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Journalist
Tanzeel Akhtar
Journalist
Tanzeel Akhtar
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Key Takeaways:
- 25% of Net Protocol Fees Allocated to Buybacks – dYdX will use 25% of net protocol fees to systematically buy back $DYDX from the open market and stake it.
- Ongoing governance discussions explore the possibility of increasing buybacks up to 100% of net protocol fees.
- The program aligns with dYdX’s expansion into Spot Trading, Multi-Asset Margining, and EVM Support, making sure $DYDX remains central to the platform’s future development.
dYdX, the decentralized perpetual contracts trading platform community, has launched its $DYDX Buyback Program on Monday.
In a blog post, the firm said this launch is designed to reinforce long-term confidence in the $DYDX token, strengthen its network security, and align platform growth with tokenomics.
From today 25% of net protocol fees will be systematically used to buy back $DYDX from the open market and stake it, ensuring continuous reinvestment into the ecosystem.
How the DYDX Buyback Program Works
The Buyback Program introduces a structured mechanism to utilize protocol revenue in a way that directly benefits the dYdX ecosystem.
With the new structure in place, net protocol revenue is now distributed as follows: 10% – Treasury SubDAO for financial sustainability initiatives, 25% – MegaVault, 25% – Buyback Program and 40% – Staking Rewards.
The firm said ongoing governance discussions suggest that the allocation for buybacks could increase up to 100% over time, potentially leading to further reductions in circulating supply.
The ‘dYdX Tokenomics’ Phase
The launch of the Buyback Program is an important phase in $DYDX tokenomics. As of March 1, 2025, 85% of $DYDX tokens have been unlocked, with emissions set to drop by 50% in June 2025. By June 2026, all token unlocks will be complete, said the firm.
The migration from Ethereum to dYdX’s Layer 1 in 2023 is also reshaping the token landscape. So far 86% of $DYDX tokens are on the dYdX Chain, while 14% remain on Ethereum as ethDYDX.
The dYdX Community has also proposed discontinuing support for the cross-chain bridge in June 2025, which could lead to the removal of unbridged ethDYDX tokens from circulation, further tightening supply.
The dYdX Community Treasury holds approximately 190 million $DYDX tokens (19% of total supply), reserved for future community-driven initiatives, ensuring long-term sustainability and ecosystem growth.
dYdX’s Capabilities: Spot Trading & EVM Support
With dYdX Unlimited launched in November 2024 and a reimagined mobile trading experience released in February 2025, the protocol is evolving.
In 2024 alone, dYdX generated $270 billion in trading volume and $46 million in net protocol fees across 150 markets, pushing its cumulative trading volume past $1.46 trillion since 2021.
The Buyback Program ensures that as dYdX scales, so does the alignment between platform growth and the $DYDX token, securing its role in the ecosystem.
Like all major changes in the dYdX ecosystem, the Buyback Program was introduced through community governance, reinforcing dYdX’s commitment to decentralization. As the initiative rolls out, discussions about expanding its impact are already underway.
If the buyback allocation were to increase to 100% of net protocol fees, it could significantly accelerate token reduction, enhance network security, and strengthen validator incentives. This ongoing governance debate highlights the community’s active role in shaping the protocol’s long-term economic model.
The dYdX Buyback Program is a major step toward strengthening $DYDX tokenomics and ensuring long-term alignment between platform success and token value.
With upcoming advancements in Spot Trading, EVM Support, and expanded trading features, dYdX said it is setting the stage for the next phase of decentralized finance.
dYdX Updates Roadmap for Faster Trading
Earlier this month, dYdX released a major roadmap update detailing improvements to optimize trading speed, stability, and user experience.
The update focuses on resolving platform reliability issues, accelerating deposit and withdrawal speeds, and refining the web interface with new features.
