- dYdX has introduced a Buyback Program, that would allocate 25% of the money made from fees monthly to buy and stake its tokens, with the goal of enhancing security and the token utility.
- 86% of dYdX tokens are available on dYdX Chain, with discussions coming up on banning Ethereum-based ethDYDX by June 2025.
dYdX, a decentralized exchange platform, has launched a buyback plan set out to improve the security of the token and further increase its usefulness. Over 85% of these tokens have been unlocked and are currently in circulation. The buyback program aims to add more value to the ecosystem.
On March 24, dYdX announced its plan to use 25% of its net fees every month to buy dYdX from the market and then stake it to further improve network security. If the project goes on successfully, this amount “staked” could increase to 100% of revenue.
Following the news release, dYdX Token rose almost 7% to a high of $0.72, despite the fact that it lost over 78% in the past year. This program is said to help strengthen investors’ confidence in the token and further reinforce its role in the platform’s economic system.
How dYdX Plans to Distribute Revenue
Previously, all the earnings from dYdX went to members of the ecosystem, but with the new buyback program, changes would be made to the distribution. Now, 40% goes to staking rewards, 25% each to the MegaVault and buybacks, and the other 10% goes to the Treasury SubDAO for financial stability.
This setup aims to reinvest more money into the ecosystem, which would help improve security, governance, and foster long-term growth. While the program currently uses 25% of net fees for buybacks, more discussions are ongoing about raising this amount to 100%.
How the Buy Back Program Strengthens dYdX Tokenomics
The Buyback Program strengthens DYDX tokenomics as it comes closer to its release schedule. By March 1, 2025, 85% of dYdX tokens had already been issued, with emissions set to drop by half from June 2025. Since 2021, after dYdX launched, it has advanced in adoption, with all releases expected to end by June 2026. A major change occurred in 2023 when the network moved from Ethereum to its own Layer 1.
As of the time of writing, 86% of tokens exist on dYdX Chain, while the other 14% remain on Ethereum as ethDYDX. The community has suggested ending support for the cross-chain bridge in June 2025, which could possibly remove unbridged ethDYDX from circulation permanently.
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