The Treasury SubDAO executes the Buy & Stake program approved by the DAO (stage 1 & 2) — buying DYDX (open market + OTC) and staking it with validators, increasing the delegated stake and strengthening the network security.
Execution results (last 3 months):
| Month | DYDX bought | USDC spent |
|---|---|---|
| Aug | 1,091,967 | $720,375 |
| Sep | 1,026,281 | $668,318 |
| Oct | 230,951* | $82,670 |
*No OTC purchases were executed in October.
The Treasury SubDAO also used the Rev Share address for OTC purchases when Buyback revenues alone could not sustain the intended buying pace.
At present, 25% of dYdX protocol revenue is allocated to DYDX Buybacks, resulting in roughly $386k/month in realised purchases (3-month average).
The Treasury SubDAO currently facilitates around 1 million DYDX purchases per month, funded in USDC through operational inflows, meaning these tokens are NOT directly sold back into the market.
Following ongoing forum discussions, the following redistribution of protocol revenue is being considered:
| Model | Buybacks | Treasury | Megavault | Staking |
|---|---|---|---|---|
| Current | 25% | 10% | 25% | 40% |
| 75% Proposal | 75% | 5% | 5% | 15% |
| 80% Proposal | 80% | 5% | 0% | 15% |
The proposed changes would triple the monthly buyback budget (to reach ~$1.16M USDC/month) but also reduce staking rewards from 40% to 15%.
This reduction represents a significant decline in validator incentives. Staking rewards are a crucial component of the network’s economic security; compressing them may weaken validator retention and motivation to stay online. Such a shift could increase validator churn and exits, thereby undermining the network’s equilibrium and overall security.
We therefore encourage the ecosystem to consider targeted support mechanisms during the transition period in order to preserve validator stability and ensure the network continues to operate securely while the new revenue allocation is phased in.