dYdX Introduces First-Ever Buyback Program to Strengthen Tokenomics

The dYdX community has officially launched its first-ever DYDX buyback program, marking a significant milestone in the decentralized exchange’s (DEX) long-term growth strategy. The program will allocate 25% of net protocol fees to systematically buy back DYDX tokens from the open market every month, reinforcing the protocol’s commitment to its ecosystem and token holders.

A Milestone for dYdX Tokenomics

This initiative reflects dYdX’s ongoing effort to align the platform’s success with the value of the DYDX token. Since its inception in 2021, dYdX has facilitated over $1.46 trillion in cumulative trading volume, with $270 billion in trading volume and $46 million in net protocol fees generated in 2024 alone.

With the introduction of Spot Trading, Multi-Asset Margining, and EVM Support—enabled by IBC Eureka—the protocol is expanding its capabilities. The buyback program aims to enhance DYDX tokenomics while reinforcing network security as dYdX scales.

How the Buyback Program Works

Starting immediately, 25% of dYdX’s net protocol fees will be used to purchase DYDX tokens on the open market. These tokens will then be staked to strengthen network security and validator incentives. The revenue breakdown for dYdX is now as follows:

• 10% – Treasury SubDAO (financial sustainability initiatives)
• 25% – MegaVault
• 25% – Buyback Program
• 40% – Staking Rewards

This structure ensures that protocol revenue is reinvested into the ecosystem, supporting governance, sustainability, and long-term value creation.

The first-ever $DYDX Buyback Program is here 🚨

Starting today, 25% of dYdX net protocol fees will be used to buy back DYDX tokens from the open market every month—reinforcing long-term commitment to the ecosystem.

More products. More growth. More value. pic.twitter.com/1XsD1uyb34

— dYdX (@dYdX) March 24, 2025

Reducing Circulating Supply and Strengthening Network Security

The DYDX buyback program also plays a role in reducing circulating supply. Currently, 85% of DYDX tokens have already been unlocked, and emissions are set to decrease by 50% from June 2025. The community is actively discussing increasing the buyback allocation to as much as 100% of net protocol fees, which could significantly accelerate the reduction of tokens in circulation while bolstering validator rewards.

Meanwhile, the transition from Ethereum to the dYdX Layer 1 blockchain has further reshaped DYDX’s tokenomics. 86% of DYDX tokens are now on dYdX Chain, while 14% remain as ethDYDX on Ethereum. The community has proposed discontinuing support for the cross-chain bridge in June 2025, potentially removing unbridged ethDYDX tokens from circulation.

What’s Next?

The dYdX Community Treasury currently holds 190 million DYDX tokens (19% of total supply), ensuring that ample resources remain available for future community-driven initiatives. As governance discussions continue, the possibility of expanding the buyback program will remain a key topic.

With a fully reimagined mobile trading experience, a growing multi-chain ecosystem, and now a structured token buyback initiative, dYdX is positioning itself as a leading force in decentralized finance (DeFi).

For those interested in participating in governance, staking DYDX, or staying updated, dYdX encourages engagement through its forum, Discord, and Twitter.

Community Reaction

• Mixed – Some see it as a positive step, others question its impact.

@ryan5511888: Is the buyback just another scam restart?
@vahe2021: Why stake if rewards are this low? Who voted for this?
@CryptoSmartEd: A step in the right direction. Still a long way to go!

Will this buyback actually strengthen DYDX, or is it just optics?