dYdX Community Launches First-Ever DYDX Buyback Program

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 this migration 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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Legitimacy and Disclaimer

Crypto-assets can be highly volatile and trading crypto-assets involves risk of loss, particularly when using leverage. Investment into crypto-assets may not be regulated and may not be adequate for retail investors. Do your own research and due diligence before engaging in any activity involving crypto-assets.

dYdX is a decentralised, disintermediated and permissionless protocol, and is not available in the U.S. or to U.S. persons as well as in other restricted jurisdictions. The dYdX Foundation does not operate or participate in the operation of any component of the dYdX Chain’s infrastructure.

The dYdX Foundation’s purpose is to support the current implementation and any future implementations of the dYdX protocol and to foster community-driven growth in the dYdX ecosystem.

The dYdX Chain software is open-source software to be used or implemented by any party in accordance with the applicable license. At no time should the dYdX Chain and/or its software or related components be deemed to be a product or service provided or made available in any way by the dYdX Foundation. Interactions with the dYdX Chain software or any implementation thereof are permissionless and disintermediated, subject to the terms of the applicable licenses and code. Users who interact with the dYdX Chain software (or any implementations thereof) will not be interacting with the dYdX Foundation in any way whatsoever. The dYdX Foundation does not make any representations, warranties or covenants in connection with the dYdX Chain software (or any implementations and/or components thereof), including (without limitation) with regard to their technical properties or performance, as well as their actual or potential usefulness or suitability for any particular purpose, and users agree to rely on the dYdX Chain software (or any implementations and/or components thereof) “AS IS, WHERE IS”.

Nothing in this post should be used or considered as legal, financial, tax, or any other advice, nor as an instruction or invitation to act by anyone. Users should conduct their own research and due diligence before making any decisions. The dYdX Foundation may alter or update any information in this post in the future at its sole discretion and assumes no obligation to publicly disclose any such change. This post is solely based on the information available to the dYdX Foundation at the time it was published and should only be read and taken into consideration at the time it was published and on the basis of the circumstances that surrounded it. The dYdX Foundation makes no guarantees of future performance and is under no obligation to undertake any of the activities contemplated herein.