The dYdX community has launched its first $DYDX token buyback program, marking a significant strategic step to strengthen trust in the token and its role in the ecosystem. Starting today, 25% of the protocol's net fees will be allocated to monthly buybacks, enabling DYDX to be systematically purchased from the open market and deposited to enhance network security.
This initiative marks a significant milestone in the economics of dYdX tokens, aligning the platform's growth with the role of the DYDX token. The protocol's revenue is now distributed as follows: 10% for financial sustainability initiatives, 25% for MegaVolt, 25% for the buyback program, and 40% for staking rewards. This structure ensures that protocol revenue is strategically reinvested in the ecosystem.
With the buyback program now in effect, this initial allocation is a step toward enhancing network security, governance, and long-term sustainability. Discussions are underway to explore the possibility of increasing the buyback percentage to 100% over time.
The dYdX protocol is undergoing ambitious developments, including instant trading and EVM support thanks to IBC Eureka. These innovations are designed to expand dYdX's capabilities and integrate the next generation of traders into decentralized finance (DeFi). Since launching dYdX Unlimited in November 2024 and introducing a new trading experience in February 2025, the protocol has achieved $270 billion in trading volume and $46 million in net fees across 150 markets.
Furthermore, the launch of the buyback program enhances the effectiveness of DYDXD tokens, marking a significant milestone in their issuance schedule. As of March 2025, 85% of DYDX tokens have been issued, and issuance is expected to decline by 50% starting in June 2025. The community also proposed discontinuing cross-chain bridge support by June 2025.
Ultimately, the buyback program reflects the dYdX community's commitment to reducing the circulating supply and strengthening the protocol's long-term economic model. With ongoing discussions about the possibility of increasing the buyback allocation to 100%, this could significantly enhance network security and validator incentives.
