# 80% of fees to buybacks for 3 months

**URL:** <https://dydx.forum/t/80-of-fees-to-buybacks-for-3-months/4670>\
**Category:** Proposals\
**Tags:** community-input, drc\
**Created:** [October 28, 2025, 2:52pm UTC](https://dydx.forum/t/80-of-fees-to-buybacks-for-3-months/4670 "2025-10-28T14:52:17Z")\
**Posts on this page:** 1\
**Showing post:** 64

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**Author:** ![staza](https://dub1.discourse-cdn.com/flex013/user_avatar/dydx.forum/staza/32/2134_2.png) [@staza](https://dydx.forum/u/staza)\
**Post date:** [November 4, 2025, 2:15pm UTC](https://dydx.forum/t/80-of-fees-to-buybacks-for-3-months/4670/64 "2025-11-04T14:15:59Z")

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> [@RealVovochka](#):
>
> The DYDX token needs to become an investment asset (staking yield has to be decent), but for now, having just one buyer is simply exit liquidity.

I was thinking on this yesterday-today, analysing current state and the options.

So, this is what I think how protocol can proceed (can be more options, but I compared 3):

**Model 1 – Current one**  
The protocol routes 25% of net revenue to a Buyback Account controlled by the Treasury SubDAO, 25% to the MegaVault and 10% to the Treasury SubDAO. The buybacks are executed periodically via TWAP and purchased DYDX is redelegated. This structure provides minimal real-time price impact and low visible yield.

**Model 2 – Buyback-Centric**  
80% of all protocol revenue is allocated to continuous open-market buybacks of DYDX, with 15% distributed to stakers and 5% retained for the treasury. The purchased tokens are staked. This design creates strong, continuous deflationary pressure and moderate but stable yield for stakers.

**Model 3 – Real-Yield Model**  
95% percent of all protocol revenue is distributed to DYDX stakers in USDC, with the remaining 5% going to the treasury. This model maximizes visible yield (if appropriate marketing means are used to increase the awareness) and creates potentially rapid market repricing, though it is more sensitive to trading volume fluctuations.

I compared these options (with some assumptions) and this is what I got:

 ![image](https://europe1.discourse-cdn.com/flex013/uploads/dydx/original/2X/7/732a7ee166cd53d8ac3f2b30fa845ca2b8ade0e7.png)

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