 100%.
DYDX, the governance token of the decentralized derivatives exchange dYdX, surged nearly 7% to $0.72 after the platform revealed its latest buyback initiative. The program sets aside 25% of monthly protocol fees for repurchasing DYDX tokens from the open market.
The initiative aims to strengthen the token’s role within the network and support its economic framework, especially as DYDX has seen a decline of over 78% in value in the past year.
Under the updated protocol revenue distribution, 40% is allocated to stakers, 25% to the buyback program, 25% to the MegaVault for market support, and 10% to treasury operations.
A press release reported that dYdX generated $46 million in net protocol revenue in 2024 from over $270 billion in trading volume. Governance discussions are considering increasing the buyback portion to as much as 100% of protocol fees.
According to a dYdX representative, tokens acquired through the buyback will be staked “for an extended period to reinforce network security.”
The tokenomics of DYDX are also shifting, with emissions set to decrease by 50% starting in June. Most DYDX tokens are already unlocked, with the remainder set to vest by mid-2026, as noted in the press release.
Additionally, a governance proposal is being discussed that may remove unbridged Ethereum-based DYDX tokens from circulation if they are not migrated to the dYdX layer 1 by June.
