dYdX Announces Buyback Program, Boosting Token Value

The decentralized derivatives platform will now allocate 25% of its protocol fees to repurchasing DYDX tokens from the market. This strategy is aimed at boosting the token’s value and reinforcing the platform’s security.

In a move revealed on March 24, dYdX introduced the buyback plan, marking the first time the exchange has implemented such a strategy. A spokesperson explained that the goal is to prevent external control over the token supply, as repurchased tokens will be held for the long term.

Previously, all protocol earnings were distributed among active participants, such as stakers and liquidity providers. Under the new structure, 25% of those funds will go toward the buyback, with another 25% directed into the MegaVault program. The remaining 10% will be allocated to the treasury, while 40% will continue to reward stakers.

The announcement has sparked discussions within the community about the potential for expanding the buyback percentage. Some have even speculated that, in the future, the buyback could absorb 100% of net protocol revenue, which would further reduce the total supply of DYDX tokens.