The dYdX Community is launching the first-ever $DYDX Buyback Program, reinforcing long-term confidence in the token and strengthening its role in the ecosystem. Starting today, 25% of net protocol fees will be allocated to monthly buybacks, systematically acquiring $DYDX from the open market and staking it to enhance network security. Here's what you need to know:
This initiative marks a significant milestone for dYdX tokenomics, further aligning platform growth with the role of the DYDX token in the ecosystem. Here's what you need to know:
- dYdX community launches the first-ever $DYDX Buyback Program
- 25% of net protocol fees allocated to systematic monthly buybacks, enhancing network security
- Spot Trading and EVM Support set to expand dYdX’s capabilities, enabled by IBC Eureka
Here’s How Protocol Revenue is Now Distributed
Over the past year, 100% of dYdX's protocol revenue has been distributed to ecosystem participants. The launch of the Buyback Program builds on this foundation by introducing a structured mechanism to further align protocol success with the $DYDX token.
With the Buyback Program now in effect, net protocol revenue is allocated as follows:
- 10% – Treasury SubDAO for financial sustainability initiatives
- 25% – MegaVault
- 25% – Buyback Program
- 40% – Staking Rewards
This structure ensures that protocol revenue is strategically reinvested into the ecosystem, strengthening network security, governance, and long-term sustainability. While the initial allocation dedicates 25% of net protocol fees to buybacks, ongoing community discussions are exploring the possibility of increasing this percentage up to 100% over time.
Strengthening DYDX: Aligning the Token with Platform Growth
The launch of the Buyback Program comes at a pivotal moment for dYdX. The protocol is undergoing one of its most ambitious evolutions yet, with Spot Trading, Multi-Asset Margining, and EVM Support on the horizon, enabled by IBC Eureka. These innovations are designed to expand dYdX’s capabilities and onboard the next generation of traders to DeFi.
With dYdX Unlimited live since November 2024 and a fully reimagined mobile trading experience introduced in February 2025, dYdX is laying the foundations for long-term growth. In 2024 alone, the protocol generated $270B in trading volume and $46M in net protocol fees across 150 markets, bringing cumulative trading volume past $1.46T since 2021.
The Buyback Program is designed to ensure that, as the platform grows, so does the alignment with the $DYDX token and its role in the ecosystem.
Enhancing DYDX Tokenomics: Supply, Unlocks, and Long-Term Alignment
The introduction of the Buyback Program further reinforces $DYDX tokenomics at a key point in its emission schedule. As of March 1, 2025, 85% of $DYDX tokens have already been unlocked, with emissions set to decrease by 50% from June 2025. Since launching in 2021, $DYDX has reached a more advanced stage in its adoption cycle, with all token unlocks set to conclude by June 2026.
Another major shift in the token ecosystem took place with the 2023 migration from Ethereum to the dedicated dYdX Layer 1. While 86% of tokens are now on dYdX Chain, approximately 14% remain on Ethereum as ethDYDX. The dYdX Community has proposed discontinuing support for the cross-chain bridge in June 2025, which could remove any unbridged ethDYDX tokens from circulation on the dYdX Layer 1. Token holders have been consistently encouraged to consider bridging their ethDYDX tokens before the deadline. More information on how to bridge is available here.
Additionally, the dYdX Community Treasury holds approximately 190 million $DYDX tokens, 19% of the total supply, reserved for future community-driven initiatives. This ensures that resources remain available to further develop and scale the protocol.
A Community-Led Commitment to Reducing Circulating Supply
As with all DYDX token-related changes, the Buyback Program was introduced through community governance, reinforcing dYdX’s decentralized approach to decision-making. As the program takes effect, discussions are already underway about the possibility of expanding it further.
If the allocation to buybacks were to increase to 100% of net protocol fees, it could significantly accelerate the reduction of tokens in circulation while further strengthening network security and validator incentives. This ongoing governance discussion highlights the community’s active role in shaping the protocol’s long-term economic model.
With a proven track record of innovation, strong financial backing, and a rapidly expanding ecosystem, dYdX is well-positioned to support this long-term initiative in collaboration with its growing community of traders, validators, and token holders.
Stay Involved
The dYdX Community remains at the forefront of these conversations, and participation in governance discussions is encouraged. To stay updated on the latest developments and have your say in shaping the future of dYdX, visit the forum, Discord or Twitter and join the conversation.
To participate more actively in dYdX governance, you’ll need to stake DYDX. Here’s how you can get started.
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