TL;DR
- The dYdX community approved proposal #313, raising the share of net protocol revenue allocated to DYDX buybacks from 25% to 75%.
- The program is complemented by a new allocation, with 5% of revenue going to the Treasury SubDAO and another 5% to the MegaVault.
- The measure will strengthen the link between protocol performance and holder incentives, increasing token demand on the open market.
The dYdX community approved a major change in the protocol’s revenue distribution, raising the share of net fees allocated to DYDX buybacks from 25% to 75%.
The decision was evaluated through proposal #313, which received the support of 59.38% of voters on the governance forum, representing a significant adjustment in the platform’s economic incentives.
The original buyback program, launched in March 2025, allowed one-fourth of the protocol’s net revenue to be used to repurchase DYDX on the open market and stake those tokens. Under the new proposal, buybacks will account for three-fourths of net revenue, while 5% will go to the Treasury SubDAO and another 5% to the MegaVault, ensuring stable funding for the rest of the protocol’s structure.
The measure aims to reduce DYDX’s circulating supply and strengthen network security. According to the platform team, once implemented, “75% of protocol fees will be used to buy back tokens on the open market.” This increase will reinforce the connection between the protocol’s economic performance and holder incentives, offering a mechanism that rewards participation and long-term commitment.
dYdX Refines Tokenomics to Revitalize Its Ecosystem
The exchange is implementing a strategy to refine its tokenomics. Token emissions, scheduled to decline in June 2025, are now complemented by the enhanced buybacks, aiming to balance liquidity, market value, and network security. The community is closely monitoring how resources are distributed and how incentives align between the platform and investors.
This change will have direct implications for token price dynamics. By increasing DYDX demand on the open market, buybacks may exert upward pressure on the token’s value, while staking will keep assets out of circulation, reinforcing relative scarcity. Additionally, the scheme enhances effective community governance, giving users direct influence over critical decisions regarding the token economy and the protocol’s sustainability strategy.
dYdX aims to revitalize its position and reputation in the DeFi ecosystem, offering its community a stronger incentive structure and a tokenomics model oriented toward platform growth
